Orlando Real Estate Spotlight: The Benefits of Buying a New Construction Home.
It’s no secret that the real estate market in Central Florida is booming. After a brief slump last March, not even the ongoing COVID-19 pandemic can stop the market from appreciating at a rate of at least 7% year-on-year.
This has led to something of a predicament: We’re rapidly approaching a housing stock shortage, with homes often selling above their asking price, as buyers attempt to out-bid the completion to secure their dream property.
This situation hasn’t gone unnoticed by developers: New builds are springing up across the state in a bid to cash in whilst demand remains strong.
Is a New Construction Right For You?
In this article, we’re going to explain the perks of new construction homes for those of you that hadn’t considered them as a viable option or are perhaps put off by a perceived lack of value.
The benefits might surprise you:
New Construction Homes in Orlando:
Upon first inspection, a new construction home may not seem like a good value proposition: For the same cost as a newly built house or apartment, you can often find a resale property offering more floor space and a host of desirable features.
Dig a little deeper, however, and the gap between new and resale closes considerably, often favoring the new construction…
A Fast Appreciating Asset:
As a rule, builders of new construction homes in Central Florida typically develop sites in batches. This means that if the new construction of 50 homes is being undertaken, the builder might first erect an initial sub-division of 20 properties, before pausing to recoup some of the costs, then continuing on with the development.
Each time a subsequent batch of real estate is completed (and sold), the builder will gain the confidence to raise prices. As the development becomes more mature and the overall vibe of the area improves, early buyers will often enjoy very favorable returns on their investment.
How Much are We Talking?
It’s tricky to estimate, but it’s not unheard of for a $300,000 new construction to rise to $350,000 by the time the entire development is completed.
Competitive Financing Closes the Gap Even Further:
In a bid to entice prospective buyers, builders will often team up with an approved lender to offer very competitive rates of interest: A typical interest rate of 3.5% might drop as low as 2.25% for a newly built home.
It’s in both the builder’s and the lender’s best interests to quickly sell newly constructed homes using favorable lending rates in order to cover the cost of completing the entire development.
Looking for Even Greater Savings?
Many companies will often waive the closing costs of the sale as well, making for an even sweeter deal compared to buying a typical resale property.
Let’s Address a Big Sticking Point: The Lack of Swimming Pool
New construction properties typically don’t come equipped with a swimming pool. For many prospective buyers, that’s a large downside that’s hard to get past, even if the development has a communal pool of its own.
However, once you run the figures, the cost of installing a brand new pool yourself is often pretty manageable: For starters, as we’ve previously mentioned, your new construction home will typically be appreciating in value. That means it’s often fairly straightforward to arrange a line of credit to cover the cost of a pool installation.
Then there are the hidden costs of pool ownership in an older property: A 15-20-year-old pool will require maintenance, and if expensive parts fail and plumbing needs bringing up to code, the costs can rapidly mount up.
We’re not saying that a new pool is cheaper per-se, but you might well be surprised at the overall outlay of maintaining (or upgrading) an older installation.
Besides, if you add up the amount of money you’ll save by moving into a more modern and energy-efficient home, the difference in costs will close even further.
This brings us neatly onto…
New Construction Homes Are Much Cheaper to Run:
Compared to an older property, a newly built home will almost certainly cost far less to run. You can expect huge energy savings from the following improvements:
- Energy-efficient glazing and doors.
- Better insulation combined with more modern construction techniques.
- Energy-efficient hot water heating and air conditioning.
Many builders often include appliances like refrigerators, microwaves, dishwashers and stoves too, so you’ll enjoy even greater savings by moving into a home equipped with all the latest gadgets.
Warranties Bring Peace of Mind:
In addition to the obvious economic benefits of buying a new construction Orlando home, any nasty surprises that occur should be taken care of free of charge. A typical new construction home will benefit from the following:
- A one year warranty on workmanship.
- A ten-year warranty on the building structure itself.
Those kinds of assurances will help enormously when it comes to securing a mortgage and can even help to lower the cost of home insurance, especially when it comes to high-ticket areas of the building, such as the roof.
It’s Less Stressful Securing Your Dream Home:
Shopping around for a resale home can be a stressful process. It’s difficult to commit to the purchase of a new property until you can guarantee that your existing home has been sold. And in a market like the current one, that could mean losing out.
When dealing with a new construction home, there’s typically a six to eight-month wait whilst the building process takes place. That’s ample time to make a sale on your existing home…
Finding a New Construction Home in Central Florida:
New construction homes in Orlando and Central Florida aren’t always listed on sites like Zillow or Realtor.com.
But don’t worry, we’ve got you covered!
If you want the best deals and broadest range of options and extras, head over to our site, where you can search across all of the popular central Florida locations for every type of new home construction imaginable, including vacation properties!
Your brand new custom Orlando home is waiting…