Resale, Inventory Home, Or Custom New Build?

When discussing buying your next home, you might not know where to start. There are many options. Which is why understanding the differences between a resale home, an inventory home, or a newly constructed home is key to finding the right fit for your family's bright future.

But before you try to decide which kind of home is ideal for you, there are some questions that must be asked.

Questions To Consider Before You Choose Between A Resale, Inventory, Or Custom Home Build

The first is this: What's important to you?

For most people, location is the first thing to come to mind.

Do you want to be close to family? Your job? Do you have a specific school district in mind for your children? All these questions are vital considerations for every new owner.

Once you narrow down the "where", the next question to ask is: What features do you want?

Do you want a one- or two-story home? A three-car garage or a two-car garage? Would you prefer a big yard or a little one? Which features best fit your lifestyle?

Once you've answered these questions, it's time to consider whether to get an inventory home, a resale home, or a custom new build.

This is where people tend to have doubts about the difference between each home type and which is the right choice. Our hope is that the information you find here will steer you toward the answers you should ask to uncover your specific wants and needs.

What Is A Resale Home?

A resale home is exactly what it sounds like. It's an existing home that has already been built, usually in an established neighborhood within the city.

If you are a handy person and purchase a fixer-upper, you may be able to buy it at a lower cost and have higher equity if you are willing to put in a bit of work yourself with an extra investment. This is often seen as one of the more cost-effective ways to purchase because you're dealing with older homes that often have a depreciated value.

However, purchasing a resale might mean you are sacrificing newer technology and energy efficiency found in many new homes.

Another disadvantage to purchasing a resale is warranties are usually not transferable, so most of the coverage the home once had with its first buyer is gone. This lack of warranty could affect various features, from the appliances to the construction materials used in the home.

Advantages Of Choosing A Resale Home

Buying a resale home has its perks. The biggest advantage of a resale home is that you know exactly what you're getting, since these homes are inspected and searched for major damage and defects before you buy.

Resale homes often have unique designs and are in neighborhoods with a strong community feel. If you buy one of these homes, you might see its value grow as the area gets better over time.

Plus, these homes can have beautiful gardens and landscaping that are already grown in.

Resale homes can also be less expensive up front, especially in cities like Houston where there are many different styles of older houses.

Sometimes, sellers are ready to move quickly and might sell for a lower price. Since there's no need to wait to complete a new construction, resale homes are perfect if you need to move quickly on a strict timeline.

Potential Drawbacks And How To Minimize Them

Resale homes aren't new, and some can be quite old. Older homes can sometimes surprise you with issues like old wiring or leaky windows, or more serious structural flaws in things like the roof that can be expensive to fix.

They don't come with the warranties that new homes do, which means if something breaks, you have to pay for it yourself.

Hire experts to check important things like the foundation and heating system for damage, and have some money set aside to fix any issues that might come up right after you move in.

What Is An Inventory Home?

An inventory home is a brand-new house that's already built and ready for you to move in. Everything in the house is unused, from the appliances to the paint on the walls.

Inventory homes come with extensive warranties, including builder's and manufacturer warranties, which protect your purchase. Overall, they have a fair amount in common with resale homes. The primary difference is that inventory homes often have super similar architecture, so they may not have as much "character" as a resale home.

Key Benefits of Inventory Homes

Buying a new inventory home comes with lots of pluses. No one has ever used or lived in this property before you, so you get all the warranties that come with a newly constructed home.

This means if something does go wrong, you might not have to pay out of pocket to fix it. Also, since these homes are ready to go, you can move in quickly after your loan is approved, usually within a month or so.

And the move-in process is quick, just like with a resale home. Since the home is already constructed, you can often move in within a month or so after your financing is approved.

Inventory homes also have the latest in energy-saving, tech, and safety features, which helps cut down on your bills. And everything is brand new, so you likely won't need to fix anything soon.

Considerations Before Purchasing an Inventory Home

There are a few things to think about before you decide on an inventory home. For example, you don't get to make many choices about how the house looks.

Things like the color of the walls, the type of floors, or the backyard setup are already decided by the builders.

These homes are also in developments where all the houses use the same traditional layouts. The result is that they often look similar and are close together, which might not meet your preferences. And while the builders have put everything together nicely, the lack of personal touch might make it feel less "yours" right from the start.

What Is A Semi-Custom Or Custom New Build?

A semi-custom or custom new build allows you to create a home that is completely tailored to your preferences and needs. Unlike resale and inventory homes, these houses are designed from the ground up around your specifications.

Key Benefits of Semi-Custom or Custom New Builds

The primary benefit is that you control every detail from the floor plan to the finishes, which makes sure every square foot and finish in your home improves the way you live your life.

This means you every aspect of your home meets your specific lifestyle preferences, from a large, open kitchen to a dedicated home office space.

These homes are built on larger plots, often offering more privacy and unique architectural designs that stand out from typical neighborhood homes. Plus, with many builders offering customizable options, you can ensure your home is both functional and reflective of your personal taste.

Considerations Before Choosing a Semi-Custom or Custom New Build

There are several considerations to think about before committing to a custom home. The design and construction process can be lengthy depending on the complexity and location of the build, and working with your builder to price the project accurately from the start and adjust your plans to stay within budget is important.

While you have the opportunity to customize many aspects of your home, it can be overwhelming without proper guidance and planning from builders like Dunn & Stone. You'll have to make decisions about everything from the materials you use to your paint colors.

Finally, because a custom project is a newly built home, moving in will take longer compared to buying an inventory or resale home. You’ll need to plan for this extended timeline and consider temporary housing if necessary.

Get A Newly Constructed Home From Dunn & Stone

Building a customized home from scratch might be the costlier alternative to resale or new inventory home but it is the only option that allows you to build a home that you wouldn't change a bit. After reviewing the different options for your next home, it is important to find the course of action that fits you best.

Schedule a call with Dunn & Stone Builders to ensure you get the best information to make the best decision. We have new inventory homes available for quick move-in, or we can build your custom dream home on your lot from scratch.

Our Top Pick: Liberty Home Guard

If you're looking for the best home warranty company in Texas, Liberty Home Guard stands out as the top choice in 2025.

It’s not the cheapest option on the list, but it consistently ranks as one of the top home warranty providers thanks to its strong home warranty coverage, fast service, and unmatched flexibility.

Liberty’s plans are designed for real life in Texas, where dual air conditioning systems, major home systems, and high summer temps are the norm.

It’s one of the few home warranty companies that includes coverage for two electric AC units in its standard plan.

What also sets Liberty apart is its level of customization.

With over 30 add-on coverage options, homeowners can build a plan that fits their property perfectly, whether they need coverage for a septic system, a swimming pool, or extra laundry appliances.

This kind of flexibility is rare among other home warranty companies.

It’s not just the coverage options that impress, though.

Liberty earns high marks from home warranty customers for its responsiveness and customer service.

You can manage your home warranty contract through their mobile app, which many Texas homeowners love for the convenience when filing a claim or tracking repairs.

Visit Liberty Home Guard's website to view plan details or explore Liberty Home Guard’s plans directly.

Quick Facts: Liberty Home Guard

Runner Up: American Home Shield

Coming in close behind Liberty, American Home Shield ranks as one of the best home warranty providers in Texas for 2025.

With over 50 years of experience and broad home warranty coverage that includes preexisting conditions, this provider has built a strong reputation among homeowners with older homes, aging heating systems, and major appliances.

In a 2025 This Old House survey, 44% of Texas homeowners selected American Home Shield as their current provider, making it one of the most widely used Texas home warranty companies.

Our favorite features is the $5,000 HVAC coverage cap per system, which is ideal for the Texas climate. The reason we love it is because A/C repairs are some of the most common (and expensive) home service calls made in the Houston area.

Quick Facts: American Home Shield

Other Great Home Warranty Companies In Texas

While Liberty Home Guard and American Home Shield earned our top spots, they’re not the only Texas home warranty companies worth your attention.

Several other home warranty providers offer solid coverage, competitive pricing, and reliable service.

If you're looking for alternatives that still deliver great value and protection for your covered home systems, the options below are absolutely still worth considering.

First American Home Warranty

While it’s a bit pricier than some affordable plans (with monthly premiums starting at $42), First American Home Warranty makes up for it with higher coverage limits and solid protection for both major appliances and covered systems.

This is especially appealing to owners of high-end homes in Houston.

Some plans offer up to $7,000 in appliance coverage and unlimited HVAC system coverage, which is what makes this company a strong contender for anyone who wants broad, comprehensive coverage (as long as you’re willing to pay a little more for it).

One standout feature is the First American Advantage upgrade, which adds protection for poor installation issues not always covered under standard home warranty plans.

Quick Facts: First American Home Warranty

Cinch Home Services is a strong option for Texas homeowners looking for affordable plans with practical extras.

With monthly premiums starting at just $35, Cinch is one of the most budget-friendly providers on this list.

But don’t let the price fool you. It packs in value that rivals bigger names.

One standout feature is its $500 homeowners insurance deductible reimbursement, included with its Complete Home Plan.

That alone sets it apart from most home warranty coverage options.

It also covers damage from rust and corrosion, which many home warranty companies exclude despite its usefulness in humid areas like Houston.

Cinch also offers a 180-day workmanship guarantee, six times longer than the industry norm That’s one of the best repair guarantees in today’s market.

Quick Facts: Cinch Home Services

Old Republic Home Protection

Old Republic Home Protection keeps things simple. And that’s exactly why many Texans love it.

If you’re the kind of homeowner who wants a no-fuss plan that covers the essentials, this provider might be your best bet.

Their home warranty plans focus squarely on major systems and important appliances (the things that typically break and cost the most to fix).

Customization is limited, but the tradeoff is a more straightforward service agreement and lower out-of-pocket costs.

With monthly premiums starting at $45 and service fees around $100, Old Republic offers better-than-average value.

Quick Facts: Old Republic Home Protection

HomeServe offers a different take on home warranty coverage in Texas, and it works well for homeowners who want low service fees and highly targeted protection.

Instead of bundling everything into one plan, HomeServe allows you to pick and choose the covered systems you care about most, like plumbing, electrical, or HVAC.

To sweeten the deal, several of their plans have no service fees at all.

That’s a massive advantage if you’re looking to reduce out-of-pocket costs on normal wear repairs.

But because each system is covered under a separate plan, achieving full comprehensive coverage can get pricey.

You may need to purchase multiple plans to match the kind of protection you’d get from bundled providers like Liberty or options found on American Home Shield’s website.

Quick Facts: HomeServe

Choice Home Warranty

With one of the most affordable home warranty plans in Texas, Choice Home Warranty offers monthly premiums starting at $35 and a predictable, fixed $85 service fee.

It’s a budget-friendly option for homeowners who want wide home warranty coverage without a complicated pricing model.

Choice’s plans cover both HVAC systems and major appliances, and they include extras that other low-cost providers skip like limited roof leak coverage.

It’s a strong fit for value-seekers who still want protection for high-cost repairs.

However, Choice’s reputation comes with a caveat.

Despite its large customer base (49,000+ reviews on Trustpilot), it has received criticism for poor customer service and claim denials more frequently than top competitors.

Quick Facts: Choice Home Warranty

Home Warranty of America

Home Warranty of America (HWA) offers plans designed for both homeowners and real estate professionals, which makes it a versatile choice for a wide range of Texans.

Known for its transparent pricing and solid HVAC coverage, HWA is a wise pick for those living in hotter climates like Houston where AC systems get put to the test.

Plans start at $46/month, and coverage includes major appliances and systems, with HVAC protection capped at $5,000.

While the base pricing is competitive, be aware that add-on options can increase costs quickly, especially if you’re customizing coverage for a high-end or custom-built home.

Quick Facts: Home Warranty of America

How We Picked The Top Home Warranty Companies Of 2025

Companies with the best home warranties in Texas respond quickly, partner with licensed local contractors, and actually follow through on their repair guarantees.

Here’s the criteria we used to build our list of the top home warranty companies in 2025. The companies on the list needed to meet at least 4 of 5 of these requirements in order to make the list.

Must cover critical systems and appliances

Texas homeowners face unique challenges due to the climate. Houston’s heat and humidity put a serious strain on air conditioning systems, plumbing, and electrical systems, which means warranties that skip these aren’t worth your time.

In fact, in a recent 2025 survey by Texas Homeowner Trends, 63% of respondents ranked air conditioning coverage as their top priority when choosing a home warranty in Texas.

Builders also care. They want home warranty companies that cover the systems and appliances they install to avoid post-sale arguments over repairs.

Must be priced for Texas homeowners

We only selected companies whose plans fall within the average home warranty cost range for Texas in 2025. That’s between $52 and $80 per month.

This range reflects pricing for the Houston area, which is one of the state’s most active homebuilding markets.

Plans that are too cheap often have low coverage limits. Plans that are too expensive may not offer enough value for what they charge.

Must have strong online reviews

We only considered companies with an average customer satisfaction rating of at least 4 out of 5 stars across sites like Trustpilot.

High scores show how the company handles real-world problems and home warranty service issues effectively.

Must offer fast, reliable service within a maximum of 48 hours

Texas homes can’t afford to wait for repair when the AC unit breaks down in the middle of summer.

Every company on our list offers quick service calls, a strong contractor network, and local availability for licensed repairs.

The Bottom Line

There’s no one-size-fits-all when it comes to home warranty coverage in Texas, and that’s exactly why we created this guide.

From dual AC unit coverage to low service fees and comprehensive plans with high coverage limits, each of the companies we reviewed brings something different to the table.

Here’s the short version:

Liberty Home Guard is our top pick for its flexibility, customer satisfaction, and coverage designed for Texas heat.
American Home Shield stands out for high HVAC caps and coverage for older homes with no maintenance records required.
And for those on a tighter budget or looking for niche protections, companies like Cinch, HomeServe, and First American still offer reliable service — even if they don’t hit every mark.

So which warranty fits your situation best?

Best For First-Time Homeowners: American Home Shield

First-time buyers often don’t know what could go wrong.

AHS offers peace of mind with broad coverage, no maintenance history requirements, and helpful tech features like 24/7 service requests and live video chat support.

Best For Budget-Conscious Homeowners: Cinch Home Services

Starting at just $35/month, Cinch offers solid protection with extras like rust coverage and a $500 homeowners insurance deductible reimbursement.

It’s a budget-friendly pick that still comes with a 180-day workmanship guarantee, which is one of the best in the business.

Best For Homeowners Who Want Total Coverage: Liberty Home Guard

With over 30 optional add-ons, dual AC unit coverage in the base plan, and a strong contractor network, Liberty is built for homeowners who want it all.

It’s the best choice for anyone building a custom home or looking to cover systems that most providers skip.

If you’re building a new home in the Houston area, choosing the right home warranty company is only part of the equation. You also need a builder who cares about long-term quality, not just closing day.

At Dunn & Stone Builders, we partner with trusted home warranty providers and build every home with longevity in mind.

Contact us today to talk about how we can help you bring your dream home vision to life.

Frequently Asked Questions

What Is The Best Home Warranty Company In Texas?

The best home warranty company in Texas is Liberty Home Guard. It offers fast service, strong customer satisfaction, and plans tailored to Texas homes, including dual AC coverage.

Which Home Warranty Providers Have The Highest Customer Satisfaction?

Liberty Home Guard and American Home Shield lead in customer satisfaction, with 4.5-star or higher ratings on review sites like Trustpilot and the Better Business Bureau.

What Does Home Warranty Coverage Typically Include?

Home warranty coverage usually includes major systems like HVAC, plumbing, and electrical, plus key appliances such as refrigerators, ovens, and washers.

Are All Home Warranty Plans Available In Texas?

No, not all home warranty plans are available in Texas. Only licensed Texas home warranty companies can offer coverage in the state.

Which Home Warranty Companies Offer The Best Repair Guarantee?

Cinch Home Services offers the best repair guarantee, with a 180-day workmanship guarantee that’s six times longer than the industry standard.

How Do I Choose Between Different Home Warranty Providers?

Look for providers with fast service times, high customer satisfaction, competitive pricing, and strong coverage for systems common in Texas homes.

What Should I Look For In Home Warranty Plans For Texas?

Look for home warranty plans that include HVAC, plumbing, and electrical systems, offer reasonable monthly rates, and have a solid contractor network for quick repairs.