Katy New Construction vs. Resale: True Cost Comparison

Thinking about a shiny new build in Elyson or a well‑loved resale in Cinco Ranch? The sticker price tells only part of the story. In Katy and Fort Bend County, fees, taxes, energy costs, and timelines can change your bottom line more than you expect. This guide breaks down what really affects total cost, how warranties and negotiations differ, and how to build a 1‑ and 5‑year budget you can trust. Let’s dive in.

What shapes cost in Katy

Katy spans the City of Katy and unincorporated Fort Bend County, and many homes sit in master‑planned communities. Fees and rules vary by location and community, so confirm details for the specific subdivision and utility district. If the home is inside city limits, review the City of Katy’s Development Services for permitting and related costs. If it is in unincorporated areas, check county requirements.

• City of Katy permitting and development: City of Katy Development Services
• County permitting and floodplain management: Fort Bend County government

Upfront costs: new vs resale

New construction pricing starts with a base model. Upgrades like flooring, kitchen finishes, and appliance packages add to that number. Premium lots such as corner, waterfront, or larger backyards often include separate lot premiums. Builders may also require deposits for lot reservations.

Resale pricing reflects comparable sales, condition, and any seller concessions. You might pay more for a home that is move‑in ready or in a prime location within a master‑planned community. In either case, compare your net price after any credits, upgrades, or incentives.

Closing costs and fees

• New construction: plan for permit, development or impact fees, and utility tap or connection fees. Builders sometimes offer closing cost help or rate buydowns through their preferred lender. Ask for an itemized estimate.
• Resale: expect standard title, recording, and lender fees. You can also request seller credits based on inspection findings.

Taxes, HOAs, and MUDs

Property taxes and community fees can be a larger driver of monthly cost than many buyers expect. In Katy, many neighborhoods are part of HOAs and utility districts.

• Property taxes: For a resale, you can review recent tax bills and history at the Fort Bend County Appraisal District. New construction may be reappraised when completed. Review exemptions and guidance at the Texas Comptroller’s property tax page.
• HOA and amenity fees: Master‑planned communities typically have mandatory HOAs and may charge separate amenity assessments. Review the HOA budget, reserves, and rules before you commit.
• MUD or utility district taxes: Many Katy areas include a MUD tax that funds water, sewer, and infrastructure. Add this to your tax estimate.

Insurance and flood risk

New construction can sometimes qualify for lower insurance premiums because systems meet current building codes. Location is still the biggest factor. Established homes with past flood claims may carry higher premiums. Parts of Katy were affected by major storms in recent years. Always check floodplain maps, ask for any elevation certificate, and request the seller’s or builder’s flood history. Fort Bend County offers resources for floodplain management through the county website.

Energy and monthly utilities

New homes often include efficient windows, HVAC, and insulation that can lower utility bills. Actual savings depend on the chosen upgrades, not just the base model. For a resale, request 12 months of utility bills. For a new build, ask the builder for equipment specs and energy ratings so you can compare apples to apples.

Maintenance, repairs, and move‑in items

Resale homes may need near‑term replacements, such as HVAC components, a water heater, or a roof. New construction often reduces these early repair costs, but you should budget for items not included by the builder. Common post‑close costs include landscaping, window coverings, and backyard fencing.

Warranties and what they cover

Most builders use a common “1‑2‑10” structure: one year on workmanship, two years on systems like electrical and plumbing, and 10 years on major structural elements. Many enroll homes with a third‑party provider, such as 2‑10 Home Buyers Warranty. The National Association of Home Builders also outlines standard new‑home warranty practices. Always get the full warranty in writing and understand exclusions, claim steps, and deadlines.

Resale properties are usually sold as is unless repairs or credits are negotiated. Some sellers offer a one‑year home warranty for appliances and systems. Independent inspections are essential for both new and resale purchases. For new builds, plan a pre‑drywall inspection if allowed, a final walkthrough, and an 11‑month warranty walkthrough.

Timelines and how they affect cost

• New construction: Production builds often take 4 to 9 months from groundbreaking. Delays can come from permits, utilities, weather, materials, or change orders. Custom homes can take 6 to 18 months.
• Resale: Standard mortgage transactions usually close in 30 to 45 days, sometimes faster for cash.

Longer new‑build timelines can add temporary housing, storage, or lease overlap. Rate changes during construction can also impact your monthly payment unless you secure a rate lock or use a builder incentive.

Negotiation dynamics in Katy

Builders manage margins and inventory. They often prefer offering upgrades, closing cost help, or a rate buydown over large price cuts. Flexibility shifts with demand and interest rates. Resale sellers negotiate based on market inventory and motivation, often trading price, repairs, or closing cost credits.

Appraisal can be a sticking point. High‑end upgrades in a new build do not always appraise at full cost if comparable sales do not support the value. For resales, appraisals lean on recent local comps. Review market behavior and buyer‑seller trends through industry resources like NAR for broader context.

Schools and boundaries: verify early

Many buyers prioritize Katy ISD for school assignment and programs. Attendance zones can change, and assignments vary by address. Verify current boundaries and capacity directly through Katy Independent School District. Confirm any neighborhood‑specific claims before you make final decisions.

Build your 1‑year and 5‑year plan

Create a simple worksheet for each property you are considering, one new build and one resale. Include the following to compare total cost of ownership:

• Upfront: purchase price, upgrades or concessions, closing costs, initial landscaping, blinds, fence, moving and storage, utility connection fees.
• Annual: mortgage, property taxes, HOA dues, MUD taxes, insurance, utilities, routine maintenance.
• Years 3 to 5: expected replacements for resale (roof, HVAC, water heater), plus desired upgrades or landscaping for a new build.
• Timing costs: lease overlap, temporary housing, storage, and potential interest rate changes for new builds.

Use FBCAD for property tax history and the Texas Comptroller for exemptions when estimating taxes. Check county or city pages for permit or utility considerations that can affect your timeline and budget.

Quick comparison checklist

Use this when you are down to a specific new build vs a specific resale.

• Documents
  • New build: purchase agreement with delivery timeline, list of inclusions, upgrade price list, written builder warranty, HOA documents, site plan, and any impact or utility fees.
  • Resale: seller disclosures, past inspection reports if available, repair invoices, 12 months of utility bills, tax history from FBCAD, HOA documents.
• Inspections
  • New build: third‑party inspections at key stages, final walkthrough, and schedule the 11‑month warranty walk.
  • Resale: full home inspection plus specialty checks if indicated.
• Financing and appraisal
  • New build: written estimate of total cash to close, details on incentives and whether using the builder’s lender is required, appraisal plan for upgrades.
  • Resale: preapproval and appraisal contingency, request seller credits based on inspection.
• Community and risks
  • Verify school assignments with Katy ISD, review HOA rules and budgets, check floodplain maps and lot drainage history, and scan planned community development.

Decision guide: which fits you

• Choose new construction if you want design choices, lower near‑term maintenance, and are comfortable with a longer timeline and potential upgrade costs.
• Choose resale if you need to move in 1 to 3 months, want established landscaping or a specific location, and can budget for possible near‑term repairs.
• Unsure: compare a real new build and a real resale side by side. Use the same worksheet and assumptions so you can see the true difference in 1‑ and 5‑year costs.

Ready to run the numbers on actual homes in Katy and Fort Bend County? Get a side‑by‑side estimate, a clear timeline plan, and a negotiation strategy that fits your goals. Reach out to Rose Dunn to get started today.

FAQs

What costs make new construction in Katy higher than resale?

• Base price plus upgrades, lot premiums, permit and utility connection fees, and move‑in items like landscaping and window coverings can raise the total beyond the sticker price.

How long does a Katy new build usually take?

• Production builds often take 4 to 9 months from groundbreaking depending on permits, utilities, weather, materials, and change orders; custom builds can take longer.

How do I estimate property taxes for a Katy home?

• Review recent bills and values at FBCAD for resales and use the Texas Comptroller’s guidance on exemptions; remember new builds may be reappraised when completed.

Do builders in Katy offer warranties and what do they cover?

• Many offer a 1‑2‑10 style warranty that covers workmanship, systems, and structural elements on a defined schedule; read the written warranty for terms and exclusions.

What negotiation levers work best with builders?

• Upgrades, closing cost assistance, and rate buydowns are common. Builders may be more flexible on incentives than on base price, depending on demand.

How should I compare energy costs between homes?

• Ask for 12 months of utility bills for a resale and builder equipment specs for a new build so you can compare actual usage and efficiency rather than estimates.