Topic #5 of our 10 Point Home Buying Series: Is Brand New Construction Right for Me?
Ah…the smell of a brand new home! I always say that buying a brand new home is like having a baby. You decide to buy a specific model and pick out your lot, then you choose all of your interior options and wait 9 months for it to be built.
By the time you move in, you know what kind of construction, insulation and just exactly how much the flooring costs. If this is appealing to you, brand new construction might be right for you!
There are many benefits to purchasing a brand new home. Here are just a few:
- You get to build your dream house
- Everything is brand new
- No repairs or maintenance issues
- Security of having home warranty
- Save money with the latest energy-saving features
- No negotiation or haggling over small issues during sale
- Take advantage of builder incentives, such as closing costs paid or low interest rate
With that being said, you will pay more. Just like a brand new car, once you drive it off the lot, you’ve lost a little money. But, many people prefer to have a home that no one has ever lived in and are willing to pay the price.
Remember these things when buying a brand new home:
- Add between 10 – 20% to the base price of your home for upgrades.
- Be prepared to negotiate very little. Depending on the market, builders do not throw in a whole lot for free or reduce pricing.
- Get a Realtor! Don’t rely on the Builder’s Agent to inform you about the market or community. They are there to sell you their specific community and home – and at the end of the day, they always represent the Builder first.
- You will pay for everything. The Italian marble in the new home will be four times as expensive as the Italian marble in the resale home.
- There may be construction going on around you for awhile after you move in. Find out how when the development will be complete.
- Blinds, window coverings and ceiling fans add up! Make sure you budget for these items after closing.
Weigh the pros and cons of buying a brand new home. Your decision may also depend on the local real estate market. Ask your professional Realtor to give you an objective view of the housing market so you can make the best decision for your needs.