With Low Inventory, Does Buying A New Build Make Sense?
With a continued shortage of housing inventory for sale, many home buyers are considering new construction. It used to be that new homes cost more than resale homes, but that’s not necessarily true anymore.
For almost every advantage of buying a newly built or an existing home, there’s also a flip side. When it comes to housing, new construction has a never-been-touched attraction, while existing homes have stories to tell.
With new construction you wouldn’t have to worry about updates or renovations. Who wouldn’t want all-new appliances, fixtures, plumbing, floors, windows, and finishes? But not everyone thinks brand new offers the character of an existing home in an established neighborhood.
There are several factors to consider as you ponder buying brand-new or pre-owned. Some of the benefits of new construction include:
Even if you’re not buying a custom home, you can typically select finishes, colors and other options from most home builders. Some choices may cost a bit more than others, but adding personal touches may be worth it to you.
New appliances and home systems, such as heating and plumbing, are generally more energy efficient. Not to mention that more efficient insulation and windows create homes that are less expensive to heat and cool, resulting in lower utility bills.
Since everything from appliances to the HVAC system and roof are brand new, a newly built home needs less maintenance. This makes it easier to calculate monthly homeownership costs and with warranties your new home is protected for years before you need to undertake any major repairs.
Now days buying new construction frequently means buying a lifestyle. Master planned communities often include things like parks and community spaces, as well as other perks to choosing that particular neighborhood.
The median time to complete new construction – approximately 6 months for single-family homes – means you’re less rushed and not forced to compete with other buyers for an existing home.
On the flip side, there are some advantages to purchasing an existing home as well:
New construction typically takes place in outlying areas where the land is plentiful but commutes can be longer. Due to the increase of land costs, the size of new home lots has shrunk and so new homes are only set apart by relatively small yards.
In general, existing construction is hemmed in with mature trees that shade the home in summer, protect against wind in winter, and maybe even block out traffic noise. With new construction, the buyer is usually responsible for procuring their own landscaping.
If you are drawn to character and charm, old mixed with the new, resale is a better option. Established neighborhoods offer a broader variety of home styles and landscaping variances. New builders, especially in planned communities, tend to stick with design styles and finishes that appeal to the broadest range of customers, making post-purchase painting and decorating necessary to distinguish your home from the rest.
- Post-purchase expenses
With new construction, not only is the buyer responsible for the cost and installation of any landscaping, they ordinarily must also purchase blinds or other window treatments, and sometimes appliances. In addition, most of the master planned communities have higher HOA fees to maintain the amenities that make their lifestyle available.
In the beginning at least, buyers are encouraged to look at both types of homes and then narrow down your preferences. At the end of the day, it really comes down to your lifestyle and what is most important to you. Whatever the final decision, it is important to consider the advantages, as well as the disadvantages, of each opportunity.
Having a Realtor on your side, who is experienced with new construction, can help you make an informed, educated selection.
The Platinum Group, Realtors is the number one independent real estate firm in the Pikes Peak regions. They deliver top Realtors with the best tools and resources to provide home buyers and sellers with platinum service and platinum results. With over 80 percent of their business coming from referrals, The Platinum Group, Realtors deliver top quality customer service the utmost honesty, integrity and attention.
For a no-obligation consultation, call today: (719) 536-4478 or visit PlatinumHomesSales.com.