Nearly 1.6 million homes were constructed in the United States in 2021, according to the US Census Bureau. As attractive as having a brand new, never-lived-in home can be, in some cases a new construction home isn’t always the right choice. If you’ve been thinking of buying a new construction home, it’s wise to weigh the advantages and disadvantages of this type of home before you start looking at properties. We’ll outline a few of these pros and cons for you.
Good reasons to opt for a new construction home
1. You’re the first owner.
When you buy a newly-built home, you’re the first family to live in that home. That means all of the fixtures and appliances are brand new, and you don’t have to deal with another family’s neglected maintenance.
2. You can choose your finishes.
With most new construction homes, you have the option of choosing the colors you want in your rooms and finishes like flooring, countertops, appliance colors and light fixtures. This makes your new home more “yours” than a previously-owned home.
3. It’s energy efficient.
New homes have the latest in energy-efficient windows, HVAC equipment and appliances. With an older home, you might have to spend thousands of dollars to upgrade these house components.
4. You get a warranty.
Most home builders offer a warranty on your new home. Typically, this covers things that go wrong with the structure in the first two years. However, builders warranties can vary dramatically.
Reasons against purchasing a new construction home
As great as a new construction home sounds, there are a number of good reasons to stick with a previously-owned home. Some of these include…
1. New construction homes are more expensive.
The cost of a new construction home is, on average, 20 percent higher than a comparable, previously-owned home. In addition, it’s important to be aware that the model home you’re shown likely includes several upgrades and is not available at the base price for the development.
2. There are limited options for customization.
Yes, you’ll be able to choose many of your finishes, but your builder will likely say no if you ask him to change the basic layout of the home or add a feature like a screened-in porch or extra bath.
3. You’ll have to wait for your home to be built.
In most cases, you’ll be shown a model home that will look similar to your new home. However, your home won’t be started until you close on the sale. Depending on the area, the weather and the availability of materials, it could be 3 to 12 months before you can move in. With an existing home, you can generally move in when the sale closes, usually 30 to 45 days from the time you sign the sales contract.
To learn more about whether a new construction home is right for you and to get pre-qualified for your new home, contact the Potempa Team at OneTrust Home Loans. We have more than 25 years experience.