Why buy a new construction home?

Why buy a new construction home?  Consider this:  there is much uncertainty when you search exclusively for resale homes. The baseline price is unknown- meaning what price will the seller take? What will the inspector find? Might the seller fix anything? How about deferred maintenance issues that may surface after you move in? How much will you need to put into it (renovations) so it feels like yours?

But with a new construction home you get:
• Brand new everything!
• Finishes you want (fixtures, paint colors, etc.)
• Design that fits your lifestyle
• Maximum energy efficiency
• Everything built to current code
• An extended warranty (equals peace of mind)

Buyer Beware:

When you shop for a new construction home be aware that the friendly person in the model home works for and represents the builder. You are on your own. But why not bring a Realtor to represent you? A Realtor is your advocate for making sure you stay close to budget, another set of eyes during construction and walk-through, and can make sure all aspects of the sales contract have been met.

Do you have the financial ability to buy?

I must remind you before we go on that before purchasing any home, whether new construction or not, don’t forget to speak to a lender to know how much house you can afford, or if you can afford one at all! (unless you are flush with cash).  Learn more about getting pre-qualified for a loan here.

Don’t go alone!

It’s important to bring your Realtor to your first visit to the model home of any community. That way the salesperson knows you are a qualified prospect. I bet you are thinking it will end up costing you more to buy a house because you brought your Realtor with you. This is not true! According to The National Association of Realtors, Realtors sell around 67% of new homes. I’ve talked to some local salespeople representing large builders and they say that number is closer to 80% or even 90%. Builders realize that Realtors are their largest source for qualified buyers. They welcome them, and they don’t charge you more for being represented. The cost of paying a buyer’s agent a commission to represent you is built into their marketing fee and not the cost of the home. Builders want buyers. Realtors are their number one source. It’s a win-win for all parties.

Shopping Strategy:

When shopping for a new home you will get the best deals on an “inventory” or “ready-to-move-in” home versus a custom home starting from bare ground. Builders offer the best incentives on these homes like paying a certain amount of your closing costs, throwing in free blinds, refrigerator, or even a patio and firepit. If you want to build from the ground-up then go for it. Just be careful as you can easily blow through the budget due to upgrades. Your Realtor can help you stay on track. Your builder makes a hefty profit on upgrades. But you don’t want to become the most expensive property in the community. This can hurt you down the road should you decide to sell.

Low-impact Cons:

It may take a while for your lawn and trees to become established and for the construction dust to settle in your new home neighborhood. But from a value perspective, I think you’ll find it’s worth it.

Now you know why and how to buy new construction!  You can search for a new home here.