When you are in the market for a new home, one genre you don’t want to overlook is new home construction. Increased regulations and building codes are enabling homes to be made of better quality products, boast higher energy efficiency ratings, and have superior safety standards. As with all industries, the product improves constantly, but there are additional reasons why you should also consider a newly built home.
First and foremost, the housing inventory of resale homes remains relatively low. Some buyers may be in an endless search, waiting for the perfect home to hit the market, only to enter into a multiple-bid offer. Rather than waiting for something just right to appear, construction offers the ability of creating new inventory and new neighborhoods. Often times a new development will not be sold all at once, but in phases to allow for continual inventory. If one neighborhood sells out, the developer can be a resource and let you know when and where the next one begins.
The average homebuyer currently desires a home with a large and open common area. Great rooms, large kitchen islands, long-spanning ceiling joists, tall or vaulted ceilings, and many other modern building features create this type of open floor plan. Some older homes can be retrofitted accordingly but at a potentially high renovation cost. For example, a fractionalized floor plan may allow certain walls to come down but not enough to create the same flow as contemporary construction.
Creating an open floor plan is just one of the many customizations a purchaser can make while buying new. You could also select granite countertops, install hardwood floors in every room, select the size of your bedrooms, and design added space for an extra large ceramic shower, maybe even decide where you want your electrical outlets. The power to decide is possibly the greatest reason to consider new construction.
There is a small price premium that comes along with a newly built home. A common misconception is that a new home is out of someone’s price range. If you research carefully, you might be surprised to find that there are new construction projects competitively priced with resale homes.
Keep in mind that slightly higher costs should be expected, but for good reason. New homes are built to higher standards with increased building material costs on a cyclical basis. Typically, new building expenses are affected by changes to the building code every three years. Although it can be more difficult to negotiate price on new construction, builders will often concede added features/upgrades as incentive. Be mindful of the allure of buyer-paid upgrades, too. It’s easy to get caught up in the process of building your dream home without keeping your original budget in mind.
The additional cost of new home construction also pays for peace of mind. Just like buying a new car, there’s a sense of confidence that a new home will perform as it should. Purchasers do not have to worry about hidden years of neglect or deferred maintenance. Buyers will know exactly how old the following items are: roof, water heater, air conditioner, carpet, plumbing, etc. Most states require a standard builder’s warranty on many of the large items for the first year, and some stand behind their product for much longer than that. There’s always some home maintenance required, but in most cases you can live worry free of large expenses anywhere from five- to ten-years at a minimum.
Buying a new home is a big decision, which is why it is important to consider all of your possible options. There are some advantages to resale properties — they are easy to view, potentially fast to close, and you’ll know exactly what you’re getting before you buy. However, keep in mind the possibility of a newly built home and the customization and low maintenance it offers. For some, there’s nothing better than something nice, shiny, and new!