New Construction vs Resale in McKinney

Trying to decide between a new construction home and a resale in McKinney? You are not alone. It is a big choice with real timelines, costs, and trade-offs that affect your daily life and budget. In this guide, you will learn how each path works in McKinney, what to expect with prices and warranties, how to negotiate, and how to use a simple decision matrix and checklist to choose with confidence. Let’s dive in.

McKinney market at a glance

McKinney is a fast-growing city in Collin County with steady demand for single-family homes and new subdivisions coming online. Builders handle most permitting and inspections with the City of McKinney, which includes plan review and milestone inspections before a certificate of occupancy is issued. You can learn more about permitting and inspections through the City of McKinney.

Property taxes in Texas come from multiple jurisdictions, which can include a city, county, school district, and sometimes special districts. Some newer McKinney communities are within Municipal Utility Districts or Public Improvement Districts that add assessments to cover infrastructure. Always verify tax rates and assessments through the Collin County Appraisal District.

School district boundaries can affect tax rates and future resale demand. McKinney ISD serves much of the city, though boundary lines can be complex in growth areas. Check attendance zones directly with McKinney ISD before you make an offer.

Daily life factors matter too. Key commute corridors include US 75, State Highway 121, and nearby access to the Dallas North Tollway. Drive times to Plano, Frisco, Allen, and Dallas vary by neighborhood, so test your commute at the times you care about most.

New construction vs resale: side-by-side

Timeline expectations

• New construction: You will see two paths. Inventory or spec homes can close quickly, similar to resale. Build-to-order homes often take 4 to 9 months depending on permitting, schedules, materials, and weather. Confirm expected completion windows and what happens if there are delays.
• Resale: Typical contract-to-close timelines are about 30 to 60 days, depending on financing, inspection, appraisal, and title work. Cash purchases can close faster. Title issues or a seller leaseback can extend timelines.

Prices, premiums, and incentives

• New construction often carries a per-square-foot premium for modern layouts, new systems, and current finishes. Builders may add lot or elevation premiums and charge for upgrade packages. Incentives like closing cost help, rate buydowns, or appliance credits can offset list price.
• Resale prices depend on condition, lot, and comparable sales. Older homes may need updates or system replacements, which affects your total cost of ownership. In tight markets, some resales attract multiple offers, which can push above list or raise appraisal gap risks.

The size of any price difference varies by neighborhood and market timing. Local MLS data and current builder price sheets are the best way to compare apples to apples in McKinney.

Warranties compared

Most reputable builders offer layered coverage that commonly looks like 1 year for workmanship, 2 years for major systems, and up to 10 years for limited structural components. Scope and exclusions vary, so get the documents in writing before you sign. For context on typical coverage, review NAHB guidance on new-home warranties.

Resale homes usually do not include builder warranties. Sellers may offer a one-year home warranty at closing, or you can purchase a third-party plan. For older homes, you will rely more on inspections and negotiated repairs than long-term structural guarantees.

Inspections and quality control

• New construction: Builders and the city conduct inspections, but you should still hire an independent inspector. Many buyers schedule phased inspections, such as pre-pour or foundation where feasible, pre-drywall, and a final walkthrough. Document a clear punch list and understand warranty request timelines.
• Resale: Order a general home inspection and add specialized checks as needed, such as roof, HVAC, pest, foundation, or sewer scope. If you can, bring in an inspector early to understand risks and negotiate repairs or credits.

Energy and operating costs

Newer homes are built to current codes, with updated insulation, windows, and mechanicals. That often translates into lower near-term utility and maintenance costs. Older homes can be charming and well-located, but may have systems near end of life that require near-term investment.

Appraisals and financing

Appraisals on brand-new communities can be tricky when there are not many closed comparables. Appraisers may lean on nearby comps or cost approach. With resale, appraisals track local closed sales more closely. If you have an appraisal gap strategy in mind, be clear on your financial limits.

For financing, resale purchases use standard mortgages. New construction can be financed with a standard mortgage on a completed home, or you may consider construction-to-permanent loans for certain build paths. Builders often promote preferred lenders with incentives. Compare fees and APRs carefully against outside options before you decide.

For broad market context, you can review metro trends through the Texas A&M Real Estate Center and national buyer insights from NAR.

How to negotiate in McKinney

Working with builders

• What is negotiable: upgrades, allowances, appliances, landscaping, lot premiums on certain inventory, closing cost help, and interest rate buydowns. You may also negotiate clearer inspection rights and punch-list timelines.
• What builders resist: large base price cuts in strong markets and long contingency periods that slow sales. Many prefer offering incentives over cutting price.
• Strategy tips: Compare lender incentives against true closing costs and APR. Ask for the full warranty documents and response timelines in writing. On spec homes, timing can help. Builders may be more flexible near month, quarter, or year end.

Working with resale sellers

• Key levers: price, repair credits, closing dates, earnest money, appraisal terms, and seller-paid closing costs. Strong pre-approval shows you can close.
• Competitive offers: You may consider an escalation clause or higher earnest money. Waiving inspection or appraisal can be risky, so know your downside and repair costs before you trim contingencies.
• Strategy tips: Align on a timeline that works for the seller when you can. Use inspection data to target key repairs, safety items, or system credits that protect your budget.

Manage contingencies and risk

• Inspection: Essential on resale and smart on new construction. Spell out inspection rights and remedies in the contract.
• Appraisal: In fast-moving or brand-new communities, plan for a possible gap. If you pre-authorize extra funds, be sure you are comfortable with the risk.
• Financing: Tie your financing contingency to strong pre-approval and keep your lender updated on appraisal timing and any builder incentives.

A quick decision matrix you can use

Score each factor from 1 to 5. Add your totals to see which path fits best.

1. Move-in timeline urgency: 1 means needs immediate, 5 means can wait 9 plus months.
2. Budget flexibility: 1 means strict cap, 5 means flexible for upgrades and premiums.
3. Desire for customization: 1 means wants move-in ready, 5 means wants many changes.
4. Importance of warranty coverage: 1 not important, 5 very important.
5. Tolerance for near-term maintenance: 1 prefers older character, 5 prefers low maintenance.
6. Sensitivity to property tax or special districts: 1 cannot accept MUD or PID taxes, 5 indifferent.
7. Location flexibility: 1 must be in a specific established area, 5 flexible within the McKinney area.

Interpretation: Higher totals favor new construction. Lower totals suggest resale is a better fit.

Buyer checklists

New construction checklist

• Confirm completion window and remedies for delays in writing.
• Get the builder’s warranty documents, including coverage length, exclusions, and claim process. Ask if the structural warranty is third party.
• Clarify what is included versus upgrades and the cost of each. Confirm allowances for flooring, cabinets, counters, and lighting.
• Verify if the property is in a MUD or PID and check current and projected tax rates through the Collin County Appraisal District.
• Review HOA fees, deed restrictions, and any planned assessments.
• Compare builder preferred lender incentives to outside lenders on true APR and fees.
• Secure inspection rights at key stages and set deadlines for punch list completion.
• Confirm exterior grading, drainage, and landscaping responsibilities.

Resale checklist

• Verify permits for prior work through the City of McKinney and review seller disclosures.
• Ask about the age and remaining life of the roof, HVAC, water heater, and major systems.
• Consider pest and foundation evaluations. Expansive soils in North Texas can affect foundations.
• Review recent property tax history and assessed value changes at the Collin County Appraisal District.
• Read HOA documents and recent meeting notes for special assessments or policy changes.

Compare total cost of ownership

Use this list to create a side-by-side budget for your top options.

• Purchase price and any lot premium or concessions.
• Estimated closing costs, including any seller or builder credits.
• Annual property taxes, including special districts if applicable.
• HOA dues and any known or potential assessments.
• Near-term maintenance or upgrade costs in the first 5 years.
• Energy and utility estimates, considering code-level efficiency on newer homes.
• Homeowners insurance estimates, which can vary by age and condition of the home.

Commute and daily life fit

Make a short list of your most frequent trips and test drive times at real departure windows. US 75, SH 121, and Dallas North Tollway access points shape many McKinney commutes. If a specific school attendance zone or activity hub matters to you, verify boundaries with McKinney ISD and confirm your route works for daily life.

What to do next

You have solid options in McKinney whether you choose a new build or a resale. The best choice comes from aligning your timeline, budget, and location priorities with solid data on taxes, HOA rules, warranties, and total cost. If you want help mapping communities, comparing builder incentives, or reviewing local comps, reach out to a trusted local advisor.

If you are ready to talk through your plan or want a customized side-by-side of neighborhoods, builders, and resale options, connect with Nichelle Keithley. Let’s Connect.

FAQs

How do new construction timelines in McKinney compare to resale?

• Inventory new homes can close quickly like resale, while build-to-order often takes 4 to 9 months depending on scheduling, permits, materials, and weather.

Are new-build homes in McKinney usually more expensive than resales?

• Often yes on a per-square-foot basis, due to modern systems and finishes, although builder incentives can offset some of the difference.

Should I get inspections on a brand-new home?

• Yes. Independent phased inspections, such as pre-pour where feasible, pre-drywall, and final, help catch issues before closing and support warranty requests.

What are MUDs and PIDs and how do they affect taxes?

• They are special districts that fund infrastructure and can add assessments to your annual property tax bill, which you can verify with the Collin County Appraisal District.

Do builders require me to use their preferred lender?

• No, but many offer incentives if you do. Compare APR, fees, and credits against outside lenders to see which option truly costs less.

How can I confirm which school district serves a McKinney address?

• Boundaries can be complex in growth areas. Verify attendance zones directly with McKinney ISD before making an offer.