New construction homes can be a great option for buyers, especially those who are struggling to find pre-built homes in a hot real estate market. Every housing option has its benefits and drawbacks, though. If you’re considering a newly built home, you should be aware of the pros and cons. New construction homes offer some fantastic benefits for homeowners.
Pros:
Here are some of the key advantages of buying a newly built home:
Customizable
In many cases, the buyers have a great deal of control over the final results of the new construction home. You can choose the paint colors, appliances, flooring, trim, countertops, and other details. If you have a specific vision for exactly what you want your home to look like, a new construction may be your best way to achieve it.
Clean and Sanitary
Some buyers seek out a new construction home because they want the cleanest and most sanitary option. When you purchase a pre-owned home, you never know what you might find. While you could hire professional cleaners to take care of a pre-owned home, many homeowners have peace of mind knowing that their new construction has never been exposed to dirt or contaminants.
Fewer Repairs
When you buy a pre-owned home, you should expect to make at least a few repairs and upgrades in the first year. Appliances break, systems get worn out, and cosmetic details may be dated. In a new construction home, everything should be brand new and in great condition. It’s always helpful to have an emergency fund in case of unexpected repairs, but you’re far less likely to run into maintenance issues with a new construction.
Lower Maintenance and Utility Costs
New appliances and systems tend to last longer and be more energy efficient than older ones. In a new construction home, everything is modern. You shouldn’t have to replace anything for a long time, and your utility bills should be lower. For instance, a modern and energy-efficient HVAC system could save you hundreds of dollars over the course of a year. You could request other efficient upgrades as well, such as LED lights, energy-efficient windows, or dual-flush toilets.
Warranty
Many new construction homes come with a warranty, which will be incredibly helpful if you do run into maintenance issues. Warranties typically cover the permanent structures in the home, such as the plumbing, flooring, and electrical work. If something breaks under your warranty, the builder will cover the expense.
Increases in Value
New constructions usually cost more than pre-owned homes initially. However, they consistently hold their value and usually go up in value once all the homes in the community are complete. Buyers who purchase their home in the early stages of the community being built will see the biggest increase.
Cons:
While there are plenty of benefits to buying a new construction, there are also some downsides. Here are some disadvantages to be aware of when considering a new construction:
Higher Pricing
New constructions cost more on average than pre-owned homes. They’re more expensive in listing price and in price by square foot. Additionally, any extra upgrades you request will further increase the price. You have to decide whether the benefits of a new construction are worth paying the extra money. If you’re on a tight budget, though, a newly built home may not be financially accessible.
Longer Timeline
When you purchase a pre-owned home, you’ll probably move in within a month or two of making an offer. Buying a new construction is a much lengthier process as a home can take six months or longer to build. You might get lucky and find a house that’s nearly completed, but many buyers have to wait for months for their new home to be ready. If you’re selling your current home and need to move soon, buying a new construction may be difficult.
Sparse Community at First
New constructions are often built in big communities. However, if you’re one of the first to move in, you’ll have to wait a while for the community to flourish. Some homeowners love living in a sparsely populated neighborhood, but others can’t wait to have neighbors. The landscaping may be very minimal when you first move in, too. You probably won’t see trees and shrubs mature for another couple of years.
Construction Outside Your Home
When you buy a newly built home, you should prepare for your neighborhood to be under construction. Unless you’re one of the last buyers to enter the community, there will probably be homes all around you that are still being built. The noise, traffic, and dirt from construction can be tiresome.
Less Negotiating Power
Prices on new homes are not nearly as negotiable as prices on pre-owned homes. You’re working with a builder who has a clear and strict price in mind, not a homeowner who may be open to negotiating. Making an offer below the listing price is perfectly normal for a pre-owned home, but it probably won’t work for a new construction.
New construction homes have plenty of advantages and disadvantages. You should expect to pay a higher price and wait a while for the community to be complete. The flexibility and reliability of a new construction may be worth the extra cost and longer timeline, though. To decide whether or not to purchase a new construction, you have to consider your own values and priorities.