Busting the Biggest Myths About Buying a Newly Built Home in 2025

by Jeff Hernandez

By Jeff Hernandez, Realtor & Attorney — The Connie Colla Group at RETSY

Buying a home is one of life’s most exciting milestones. But if you’re like many of the clients I’ve worked with here in Scottsdale and across the Phoenix Metro area, you may have skipped over new construction listings. Maybe you’ve heard that new builds are always more expensive, that builders won’t negotiate, or that they don’t have the same craftsmanship as older homes.

I hear these concerns almost weekly. And to be fair, each myth usually has a grain of truth. But in 2025’s housing market, where supply is shifting and buyers are more cautious, these old assumptions can cost you real opportunities.

Over the years, I’ve guided clients through purchases ranging from sprawling Paradise Valley estates to sleek, modern builds in Arcadia. And I’ve seen firsthand how outdated beliefs about new construction kept some buyers from deals that would have been perfect for them.

Let’s dig into the most common myths, and why the latest data tells a very different story.

Myth #1: New Homes Are Always More Expensive

This myth may have been true in the past, but the numbers tell a different story today.

According to the U.S. Census Bureau’s New Residential Sales Report, in June 2025, the median sales price of a new home was $407,200, while the National Association of Realtors’ Existing Home Sales Report showed the median price of an existing home at $435,300; a $28,100 gap in favor of new builds. By July 2025, the median new home price had dropped slightly to $403,800, compared to $422,400 for existing homes; a gap of $18,600.

That reversal is unusual. Historically, new homes have carried a premium. But the flip is real, and it reflects three major factors:

Smaller average home sizes. Builders are adjusting floor plans to meet affordability challenges.
Builder price cuts. Many builders are trimming prices to move inventory.
Higher supply. New homes had a 9.2-month supply in July 2025, compared to just 4.6 months for existing homes.

Myth #2: Builders Don’t Negotiate

This is one of the most persistent myths, and one of the easiest to debunk in 2025.

Builders are carrying finished homes they need to sell, and holding unsold inventory costs money. As Mark Fleming, Ph.D., Chief Economist at First American, explains: “It costs money not to sell the home, and many builders have said they are not pulling back on incentives, especially mortgage rate buydowns.”

The numbers confirm it. According to Zonda’s Builders Increase Incentives in May to Compete in Tough Market and Quick Move-In Inventory Hits 2022 Levels as Sales Stall:

In June 2025, 75% of quick-move-in (QMI) communities offered incentives, and 57% of to-be-built communities did the same.
In July 2025, those numbers rose to 77% (QMI) and 58% (TBB).

What do these incentives look like?

Mortgage rate buydowns (often lowering rates by 1–2%).
Closing cost credits, sometimes worth $10,000 or more.
Free upgrades, like premium appliances or landscaping packages.
Design center credits, often $15,000 or higher.

Myth #3: New Homes Lack Quality

“They don’t build them like they used to.” I’ve heard this phrase countless times.

The truth? Quality depends on the builder, not the year the home was built. Some builders cut corners; others exceed modern standards with advanced insulation, soundproofing, and energy efficiency.

Myth #4: You Don’t Need Your Own Real Estate Agent

This myth is not only false, it can be very costly. Many buyers think working directly with the builder’s representative is enough. But the builder’s rep works for the builder, not you.

The value of having your own agent in new construction is that your agent will:

Review the builder’s contract (which often has very different fine print).
Negotiate incentives you might not know to ask for.
Coordinate independent inspections.
Advocate for your interests if delays or disputes arise.

Bottom line: don’t skip representation. Your own Realtor ensures you’re protected every step of the way.

Beyond the Myths: Why New Builds Make Sense in 2025

Once you strip away the myths, the advantages of new construction become clear:

Affordability: As shown in the latest Census report, new builds are now cheaper than existing homes in many markets.
Energy efficiency: ENERGY STAR-certified homes are at least 10% more efficient than homes built to minimum code levels.
Lower maintenance: You won’t face a surprise roof or HVAC replacement anytime soon.
Customization: Many builders allow you to choose from various layouts, finishes, and upgrades.
Warranties: Most new homes come with coverage for major systems and structural elements.

Regional Insights: Where New Homes Shine

Not every region looks the same, but in several markets, new builds offer especially strong advantages.

California: According to a LendingTree study, the median new home price is $591,116, compared to $784,798 for existing homes; a savings of nearly $194,000.
South: High levels of builder activity result in increased inventory and more incentives.
Northeast & Midwest: In some areas, existing homes still edge out new builds on price, but buyers are drawn to long-term energy and warranty benefits.
Boise Example: New build homes in Boise often list lower prices than resales, according to Upright Inspections.

Here in Arizona, I’ve noticed more clients warming up to new construction. Scottsdale buyers, in particular, are recognizing the value of a home that blends architectural style with modern efficiency, as well as the flexibility of negotiating extras that resales simply don’t offer.

Buyer Tips: How to Maximize Your New Build Purchase

If you’re considering a new home in 2025, here are some practical steps:

Research the builder. Ask for recent customer references and read reviews.
Leverage incentives. Don’t be shy; ask about rate buydowns, credits, and upgrades.
Bring your own agent. A dedicated advocate protects your interests.
Get inspections. According to NAR research, 65% of buyers who inspected new builds found issues, and about 24% didn’t pass on the first inspection.
Time your purchase. Builders often sweeten incentives at the end of a quarter or year.

Conclusion: Don’t Let Myths Cost You

The bottom line? Buying a newly built home in 2025 is no longer the “premium-only” option it used to be. In many cases, it’s the smarter financial choice, especially with today’s incentives and long-term energy savings.

I’ve seen clients’ skepticism turn into excitement once they realize the advantages. And I’ve seen buyers regret ignoring new builds, only to discover later they missed better deals with fewer headaches.

If you’ve been holding back because of myths, it’s time to take another look. With the right guidance, a new build could be the perfect fit for your lifestyle and investment goals.

As someone who has spent more than three decades navigating Arizona’s real estate market, first as an attorney, now as a Realtor®, I can tell you this: the opportunities in new construction today are some of the best I’ve seen in years.

If you’re ready to explore your options, let’s connect. At Jeff Hernandez, Esq., Scottsdale Real Estate Agent & Attorney, together, we’ll make sure your next move is the right one. Call me today at (602) 550-1114 to get started.