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Busting the Myths: Five Misconceptions about New Homes

By
Real Estate Broker/Owner with Hamm Homes

Busting the Myths: Five Misconceptions About New Homes

New construction homes are becoming more popular again. But there are some misconceptions about new homes that prevent many buyers from taking the plunge.

Here are five common myths and truths behind new construction:

1. Financing new homes is hard.
New construction homes can actually be easier to finance than existing properties. And while builders may offer incentives to your clients to use a recommended lender, referring them to me enables them to compare their offers.

2. There's no way to inspect a new home.
Most homebuyers are invited to inspect a home while it's being built after the initial framing and walls are complete. Local government will also inspect a property before occupancy is approved.

3. New homes all look the same.
There are usually plenty of opportunities for homebuyers to customize their new construction home. Existing homes are the ones sold "as is."

4. Pre-owned homes are better.
Tougher building standards, improved codes, and more energy-efficient features mean that new homes keep getting better.

5. New homes don't need an agent.
Wrong again. This may be true for experienced investors. But new homebuyers can benefit from having a real estate agent help negotiate the deal.1

Comments (12)

Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

One often finds tons of incompleted work before closing. It is important to do a final walk through.   I learned the sales people are often unresponsive after signing documents including their own mortgage. 

Feb 24, 2023 08:03 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

great points, and especially number 5 - particularly for less experienced buyers, they absolutely need someone representing their interests! 

Feb 24, 2023 08:04 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Good tips, having just bought new construction I can see how easy it is for a buyer to miss certain things and would always recommend having a home inspection.

Feb 24, 2023 08:52 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Bill,

These are excellent tips concerning new construction. ALWAYS have an adovcate representing you! I always remecommend inspections on new construction and have a good list of inspectors who regularly inspect new builds.

Feb 24, 2023 09:47 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Sam and thanks for stopping by to comment on this blog.

 

Feb 24, 2023 11:58 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lise Howe and you are so right about number 5

 

Feb 24, 2023 11:59 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Nick, I remember one of my home inspection did not even run heat to a bedroom.

 

Feb 24, 2023 12:00 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Dorie, I am a firm believe in inspections.

 

Feb 24, 2023 12:00 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Will- these certainly are misconceptions!!!  I have first hand experience because Larry was a new home builder. 

Feb 24, 2023 07:59 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Will there are so many misconceptions in real estate and that is why the buyers need a seasoned Realtor to help them out, Endre

Feb 24, 2023 09:45 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Consumers would be wise to pay attention to these things as they could really benefit from this advice should they want to purchase a new home.

Feb 25, 2023 05:59 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Oh boy do those purchasing a newly constructed home need a seasoned agent for sure.

Feb 26, 2023 08:13 PM