To build or not to build, that is the question! The great debate for homebuyers these days is whether they want to purchase a home that is empty or one that has been previously occupied. New construction homes are houses that have never been lived in and have been built in an empty lot and from the ground up. Newly constructed homes are popping up from suburban neighborhoods to custom designed houses in the woods. These homes are becoming a more popular choice as buyers assess their options. Here’s our take on some pros and cons of factors involved in buying a new construction home.
Everything is New
Pro: Many new construction homes are being designed and built with the most energy-efficient materials on the market. With “green living” as a popular choice to today’s consumers, a new construction home can be very appealing. With everything about the newly constructed home being fresh, homeowners will be able to keep an accurate log of improvements and maintenance from square one. Many homeowners will appreciate knowing the date and yield of the mechanics and treatments in and on their home.
Con: When a buyer is choosing a lot or a newly constructed home, they are unable to benefit from the character of a previously owned home. Many buyers want the charm that comes with a story hemmed in the walls of an older home. Unless it is a custom-designed house, many newly constructed homes can look quite similar in design.
Renovations and Resale
Pro: When it comes time for the new construction homebuyer to sell the newly constructed home for the first time, many updates have already been designed into the making of the house. Even with a few years under its belt, a newly constructed home can have a great resale value as only one owner has lived in it.
Con: Although many buyers think that it would be cheaper to do self-improvements to a previously owned home, many times the profit from those improvements will not be the same as expected. In the long run, the money put into home improvements on a previously owned home may not entirely show up in the resale.
Pro: When buyers are looking at previously owned homes that are for sale, it is inevitable that one they are considering will slip out from under their nose. When buying a new construction home, one can grab the lot or house being constructed and be secured with the house by contract. This allows the buyer to be able to make a personal timeline knowing that the house being built will be theirs eventually.
Con: Sometimes with a new construction home, the builder needs to get the building done quickly because they have lots and property to fill up and pay off. Although personal timelines can be more adaptable with new construction homes, builders are on their own timeline and this could cause potential problems to occur with rushing workers. This is one reason why it is beneficial to have a Realtor who can make sure checklists are completed and no problems are left unattended.
Pro: New construction homes may have options for the buyers to choose from while the building process proceeds. As opposed to previously owned homes, some new construction homes can be bought at a lot level and a buyer can follow the entire process of building. Paint colors, hardware, windows and other amenities could be personally chosen and customized by the buyers depending on the building company. Obviously with a custom-designed home, a buyer can help pick floor plans and many other customizations.
Con: Customization is where a lot of the hidden costs appear. Landscape, decks and even heated floors all sound great to the consumer but often cost a pretty penny. A Realtor can help with hidden cost navigation.
Whether buying a new construction home or a previously owned home, working with a Realtor can come of great benefit, especially for first time homebuyers. We hope you take this information and discover the best possible situation during your home buying process. We would love feedback on this subject as new construction homes are becoming a common choice in recent years. For those who are not convinced on new construction homes, check out our recent post about buying a historic home! Onward and Upward!
If you're considering buying a new construction home, be sure to also read these articles:
Tips for Buying a New Construction Home by Paul Sian
Is It Better To Buy a New Home Or An Older Home? by Debbie Drummond
11 New Construction Home Buying Tips: How to Buy a New House by Ryan Fitzgerald