Thinking about whether to build new or buy a resale home in Katy or Waller? You’re not alone. With active master-planned communities and a wide range of resale options, the choice can feel overwhelming. In this guide, you’ll see how total cost, MUD taxes, warranties, timing, and resale outlook compare so you can choose with confidence. Let’s dive in.
Katy and Waller at a glance
Katy spans parts of Harris, Fort Bend, and Waller counties, so two similar homes can sit in different tax and utility districts. That matters for your annual costs. Portions of the area fall within Katy ISD, Waller ISD, or nearby districts, and school assignment often influences demand and pricing.
You’ll find well-known master-planned communities like Cinco Ranch, Falcon Point, Cane Island, and Firethorne, plus newer developments farther west. Many newer subdivisions use Municipal Utility Districts (MUDs) to finance infrastructure. Commute routes to the Energy Corridor and West Houston, along with community amenities, are common buyer priorities here.
Total cost of ownership
Price per square foot
New construction often costs more per square foot because of current floor plans, finishes, and lot premiums. Resale homes may be priced lower but can require upgrades like roof, HVAC, or kitchen improvements. When you compare, include any near-term renovation needs.
Property taxes and MUDs
In greater Katy, property taxes come from multiple entities, which may include the school district, county, city, and a MUD. MUDs fund roads, water, sewer, and drainage with bonds, and their tax rates can add a meaningful amount to your annual bill. Always verify the full tax rate for a specific lot or address and whether the MUD’s bond debt is new or being paid down.
- Ask if the tax rate shown is current or projected.
- Compare rates across neighborhoods that sit in different counties or districts.
- Confirm whether new bonds or rate changes are expected.
Example only: If you buy at $400,000 and the combined property tax rate is 2.5%, you’d pay about $10,000 per year. If a MUD adds another 1.0%, that’s an additional $4,000 per year. Exact amounts vary by property, so check the current tax profile for each home.
HOA fees and assessments
Master-planned communities typically charge HOA fees and sometimes enhancement assessments. Fees vary based on amenities like pools, trails, and community events. Compare HOA costs and scope of services as part of your annual budget.
Insurance
Newer homes may benefit from current codes and newer systems, which can reduce certain near-term risks. Even so, insurance pricing depends on location factors like flood zone and wind exposure. Older resale properties might have higher premiums if roofs, plumbing, or HVAC systems are near the end of their life.
Maintenance and repairs
New construction usually has lower short-term maintenance and may be covered by a builder warranty for qualifying defects. Resale homes can require immediate repairs or replacements within the first 0–5 years. Estimate these costs upfront and negotiate accordingly.
Utilities and energy
New builds are often more energy efficient due to current insulation, windows, and HVAC standards. That can lower utility costs. Keep in mind that larger open-plan homes can offset energy gains, so compare both size and efficiency.
Warranties and inspections
New construction warranty basics
Builders commonly provide tiered coverage, such as 1-year workmanship, 2-year systems, and 10-year limited structural coverage. Terms vary by builder and may be administered by a third-party warranty company. Warranties cover defects, not normal wear, so review the documents and timelines before you sign.
Inspections you still need
For new builds, consider a pre-drywall inspection, a final inspection, and a thorough walk-through to create a punch list before closing. For resale, order a general home inspection and add specialized inspections as needed based on the home’s age and history. Inspections help you find issues early and plan your budget.
Repair process and disclosures
Ask the builder to explain the punch list process, response times, and escalation steps if something isn’t fixed promptly. For resale homes, review the seller’s disclosure and ensure any agreed repairs are documented and completed. In both cases, keep records and timelines in writing.
Incentives, negotiation, and timing
Builder incentives
Builders may offer closing cost help, rate buydowns, price reductions on inventory homes, or upgrade packages. Incentives often reflect market conditions and can be tied to using a preferred lender or title company. Ask for a written breakdown of incentives and compare them against independent financing options.
Resale concessions
Resale sellers may offer price reductions, closing cost credits, or repair allowances, especially if the home has been on the market longer. Leverage comparable sales and days-on-market to shape your offer strategy.
Timing and move-in needs
- Completed spec homes: often ready to close within 30–90 days.
- New builds from the ground up: roughly 4–9 months for many production builders, with possible delays from weather, permitting, or materials.
- If you need rapid occupancy for work or school, resale or an existing inventory home may fit better.
Resale risk and future value
What supports appreciation
Homes in areas with strong school demand, convenient access to job centers and major roads, and established master-planned amenities tend to draw steady interest. Those factors can support long-term value.
Potential headwinds
A large supply of new construction nearby can slow appreciation in the short term. Higher tax burdens, including MUD rates, can shrink the buyer pool. Longer commute times can also weigh on demand if employment patterns shift.
Liquidity and ease of resale
Move-in-ready homes in established neighborhoods with convenient commuting options typically attract broader demand. Well-located new homes in master-planned communities can also resell well, but periods of heavy new-home supply in the same area may create more competition. Highly customized features may narrow your future buyer pool.
Side-by-side comparison checklist
Use this to compare a new build and a resale home you’re considering:
- Total purchase price and any concessions
- Full tax rate, including MUD
- HOA fees and any enhancement assessments
- Insurance estimates by address
- Five-year maintenance/upgrade outlook
- Warranty coverage (new) vs negotiated repairs (resale)
- Move-in timeline and flexibility for work/school
- Neighborhood factors: school assignment, commute routes, nearby amenities, planned development
Questions to ask builders
- What is the full projected tax rate, including school district, county, city, and MUD? Any pending bond elections?
- What are the HOA fees and are any assessments planned?
- Can I review the warranty, claim steps, and response timelines in writing?
- What incentives are available, and do they require a preferred lender or title company?
- What is the build timeline by milestone, and how are delays handled in the contract?
Questions to ask resale sellers and inspectors
- How old are the roof, HVAC, water heater, and major systems?
- Can I review the seller’s disclosure and permits for recent work?
- Do you recommend specialized inspections, such as pest, sewer scope, or foundation?
When new construction is worth it
- You want modern floor plans, energy efficiency, and the latest building standards.
- You prefer lower near-term maintenance and warranty coverage for qualifying defects.
- A longer timeline fits your move plans, or a spec home meets your timing.
- Builder incentives meaningfully offset costs.
When resale makes sense
You need to move soon and want established neighborhood context.
You value larger lots or mature landscaping that newer areas may not offer.
The price-per-square-foot is lower and you’re prepared to tackle targeted upgrades.
The community has a tax profile that works well for your budget.
How to choose in Katy and Waller
- Shortlist two or three homes in different neighborhoods or builders.
- Pull the full tax picture, including MUD, plus HOA and insurance estimates.
- Get inspection bids or upgrade estimates for the resale option.
- Request written warranty terms and incentive sheets for the new build.
- Compare five-year total costs, move-in timing, and resale outlook.
Ready for guidance?
If you’re weighing new construction against resale in Katy or Waller, a clear side-by-side comparison will save time and money. Our team can help you verify tax rates, incentives, timelines, and inspection priorities so you can buy with confidence. Connect with The Hometown Team to explore options and make a plan that fits your move.
FAQs
What should I know about MUD taxes in Katy and Waller?
- MUDs fund infrastructure with bonds and add their own tax rate, which can increase your annual bill by thousands. Always verify the current and projected rate for each property.
Do builder warranties replace the need for inspections?
- No. Warranties cover defects within defined terms, but independent inspections before closing help you catch issues early and document punch-list items.
How long does a new build usually take?
- Many production builds take about 4–9 months, while completed inventory homes can close in 30–90 days. Weather, permits, and materials can affect timing.
Are new homes always more expensive to own?
- Not always. New homes may cost more upfront but can have lower near-term maintenance and energy costs. Your final costs depend on taxes, MUD, HOA, insurance, and any resale repairs.
Which resells faster: new or resale homes?
- Both can resell well. Established neighborhoods with convenient commuting options often see steady demand, while new master-planned communities can perform strongly too, depending on supply and tax profiles.
