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Existing homes in a community selling for 20% more than a new construction?

My wife and I are building a new construction home in a neighborhood just a few miles south of downtown Charleston, South Carolina. This development has been building out by Lennar since 2016 as far as I can tell.

We are building a 5br, 3.5 ba home that’s about 2550 square feet with a detached 2 car garage. The home is on an average lot for the neighborhood, backing up to a wooded area. The lot upgrades were insignificant in price - something like $2,000-3,000 for double the yard space. We are paying $490,000 all-in, inclusive of an optional 3rd floor loft that none of the homes have in the neighborhood, as well as the premium kitchen and bathrooms.

Oddly, all of the existing homes for sale in the neighborhood are upwards of $600,000, some pushing $700,000. These homes are largely the same size in square footage, and many of them are smaller, with fewer bedrooms and bathrooms and similar lots. Upon review of the pictures online of listings and sales, I suspect they are of similar quality, with maybe an extra upgrade or two here or there, but nothing that suggests to me that they should sell for $100k+ more.

We are 25 years old and previously have only owned a pre-built home so this is our first experience with a new-construction and we have not studied the market but I’m curious - is it typical that a community under development would have existing homes selling for a 20% premium over new builds?

I understand that there’s a supply crunch and people may be rushing to get into an existing home to secure low rates so they can afford more home, but it seems a bit odd unless it’s a typical dynamic of new-build neighborhoods. Thoughts on the matter?

submitted by /u/ForesightTradingOnYT
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source https://www.reddit.com/r/RealEstate/comments/jlja04/existing_homes_in_a_community_selling_for_20_more/
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