As activity on the housing market slows during the winter, I have seen many buyers look towards new construction as a way to purchase a home. It can feel frustrating to have seen everything on the market in your ideal location and not find what you need. Buying a new construction house can be a way to create what you need in a home, but it doesn’t come without its drawbacks too. Let’s take a look at the pros and cons of buying a new construction house.
Pros of Buying a new construction house
Less Maintenance
Every system in the home is new; the heating and cooling, electrical, and water systems along with the roof are all in excellent shape. This means that aside from yearly maintenance, you won’t have to invest much time or money into the upkeep. Even though everything is new, it is still important to have a home inspection. Home inspectors will test the systems and examine the home for any other safety concerns. Any issues found can be addressed by the home builder before you move into your new construction house.
Energy Efficiency
The differences in energy efficiency between a home built even just twenty years ago and today are huge. Advances in technology coupled with stricter building codes means that homes are more efficient. Insulation, windows, and new trims and seals around doors and windows will help to keep the warm (or cool) air from inside from escaping. New appliances also are more energy efficient. This means lower utility bills for you in a world of ever increasing cost.
Warranties
Buying a new construction home means that you will receive a builder warranty. This warranty, although different for every builder or location, can cover any unexpected damage or needed repairs.
No Remodeling Needed
Unlike purchasing a pre-existing home that may have some larger changes you want to make, buying a new construction house allows you to select a floor plan that fits your needs. While you might add some paint to walls, in a new construction home, you will not be tearing down walls.
Customization
Every home builder is different. Some home builders have a limited menu of options for buyers to customize while others let buyers personalize many features. If you are considering buying a new construction house, then ask about what customization the builder has available. In some cases you can select flooring color, cabinets, paint color, and light fixtures. Other builders may let buyers change around the floor plan, add additional square feet, or design areas specifically for the buyer. You can build a home on acreage in a rural area or in a neighborhood.
Cons of buying a new construction home
Higher Expense
Buying a new construction home can be more expensive than purchasing a pre-existing home. There are lot preparation fees and additional county/town fees that you don’t incur with a pre-existing home. However, these costs are all dependent on where you live, so you can always ask a REALTOR® to share some information about the area, find comparable homes, and talk over the numbers of how much more a new construction home would be.
Timeline
It takes time to build a home. Weather can delay the process along with waiting for permits. Most home builders will provide you with a soft completion date because they know that delays can happen. If you are not in the position of being able to wait for the home to be completed, then buying a new construction house may be a challenge.
Lack of Landscaping
When a section of new homes went up in our neighborhood, the builder ripped out every single tree of a wooded section. (At 4:30 in the morning we awoke to our entire house shaking…can you tell I’m still not thrilled about that?) New construction homes in neighborhoods can lack the alluring mature landscaping of established homes. Tall trees that provide shade and privacy take time to grow.
No negotiating
When you make an offer on a pre-existing home, your REALTOR® can negotiate the price with the sellers. Most builders have a “take it or leave it” approach. While your customization of the home can drive up the list price, there is not negotiating on the base price of the home.
Even when you are going with new construction, having a real estate agent working with you is a great idea. Although the home builders’ employees are friendly and accommodating, at the end of the day, they work for the builder and not for buyers. Having a REALTOR® who represents your best interests and can help you look over the contract, point out any concerns, answer questions you’ve got, help you schedule and be present at inspections, and guide you through the home buying process is important.
Whether you think new construction is for you or you prefer looking at pre-existing homes, I am here to help!
