In today’s market, many buyers are turning to new home communities in order to avoid the bidding wars, price increases, and having to fall in love with a home, just to loose it. Have you considered purchasing new?
Here are some of the most common pros and cons of new construction:
Pros
Everything is brand-new. A big perk of buying new construction is that no one has touched a single thing in the house — aside from the contractors, of course. The house is built with modern materials, new appliances and fixtures are installed, and the surfaces are in pristine condition. Because everything is brand new, you’re less likely to be burdened with surprise repairs. If there’s a problem in the first year, most builders offer a free home warranty that will cover the cost to fix almost anything.
No bidding wars. It’s first come, first served. When purchasing a new construction home you can walk in their office, sign a contract, and as long as you abide by the language in the contract, the home will be yours! You will avoid competing against 20-30 other offers that may take the home’s final cost to 20-30% over the list price.
New construction also means the house and everything in it will be more energy-efficient. There will be modern windows installed in the home, better insulation, more efficient heating and cooling, and even appliances that use less electricity and water.
New construction means the building is built to today’s standards. People marvel at the craftsmanship and detail of older homes… but remove the sheetrock to inspect the electrical work or crawl under the house to inspect the plumbing, and you’re likely to find some issues. Sadly, the problems you find are going to be pretty costly — at least a couple thousand dollars per repair.
You can personalize the house to suit your tastes. New construction allows you to choose the finishes that you want, therefore eliminating the added cost you’d have to pay to renovate.
Cons
Not all builders are created equal. You have to vet the builders! As with everything else in this world, if you want to be sure that you’re hiring someone who is going to their job and do it well, you need to vet the people that you’ll be working with. If you don’t do your research, you could wind up with a newly constructed house that is riddled with problems, code violations, and more, so do research on any builders you interview. However, as a real estate agent it is our job to know the builders and their reputation.
Less room for negotiation. While the resale home down the street may go for under the list price if there are no interested parties, with a new construction home you will not be able to negotiate the base price of the home. However, the right agent may be able to help you negotiate for the free upgrades you want, or for better financial incentives.
Personalization can get expensive. As you’re looking through a model home, you have to keep in mind that it’s going to have the best features, fixtures, and appliances the builder has to offer. To have all of those upgrades in your home could end up increasing the price tag by $100,000 or more! The design center is the profit maker for vendors, so make sure to choose upgrades that will also add value to your home.
Options are not endless. You maybe able to pick out the flooring, color of cabinets, and what fixtures you would like, you may not be able to add that fireplace to the living room, or put in that skylight in the primary bathroom like you’ve always wanted.
Move-in date isn’t guaranteed. On average, building a home from start to finish will take approximately 10 months, but some things can hold up production, such as material shortage, bad weather, or issues with the crew. All of these things can stall your move-in date, which is problematic if you’re counting on moving within a particular timeframe.
If you are interested in discussing purchasing a new home I’d love to help answer any questions you may have! I have been working hard on getting to know the local new construction market and builders. Reach out anytime!