New Builds: The Pros and Cons
I’m working with clients and have had past clients weigh the differences between new builds and “used” homes. According to the Cromford® Report new homes in the Phoenix area are gaining the market share at 9%->13%. Plus, about twice as many people would choose to purchase a new home over an existing one, according to Trulia’s recent survey.
Of course new builds have great appeal, but buying a new home can potentially be more expensive and deliver some uncertainties. This will help you prepare for the experience by looking at the pros and cons of a purchasing a new build.
The builder can customize the home exactly as you want. You can pick out the finishes from cabinets, counter-tops, flooring, paint, and the extra amenities that may come with it.
More likely to include modern design elements, including big open kitchens, outdoor living, dual master suites, charging stations and technologies. Plus, everything is new, which means you will have less maintenance in regards to appliances, plumbing, etc. for at least a few years.
New construction homes often offer the most energy efficient technology, which can save on utility bills.
Upon move in, the work is done for you. There is no remodeling or changing from a previous owners designs.
You get the luxury of being the first to live in a new home with all the new cleanliness and smells of new.
New homes can be more expensive. All the wonderful amenities in the model homes can add up quickly. Upgraded items can be marked up for the builder's profit. Also, you have to look at all the extra costs of landscaping, window coverings, fences, decks, appliances, and other essentials.
Depending on what phase you move into the neighborhood, it can potentially be a construction zone for a few years.
New homes can often be on smaller lots than older, more established homes. The beautiful, quaint, tree-lined, established neighborhood is something that may take years acquire in a newly developed community.
If you love to fix up homes and gain satisfaction in doing so, a new build may not be the best fit for you.
Things to Keep in Mind When Buying a New Build
Research the builder’s reputation and make sure you go through the property home inspection processes and hire one that is not affiliated with the builder.
Note what’s missing and do some research to figure out how much these items will cost. Factor these purchases into your budget. If you can’t afford to pay for them out of pocket, try negotiating the builder to pay closing costs and that might free up the cash you need for the additional items.
The builder’s sales agent represents the builder and any financing the builder may have arranged will not necessarily be the best available financing. Get your own agent and your own lender to make sure you get the best price on the home at the lowest interest rate and fees on your mortgage.
New builds can be a wonderful option and I have numerous friends and clients who prefer them. It just helps to be well informed before moving forward.
Please let me know how I can help with any of your real estate needs.