How do you sell an existing home when you’re competing with new construction in Sioux Falls?

Lean on the two things resale homes still do better than new builds: they sell faster and they cost less. Through August 2026, existing homes across the Sioux Empire sold at a median of about $320,000 in roughly 81 days, while new construction carried a $386,900 median and took about 161 days to sell (Realtor Association of the Sioux Empire). Price your home to the most recent comparable resale sales, make it genuinely move-in ready, and position the advantages a half-built subdivision can’t match yet — established location, a finished lot, and a quicker close.

By Brent Baker | September 10, 2026

Right now, a buyer shopping in Sioux Falls has more brand-new homes to choose from than they’ve had in years. Builders are opening subdivisions on nearly every edge of town, and the marketing is hard to ignore — fresh finishes, builder warranties, and that nobody-has-lived-here-yet appeal.

If you’re getting ready to list an existing home, that can feel like a problem. It isn’t. The numbers say your resale home has two clear advantages a new build can’t match this year. Price and prepare around them, and you win.

Here’s what I walk every seller through when they ask me about this.

Your two real advantages: speed and price

Start with the gap that matters most to buyers — money. Through August 2026, existing homes in the Sioux Empire sold at a median of about $320,000, while new construction carried a median of $386,900 (Realtor Association of the Sioux Empire). That’s roughly a $67,000 difference. Most buyers in this market are working somewhere in the $250,000 to $400,000 range, and at that budget a resale home simply gets them more house, or a better location, than a new build.

Then there’s speed. New construction in the metro averaged 161 days on the market this summer. Existing homes averaged 81 — less than half the wait.

That difference isn’t an accident. A builder sells from a fixed run of inventory at a fixed price and rarely discounts early, because cutting one home’s price resets the value of every other home in the community. You don’t have that constraint. You can read the market in real time and price to sell, which is exactly why well-positioned resale homes are moving quicker.

Inventory backs you up, too. The metro had about 1,313 active listings in August, down 26% year over year, at a 3.7-month supply (Realtor Association of the Sioux Empire). That’s a tight, seller-leaning market. A correctly priced existing home is not fighting through a glut — it stands out.

Price against the right comps, not the builder’s sticker

The most common mistake I see is a seller anchoring to the new subdivision down the road. “If the builder is asking $415,000, my updated home should be close.” It shouldn’t. Builder pricing reflects new materials, warranties, and a long construction timeline baked into the number — it is not your comparable.

Price instead off the last 60 to 90 days of comparable resale sales near you: similar square footage, similar age, similar lot. In a market where sellers received about 97.3% of list price in August, a home priced to recent comps still sells at close to asking. A home priced to the builder’s dream number sits — and a home that sits eventually looks like the problem in the room.

Be careful with automated estimates here. A Zestimate or county assessed value is a starting guess, not a strategy, and both can miss the local resale picture by tens of thousands of dollars. Your actual number depends on your home’s condition, location, and timing — which is where a real comparative market analysis comes in. That’s the first thing I run before we ever talk list price, and it’s the same groundwork behind my practical guide to selling a home in Sioux Falls.

Make the choice easy: condition and positioning

Buyers lean toward new construction for one emotional reason above all — everything is done, and nothing is their problem on day one. You neutralize that advantage by making your home feel just as move-in ready.

A few things carry the most weight:

• Deal with deferred maintenance before you list. Peeling caulk, a slow drain, a furnace that’s overdue for service — small issues make a buyer wonder what else is wrong. Fixing them removes the excuse to default to new.
• Consider a pre-listing inspection. Knowing what a buyer’s inspector will find lets you fix it, price for it, or disclose it on your terms instead of renegotiating mid-deal.
• Freshen the finishes buyers notice first. Neutral paint, clean flooring, and updated light fixtures read as “cared for” and close the perceived gap with a builder’s model home for a fraction of the cost.
• Stage for move-in readiness, not just tidiness. The goal is for a buyer to picture living there this month, not next spring when the subdivision phase finishes.

Then say out loud what a new build can’t offer yet. Established trees and a mature, finished lot. No waiting on a construction schedule or a builder’s punch list. Existing landscaping, fencing, window coverings, and appliances already in place — all of which a new-construction buyer pays extra to add later. A known, settled part of town rather than a subdivision that’s still filling in. If location is part of your pitch, my breakdown of Sioux Falls neighborhoods and what to weigh when choosing one is a useful companion for your buyers.

Know your real net before you list

Competing on price only works if you know what you’ll actually walk away with. In South Dakota, sellers typically cover the Real Estate Transfer Fee — $1.00 for every $1,000 of sale price, or about $330 on a $330,000 home — along with agent commissions and title company charges. Title companies handle the majority of closings here; a few are done by attorneys.

You’ll also complete South Dakota’s Seller’s Property Condition Disclosure Statement, which the law requires. It covers structure, roof, water intrusion, systems, septic and well where applicable, and hazards like radon and methamphetamine production. Disclose known issues fully and honestly — failing to disclose a material defect can let a buyer cancel or sue after closing, and in some cases counts as fraud under South Dakota law. (If your property is across the line in Minnesota, the disclosure package is different and includes separate well, septic, methamphetamine, and farmed-deer/chronic wasting disease disclosures — worth confirming early.)

Your specific net comes down to your price, your payoff, and your closing date. That’s a ten-minute conversation, and it’s one worth having before you commit to a number.

Frequently Asked Questions

Is it harder to sell an existing home in Sioux Falls with so much new construction?

Not in this market. Existing homes are selling faster than new builds — about 81 days versus 161 in August 2026 — and at a lower price point most buyers can reach. New supply gives buyers options, but a well-priced, move-in-ready resale home competes from a position of strength.

Should I lower my price to compete with new construction?

Usually no — you should price to recent comparable resale sales, not undercut the builder. Sellers received about 97.3% of list price in August, so a home priced to the right comps sells near asking. Cutting price to chase a builder’s number often leaves money on the table.

What do buyers give up when they choose new construction over a resale home?

They typically pay more — a roughly $67,000 higher median in the Sioux Empire — and wait longer to close around a construction timeline. They also start with bare lots and unfinished landscaping, and often add fencing, window coverings, and appliances at their own expense.

How much are seller closing costs in South Dakota?

Expect the state Real Estate Transfer Fee of $1.00 per $1,000 of sale price (about $330 on a $330,000 home), plus agent commissions and title charges. Your exact figure depends on your sale price, loan payoff, and negotiated terms, so a personalized net sheet is the only reliable way to know.

Do I still have to complete a disclosure if my home is older?

Yes. South Dakota’s Seller’s Property Condition Disclosure Statement is required regardless of the home’s age, and you must disclose known material defects. Full, honest disclosure protects you from a buyer canceling or pursuing a claim after closing.

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New construction gets the attention right now, but the market data gives resale sellers the edge on the two things buyers care about most: price and speed. Get your home priced to real comps, make it move-in ready, and name the advantages a new build can’t offer yet — and yours becomes the easy choice.

If you’re weighing a sale against all the new construction going up around town, I’m happy to run your numbers and build a pricing plan for your specific home. Reach out anytime.

About Brent Baker

Brent Baker is a REALTOR® licensed in South Dakota and Minnesota who helps buyers and sellers navigate residential, rural, and land transactions with confidence. Raised on a farm in southwest Minnesota, he brings a strong work ethic, honest guidance, and a calm, straightforward approach to every client relationship. Brent is committed to helping people make informed decisions while building lasting relationships founded on integrity, professionalism, and trust.