The Pros and Cons of Buying New Construction
Here are a few things to keep in mind if you’re set on buying a new construction home.
When considering buying new construction, there are certain pros and cons you need to weigh before deciding if this option is best for you.
As far as pros go, new construction homes are brand new and have never been lived in. And if you buy the home at the beginning of the neighborhood’s development, it will also see some appreciation. Additionally, there are some wonderful builder warranties you can take advantage of.
As for the cons, you might have to deal with future construction going on, which means you might be woken up at 7 a.m. some Saturday morning to the sound of a hammer being pounded. Also, if you don’t buy into a wonderful neighborhood, the home could depreciate. That’s a risk you take with buying a home in general, though.
If you’re set on buying a new construction home, my first piece of advice is to focus on neighborhoods as well as the homes themselves. When homes are being sent to you during your home search, it’s easy to get caught up in their details. But what if you come across a home you love only to find out that you don’t love the surrounding neighborhood?
During your home search, focus on the neighborhoods first, then focus on the home’s lot, and then focus on the floor plan and other specifications and upgrades.
"Work with an agent who can walk you through the steps of buying new construction."
Also, don’t forget to ask which warranties go with the home. As I said, the builder warranties of new construction homes are wonderful. Most builders will offer a one-year workmanship home warranty starting from the time you close on the home. Others will extend beyond that and offer a two-year, five-year, or even 10-year structural warranty.
I also want to reiterate the benefits of appreciation. When buying a new construction home during the beginning of the neighborhood, you’ll see that home’s value increase because most builders will add on to the base price or add lot premiums as they continue to build and sell quickly.
You can expect the new construction home buying process to be a little lengthy, and you’ll likely deal with a lot of one-on-one meetings and walk-throughs, so make sure you work with an agent who can watch out for your best interests and walk you through all of the steps. I worked as a new home construction agent for three-and-a-half years before I switched over to a general brokerage, and many of my team members have also worked in new construction, so we have a lot of experience with this process.
If you’d like to know more about buying new construction or you have any other real estate needs I can assist you with, don’t hesitate to give me a call, send me an email, or just text “LISTING” to 555888. I’d love to speak with you.