Thinking about building a new home in Lake Elmo or buying an existing one instead? You are not alone. Many east‑metro families reach this crossroads as they plan their next move. You want space, a smart budget, and the right timeline without surprises. In this guide, you will compare timelines, total costs, warranties, lifestyle trade‑offs, financing, and resale factors so you can choose with confidence. Let’s dive in.
Build vs. buy at a glance
- New construction: more design control, newer systems, longer timeline, and more line‑items to budget.
- Resale: faster move‑in, established landscaping and neighborhoods, and limited layout flexibility unless you renovate.
- Lake Elmo specifics: lot choices vary widely by subdivision, timelines depend on builder capacity and permitting, and commute trade‑offs depend on proximity to I‑94, I‑494 and Highway 36.
Timeline: how long to move in
New construction stages
New builds typically include lot selection, plan and options, permitting and utilities, foundation and framing, mechanical rough‑ins, drywall and finishes, inspections and a final walk‑through. Landscaping and driveways may be completed after you move in depending on weather and scheduling. Builders manage these steps, but you should track milestones and inspection windows.
Typical time ranges
- Production home on a finished lot: often 3 to 6 months from start of construction to occupancy. Supply chain or weather can extend that.
- Semi‑custom or custom: commonly 6 to 12 months or longer if you add unique features or site work.
- Delays can occur from permitting, utility extensions, subcontractor availability, well or septic work, and seasonal grading restrictions.
Spec homes can shorten your wait since construction is already underway. Ask the builder where the home is in the schedule and what is locked vs. still customizable.
Resale timelines
Resale purchases often close in 30 to 60 days after an accepted offer. That includes inspections, appraisal, and loan approval. If you need to move on a set date, resale usually offers more speed and less scheduling risk than a to‑be‑built home.
Total cost comparison
What is a lot premium
A lot premium is an added price for a specific lot based on features like views, walkout potential, size, or backing to green space. It is separate from the base price of the floor plan. In areas with fewer available lots or special attributes, premiums can be higher.
Build cost components
When building, price out each of these:
- Land or lot price and any premium
- Base home price plus upgrades and options
- Development or utility assessments, if applicable
- Permitting, impact and inspection fees
- Landscaping, driveway, fencing and topsoil
- Builder fees and financing costs, including construction loan interest if required
- Initial property tax estimate and timing of assessment adjustments
Resale cost components
When buying resale, compare:
- Purchase price after negotiation
- Immediate repairs or upgrades you plan to do
- Closing costs and prepaid items
- Landscaping fixes or yard updates
- Ongoing HOA dues or any special assessments
Overlooked items
Many buyers forget yard finishing costs, deck or fence allowances, drainage work, and utility or street assessments. Also consider energy use. Newer homes often meet stricter energy codes, which can reduce operating costs compared with older homes, though actual savings vary by equipment and how you use the home.
Quick budgeting worksheet
Create two side‑by‑side totals:
- Build new: lot price + lot premium + base plan + options + site costs + assessments + construction financing + initial taxes.
- Buy resale: purchase price + planned repairs or upgrades + closing costs + any yard work + HOA dues or assessments.
Warranties, inspections and risk
Typical new‑home warranty coverage
Most new homes include tiered coverage. Workmanship and materials are commonly covered for one year. Systems like plumbing, electrical, and HVAC are often covered for around two years. Structural elements may carry longer coverage, commonly up to ten years. Exact terms, exclusions, and transferability depend on the builder and any third‑party warranty provider. Review the documents carefully.
Inspections you should still do
Even with a warranty, schedule independent inspections:
- Pre‑drywall inspection to check framing, electrical, and plumbing before walls close.
- Final inspection before you close to verify function and safety.
- Post‑move punch‑list at warranty milestones as outlined in your contract.
Contract protections and liens
Document all upgrades, allowances, and change orders with costs and schedule impacts in writing. Confirm whether the builder locks base price, lot premium, and assessments or reserves the right to adjust. Verify the builder’s licensing and that lien waivers are collected from subcontractors and suppliers as payments are made.
Design flexibility and lifestyle trade‑offs
Space and yard size
Building allows you to select a plan that matches how you live, from mudrooms to flex spaces and larger garages. Some Lake Elmo neighborhoods have larger lots and mature trees, while new developments may have smaller lots to meet demand. Lot size varies by subdivision, so walk the site and review plats before you commit.
Neighborhood feel
Resale homes often sit in established neighborhoods with mature landscaping and immediate privacy. New subdivisions can take time to grow in. Setbacks on newer plats may place homes closer together than older properties, which can affect privacy and light.
Commute and location
Lake Elmo is generally commute‑feasible to St. Paul and the Twin Cities. Your actual drive depends on the address and time of day. Test routes during peak hours and consider proximity to I‑94, I‑494, Highway 36, and local arterials. Some new communities sit near growing corridors that offer easier access but may also bring more traffic or noise.
Energy and systems
New homes typically meet current energy codes and may include more efficient HVAC, windows, insulation, and appliances than older homes. Ask builders if they exceed code or offer options like smart home features or renewable energy, and review maintenance expectations for advanced systems.
Financing and appraisal
Resale financing
Most resale purchases use a conventional mortgage, with VA or FHA as applicable. Appraisals rely on comparable sales in the neighborhood.
New construction financing
Production builders sometimes offer in‑house mortgage programs. If you are buying a completed or near‑complete spec home, you may use standard financing. For custom builds, you may need a construction or construction‑to‑permanent loan where interest accrues during construction and your permanent loan closes when the home is finished.
Builder contracts can differ from standard resale contracts. Pay close attention to financing and appraisal contingencies and understand your remedies if the loan or appraisal does not meet expectations.
Appraisals for new homes
Appraisers use comparable sales. Unique upgrades or significant lot premiums can be hard to support when there are few similar nearby comps. Be prepared for possible appraisal gaps. That can mean increasing cash to close, adjusting options, or renegotiating with the builder if the contract allows.
Taxes and assessments
New construction usually triggers a higher assessed value after completion. Ask about the timing of any assessment changes and whether there are separate charges for new infrastructure in the subdivision.
How to decide: a simple plan
- Clarify your timeline. If you must move in 60 days, resale likely fits better. If you can wait and want tailored features, building stays in play.
- Build a total budget. Price the full build, including lot premium, site work, upgrades, and financing. For resale, include immediate repairs and yard work.
- Test real‑world commuting. Drive the exact route during rush hour to your most frequent destinations.
- Walk both options. Tour model homes and active resale listings. Compare room sizes, light, storage, and yard feel in person.
- Protect your risk. Plan inspections, review warranty coverage, confirm contract terms, and understand appraisal and financing contingencies.
How we help in Lake Elmo
You deserve a no‑pressure, well‑informed decision. With two decades of east‑metro experience, The Chuck Eckberg Group provides local insight on Lake Elmo subdivisions, lot selection, builder processes, and resale comparables. Our consultative approach helps you map total costs, timeline, commute, and resale outlook before you commit.
We coordinate the moving parts buyers care about, including vendor referrals, inspection timing, and contract review guidance, all with clear communication. Our track record includes consistent five‑star reviews and recognized ethics and service, which reflects how we work for families every day. If you are weighing build versus buy in Lake Elmo, we will walk you through the facts, not pressure.
Ready to compare your options with clarity? Connect with Chuck Eckberg for local guidance you can trust.
FAQs
How much do Lake Elmo lot premiums cost?
- Lot premiums vary widely based on view, walkout potential, size, proximity to parks or schools, and overall scarcity, so request current price lists for specific subdivisions.
How long does a typical Lake Elmo new build take?
- Production homes on finished lots often run 3 to 6 months once started, while semi‑custom or custom builds commonly take 6 to 12 months or more depending on weather, permitting, and builder capacity.
What inspections should I order for new construction?
- Schedule an independent pre‑drywall inspection and a final inspection before occupancy, then complete punch‑list walkthroughs at the warranty milestones outlined in your contract.
Will a new home reduce my energy costs?
- Generally yes, because new homes must meet current energy codes and often include more efficient envelopes and systems, though actual savings depend on the specific equipment and how you use the home.
What is different about financing a new build?
- Some production builds allow standard mortgages, while custom builds often use construction or construction‑to‑permanent loans where you pay interest during construction and convert to permanent financing at completion.
How do appraisals handle upgrades and lot premiums?
- Appraisers rely on comparable sales, so unique upgrades or high lot premiums may not fully appraise if similar comps are limited, which can create appraisal gaps you should plan for.
