In a real estate market where inventory is extremely low, purchasing a new construction can be an ulterior route for moving into your dream home, while also providing you the benefit of being the first homeowner to ever live in this home. If this is something that interests you, here are the top factors to consider.
Vet the Builder
Not all new housing development builders are created equal. Spend time vetting the builders whose homes you are considering buying. Ask yourself the following questions:
Does this builder have a good reputation in this community?
How long has the builder been working in this area?
Do I know any homeowners who live in one of their builds that I can talk to?
If your builder is well-known for their quality work and reputable, then it is safe to keep going with the buying process.
Curb Your Customizing Expectations
A major benefit of purchasing a new build is the ability to customize features that would ordinarily be expensive to change, such as color of siding and fixtures, trim and cabinetry. This does not mean that buying a new constructions is a fully customizable process, however. You usually won't get to decide if you want to rearrange the layout of your home, or add a space that was not originally on the plans. Curb your expectations for customizing autonomy, and enjoy the process of making design choices that you can control that will make you the happiest with your new home.
Limit Additional Upgrades
For many new constructions, there will be options to upgrade your home tacked onto the price of the property. Examples of upgrades could include different flooring, fireplaces, kitchen appliances and more. Study the fine print here before going all out on these kinds of upgrades. New constructions can already be more expensive than purchasing an existing home, and upgrades that seem small can quickly dismantle your budget.
Negotiating May Not be in the Cards
When you are buying an existing house, often your real estate agent can help you negotiate on price and other factors. There are factors like competition in the market and the ability to set terms for the arrangement to find a solution that works best for you and the home sellers. When buying a new construction, there is less room for negotiation-in fact, there is no wiggle room in most scenarios. This means you'll often be given a base price, plus whatever upgrades you decide on, and if that is not something you are willing to meet, the builder will bring in another buyer from the line.
These are a few of the top considerations to make when looking at a new construction. While this plan will likely cost more than buying a pre-existing house, you will also generally save money on upkeep in your first few years, as well as getting the satisfaction of being the first person to live in a brand new space.
Even when purchasing a new construction, using a real estate agent is key. They can help you read the fine print, stick to your budget, as well as recommending reputable builders. Our agents are well-trained and even specialize in new construction representation. To get best-in-class support throughout the process, check out our buying guide and set up a consultation.