For some home buyers, new construction is the only way to go. For others, it's a great solution to our current low-inventory market. Let's take a look at the pros and cons of building your next home rather than buying an existing property.
ADVANTAGES
No concern about old and outdated systems One of the biggest fears for homebuyers is that they are afraid of buying someone else's problems. Older systems or systems that have not been properly maintained, can make it intimidating to purchase an older home. New construction ensures that everything is brand new, giving you several years of low-maintenance living and a clearer idea of the timeline for maintaining and replacing the systems in the home. No home is completely maintenance-free, but you're less likely to have an unexpected maintenance expenses in your first few years of living in the home. Additionally, new construction homes are built with the latest construction materials and building practices. This can mean lower monthly utility bills due to energy-efficiency. Customization In a preowned home, you'll probably find flooring you want to replace, wallpaper you want to strip, a bathroom that needs updating, or kitchen cabinets you want to tear out. If you work with a home builder on the construction of your home, you can select finishes from the beginning from flooring and paint colors for each room to countertops and light fixtures. You will also save time because you won’t have to shop around for a house that fits your ideal design. With several floor plan choices, you can select a home that works for you and your family's lifestyle. A solution to low inventory Low inventory and record low interest rates have created a low inventory real estate market with homes going under contract within hours with multiple offers above asking price. With a new construction home, you can avoid all of this. As long as there is a lot available in your chosen community, you'll get your house. Your builder will be able to give you an expected timeline for your home's completion. DISADVANTAGES
Lack of mature landscaping Many new construction communities feature little or no mature landscaping. If tree-lined streets are important to you but you also want new construction, consider buying a lot in an existing, older neighborhood and hiring a custom builder rather than buying in a new community. All builders are not the same The experience of building a new home as well as the options available will vary based on the builder you choose. It's important to do your research to be certain you're making the right choice. Look at other homes they've completed and speak with previous clients. You shouldn't have a problem finding a fantastic builder for your home, but you do need to do the work to make sure that you're choosing a builder that is right for you. Less room for negotiation With new construction, the costs are fairly standard, so you'll have very little bargaining power when it comes to the overall cost of the home. You may be able to negotiate on some of the extras and upgrades, but generally speaking, it costs what it costs. Hidden Costs It's important to make sure you know what is included and what you'll have to take care of yourself, such as fencing, window treatments, and certain appliances such as a washer and dryer. In order to not be surprised by these when it's time to move in, make sure you're clear on what's included and what is not. Your Realtor is a wonderful resource when it comes to the process of buying a new construction home. You’ll want an agent’s representation throughout the process, especially as you consider financing scenarios, builder contracts, and other aspects of the transaction.