Thinking about a new construction home in Severance or eyeing a well-kept resale? You are not alone. With Northern Colorado growing quickly, both options can work well if you understand the tradeoffs. In this guide, you will learn how costs, fees, timelines, inspections, and contracts differ in Severance so you can compare apples to apples and protect your budget. Let’s dive in.
New build vs. resale: the overview
Why buyers choose new builds
New construction offers modern floor plans, brand-new systems, and lower initial maintenance. You also get builder warranties and the chance to personalize finishes if you build from the ground up. Builders may offer incentives that help with rate buydowns, closing costs, or upgrades, which can improve your total value.
Why buyers choose resale
Resale homes often close faster and may be in established neighborhoods with completed landscaping and finished basements. You can negotiate inspection items and sometimes receive seller credits for repairs or closing costs. If you want immediate occupancy or prefer a traditional contract, resale can be a smoother path.
Cost comparison: what to budget
Price per square foot
Start with a clear calculation: total price divided by finished living square feet. Adjust for upgrades, lot premiums, and whether the basement is finished. New builds commonly carry a premium per finished square foot because systems are new and warranties are included, but the actual premium varies with local market conditions.
When comparing, normalize for:
- Finished vs. unfinished basements and total finished area.
- Lot type and location, including corner, walkout, or view lots.
- Structural options like a 3-car garage or expanded kitchen.
- Energy efficiency and age of systems, since newer homes may lower maintenance early on.
Upfront costs you will see
New build
- Base price plus options and upgrades. Common add-ons include flooring, countertops, appliance packages, and structural changes.
- Lot premiums and possible model-home pricing premiums.
- Landscaping, fencing, window coverings, and sometimes driveway or garage finishing.
- Community or HOA initiation fees. Builders may also offer mortgage or rate incentives that require a preferred lender.
Resale
- Renovation or refresh costs if you want updates.
- Possible seller concessions toward closing costs, depending on market leverage.
Both
- Closing costs, title and recording fees, lender fees, and prepaid taxes and insurance. Amounts vary by lender and price point.
Ongoing fees and taxes
Property taxes
- Review the current mill levy and recent tax history. New homes on new lots may be assessed differently at first, then adjust after a full tax cycle. Check the Weld County Assessor or Treasurer to understand current and projected taxes.
HOA dues
- Many Severance communities have HOAs that cover common areas and amenities. Dues vary by neighborhood. Ask for the budget, reserves, and any planned assessments.
Metro or special district taxes
- Newer developments often use metro districts to fund roads, water, sewer, and other infrastructure. This typically adds an extra mill levy or annual fee. These charges can materially increase your yearly cost beyond county property taxes, so review the district’s disclosures, mill levy, and debt schedules.
Utilities and impact fees
- New builds may have one-time tap fees for water and sewer connections. Ask for builder estimates for monthly utilities. For resales, request recent utility bills to compare.
Timeline and process differences
How long to close
- New construction timelines vary. Quick-move-in or spec homes can close in weeks to a few months. To-build homes often take 4 to 12 or more months based on builder schedules, weather, inspections, and utility availability. Confirm the projected completion date and what happens if the builder is delayed.
- Resale transactions usually close in about 30 to 45 days for financed buyers and sooner for cash. Your timeline depends on financing, appraisal, and inspection negotiations.
Inspections and disclosures
Resale
- You will typically have a general inspection contingency covering structure, roof, mechanicals, and more. Colorado sellers provide a condition disclosure for buyers to review. You can request repairs or credits during negotiations.
New build
- Builders may limit access to the home until certain milestones, though many allow pre-drywall and final inspections. Independent inspections are still recommended. Consider pre-drywall if permitted, then a final inspection near completion to build your punch list.
Radon and pests
- In Colorado, radon testing is commonly recommended for both new and resale homes. Pest inspections are also a smart precaution.
Warranties and coverage
New build
- Builders often provide layered warranties, such as one year for workmanship and materials, two years for certain systems, and structural coverage up to 10 years. Confirm exactly what is covered, how to file claims, and response times.
Resale
- Resale homes do not include builder warranties. You can purchase a home warranty separately if desired. Ask about any existing transferable warranties on major systems or recent improvements.
Contracts and protections
- New build agreements are drafted by builders and usually favor the seller. Terms may include delay clauses, arbitration, and limits on remedies. Review what is included, the upgrade change order process, financing contingencies, inspection access, and completion remedies before you sign.
- Resale contracts in Colorado are typically negotiated using standard forms, which allow for inspection and financing contingencies. You have more flexibility to negotiate deadlines and remedies.
Incentives and representation
Builder incentives to evaluate
Builders may offer rate buydowns, closing cost credits, discounted upgrades, or lot premium credits. Some incentives are tied to using the builder’s preferred lender or title company. Compare the net price after incentives against comparable resales and verify any exclusions in writing.
Broker commissions and your agent
Builders often offer a co-op commission to buyer brokers. Confirm early whether your agent will be compensated and how that is documented. If a builder asks you to sign any commission or registration form, review it with your agent to avoid conflicts with your representation agreement.
Why your representation matters
Your agent can help you compare true costs, read through builder contracts, and coordinate inspections. They will review HOAs and metro district disclosures, verify tax implications, and make sure incentives improve your bottom line. They also track builder timelines, manage punch lists, and negotiate solutions when issues arise.
Severance buyer checklist
Use this checklist to compare any new build or resale home side by side:
- Final price and price per finished square foot, plus the exact calculation you used.
- Lot size and type, including corner, walkout, view, and topography.
- Year built or builder model and permit date.
- Square footage by level, including any finished basement area.
- What is included: appliances, window coverings, landscaping, fencing, and garage features.
- For new builds: detailed upgrade list with itemized costs and any design center allowances.
- Warranties: builder warranty documents and warranty provider contacts, or any transferable warranties on resale.
- Utilities: recent bills for resale or builder estimates for gas, electric, and water on new builds.
- Property tax history, current tax amounts, and any pending assessments.
- HOA documents: CC&Rs, budgets, reserves, current dues, and special assessments.
- Metro district disclosures: mill levy, debt service, bond schedules, and any annual fee structure.
- Inspection and repair history for resales, or inspection access policy and punch list process for new builds.
- Projected completion date for new builds and written remedies if the builder misses the date.
Which option fits your goals
Choose new construction if you want modern layouts, new systems, and the protection of warranties, and you have flexibility on timing. Incentives or design personalization can add value when the numbers pencil out. Budget for items that are not included, like landscaping and window coverings, to avoid surprises.
Choose resale if you need a faster move, prefer established neighborhoods, or want the ability to negotiate repairs or credits. You may face more maintenance sooner, but your upfront purchase price could be lower than an equivalent new build, depending on the current market.
Next steps in Severance
- Pull current sold comps and active inventory for Severance to compare price per finished square foot between new builds and resales.
- Ask for the full HOA and metro district disclosure package before committing, including mill levies and bond details.
- Verify current property taxes and any special district taxes with county records.
- For new builds, request the purchase agreement and warranty packet in advance so your agent and, if needed, an attorney can review before any deposit.
- If you plan to use incentives, get the lender and title conditions in writing and confirm the net effect on your monthly payment and cash to close.
Ready to weigh the numbers for your situation? Reach out for a side-by-side comparison tailored to your budget, timeline, and preferred neighborhoods. You will get clear cost breakdowns, an incentive analysis, and contract guidance to protect your interests from offer to close. Connect with Tamera Nelson to start your plan today.
FAQs
How much more per square foot do Severance new builds cost vs. resale?
- New builds often carry a premium per finished square foot due to new systems and warranties, but the size of that premium varies with local inventory and incentives. Compare sold comps and adjust for finished basements, lot premiums, and upgrades.
What monthly costs differ between new builds and resales in Severance?
- Budget for property taxes, HOA dues, and any metro district taxes or fees. New builds may also have higher initial utility setup or tap fees, while resales provide actual utility bill history to review.
How long does a Severance new build take and what if it is delayed?
- Spec homes can close in weeks to a few months. To-build timelines often run 4 to 12 or more months. Confirm the completion date, allowed delays, and written remedies in the builder contract.
What inspections should I do on a new construction home?
- Consider a pre-drywall inspection if permitted, plus a final independent inspection focused on structure, HVAC, plumbing, and electrical. Add radon testing and pest inspections as appropriate.
Are builder warranties reliable and what do they cover?
- Many builders offer one-year workmanship, two-year systems, and up to 10-year structural coverage. Verify coverage details, claim procedures, response times, and whether third-party providers back the warranty.
Will I have to use the builder’s lender to get incentives?
- Some incentives require using a preferred lender or title company. Ask for the conditions in writing and compare the total cost of financing to ensure the incentive improves your net outcome.
How does buyer agent compensation work with builders in Colorado?
- Builders often offer a co-op commission to buyer brokers. Confirm in writing that your agent will be compensated and make sure any builder paperwork aligns with your buyer representation agreement.
What are metro district taxes in Severance and how do they impact me?
- Metro districts help fund infrastructure in newer communities and add an extra mill levy or annual fee to your property tax bill. Review the district’s disclosures, debt schedules, and mill levy to understand your total annual cost.
