When searching for a home, you don’t want to skip over new builds as an option. Right now, there are more newly built homes
to choose from than there would normally be in the market. And those
added choices come with some pretty incredible benefits. Talking to your
agent is the best way to see if this type of home makes sense for you.
Here’s
a quick rundown of some things your agent will walk you through –
including a few of the top perks of buying a newly built home today and
some potential things you’ll want to think about before you ink any
contracts.
The Perks of Buying a Newly Built Home
Customization Options:
Many builders allow buyers to choose finishes, layouts, and upgrades so
that you can personalize your home to your unique sense of style. This
is obviously more of a draw if the home is still under construction, but
sometimes you can have a builder agree to some tweaks even after it’s
completed.
Less Maintenance and Fewer Repairs:
Everything from the roof to the appliances is brand new, which should
save you on any upfront maintenance or repair costs — for at least the
first few years. Many builders also offer warranties on things like
structural components and major systems, to give you extra peace of
mind. And not having to worry about this sort of thing is a big perk
when everything feels so expensive right now.
Eco-Friendly and Energy-Efficient Features:
With stricter building codes, newly built homes tend to be more
environmentally friendly. This can include energy-efficient upgrades
like smart thermostats and high-efficiency HVAC systems or eco-friendly
tech. And all of these features can save you money on your future energy
bills – again a welcome relief while inflation is stubbornly high.
Builder Incentives: Some
builders are also offering incentives to homebuyers. While this will
vary by builder, it could include rate buy-downs or other ways to offset
today’s affordability challenges. As Bankrate says:
“Some builders offer financial incentives, including flexible financing options, to encourage buyers to purchase. These incentives — especially if they get the buyer a lower interest rate — could make a new-construction home more affordable in the long run.”
Sally's Additional Notes:
Contingencies: Builders will often accept a "contingency" (i.e. buying the new home is contingent upon selling your current home) whereas resale home sellers may not.
Other Considerations When Buying a Newly Built Home
On the other side of the coin, there are some things that you’ll want to at least consider before making your choice.
Longer Timelines:
If you’re purchasing a home that’s still under construction, you may
have to wait several months — or longer — before you can move in. As Realtor.com puts it:
“For homebuyers who have a short time frame to move into a new home, buying new construction could be challenging if the house isn’t built yet. This is not always the case, since a community may have some quick move-in homes or spec homes that are already complete (or nearly so) and ready for a buyer to move in. But if not, a buyer may have to wait.”
Potential Price Changes:
Keep an eye on costs, too. It’s easy to go over budget if you keep
tacking on upgrades or add-ons as you customize your build. At the same
time, building materials, like lumber, can be affected by the economy,
inflation, and changing trade policies. And unfortunately, if the cost
of supplies climbs, builders will pass at least some of that increase on
to people like you. As HousingWire explains:
“Upgrades and add-ons, unforeseen delays due to weather, supply chain issues or labor shortages, and expenses like landscaping and fencing not included in the builder’s cost can significantly affect the final price.”
Sally's Additional Notes:
Unexpected Expenses: Many new construction options do NOT include back yard landscaping, certain appliances (like washer & dryer) or window coverings. This could add many tens of thousands of dollars to the cost of your home. (Guess what?! Your REALTOR may be able to negotiate these items into your contract with the builder).
Inspection Issues: Many new construction buyers don't think they need a home inspection because...it's brand new. Think again. Builders (and their contractors) are well known for cutting corners wherever they can. A basic home inspection PRIOR to closing is a good idea to identify any issues that need to be fixed.
Hire a REALTOR as your Buyer's Agent: Did you know you are entitled to use your own agent when buying a new home? The builder's sales rep works for the builder, not YOU. You need someone in your court who can negotiated things like price, upgrades, financial incentives, etc. In addition we can keep an eye on the construction process and have builder address any issues BEFORE you close.
Bottom Line
New builds can be a great choice today, but you want to be sure you have all the information you need to make an informed decision on such a big purchase. That’s where my expertise and experience is extra important.
Sally Heldman
Broker Owner
Metro Brokers / Heldman Real Estate
303.475.4508 CELL
sally@sallyheldman.com