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New Construction: Is It Right For Me?

By
Real Estate Technology with New England Home Buyers

Whether you’re a first-time homebuyer or not, if you’ve been on the market looking for your dream home for months and are still coming up empty, it can be frustrating. Before you solidify your resolve to go back and just keep looking, you might want to consider learning about new construction.
Of course, “new construction” sounds great at first glance — you’ll be able to build your dream home from the ground up and own a house that’s never been lived in before. But new construction isn’t all rainbows and sunshine — in fact, depending on your needs, buying an existing home might be what’s right for you.
Before you decide whether to buy new construction or an existing home, consider the pros and cons of buying new construction.

Buying New Construction: Pros And Cons

First, let’s learn what exactly new construction means. According to Redfin.com, a new construction home is one that has not been previously occupied. It’s a home that you build from the ground up or one that you have some say in the floor plan of. If you’re having trouble looking for a home that fits your needs and lifestyle on the market, a new construction home might be right for you.

Pros

  • Personalization: With a new construction home, you have a say in everything — from the appliances, paint colors, to choosing between tiles or hardwood for your bathroom floor. You can customize your home to suit your needs and preferences as much as the code and your budget allow.
  • Energy Efficiency: You might think that outdated appliances or technology don’t matter as long as they’re functioning correctly, but you’ll notice the difference once the utility bill comes. New construction homes feature the latest technology and are more energy-efficient, which means lesser maintenance and lower utility cost.
  • Low Maintenance: Since everything is new and you’ll be the first to own the home, you won’t have to worry about finding any unpleasant surprises left behind by the previous owner. What’s more, new appliances often come with a manufacturer’s warranty of at least a year. In short, you won’t have to worry about any repairs for quite a while.

Cons

  • Waiting: If you need to move into your new home soon, building or buying new construction might not be for you. According to realtor.com, it typically takes three to six months to build a house, depending on several factors.
  • Design Limitations: It’s common for builders to stick to designs that appeal to most homebuyers. You’ll be able to customize your home to an extent, but don’t be surprised if the final output looks similar to your neighbor’s.
  • Cost: As opposed to buying an existing home on the market, there isn’t much room for negotiation when building or buying new construction. If you decide to go with new construction, keep in mind that you will have to pay for the down payment, upgrades, and closing costs, aside from the cost of the build itself.

How Much Does It Cost?

If you’ve gotten this far, you might be thinking, “That sounds great and all, but how much will it actually cost me?” According to Forbes, new construction homes can cost up to 20% more than a similar existing home.
As of September 2020, according to the U.S. Census Bureau and Department of Housing and Urban Development, the median sale price of a new construction home is $326,000. The average sale price is even higher, at $405,400.
New construction homes are usually more expensive than existing properties due to the use of new materials and other factors.
To get an even clearer idea of how much you’ll need to build a new home, depending on where you want to build your home, you can use Home Advisor’s calculator.

 

Now that you know the pros and cons of buying new construction, it’s time for you to decide whether or not a new home is right for you. To put it simply, if you can wait for construction to finish, handle the design limitations, and believe that the pros justify the higher cost, then buying new construction might just be right for you.

 

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Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Shad!

If you can wait for construction to finish, handle the design limitations, and believe that the pros justify the higher cost, then buying new construction might just be right for you.

Nov 24, 2020 04:16 AM
Shad Elia

Thank you for reading!

Dec 08, 2020 05:51 AM