Considering New Construction? Here's What You Need to Know!

by Scott Zielinski

The current competitiveness of the real estate market has most buyers exhausted, frustrated and out of options. Many people in the market are considering new construction options, and for some buyers, a newly built home can be the perfect opportunity.

There are many different ways that our local home builders operate, so it can be very useful to have a real estate agent on your side to determine the best route for your newly built home!

Here are some things you'll want to know when considering new construction in your home search:

1. Time Frame

If you are considering new construction in our current market, you will want to discuss time frame with everyone involved. Right now, home builders don't have much inventory... similarly to the resale real estate market. Many home builders have a time frame of 8, 10 or 12+ months to move-in from the point you sign their agreement.

If you have a flexible time frame and aren't in a rush to move, this could be the perfect opportunity for you.

2. Types of New Construction

Communities:

Many home builders have new communities where they offer several lots and floorplans to choose from. Their new communities typically operate in phases, and in each phase there are a number of homesites alloted to build. When building in a community, you can choose your favorite lot and floorplan.

There are many benefits to living in a community. Some communities offer ammentities and access to club houses or private parks and pools. You can also look forward to having neighbors or (potentailly) cul-de-sac living, which can be attractive to homebuyers with children or pets! Many of these communities have Homeowner's Associations which come with rules, fees and guidelines. These associations can be ideal for the right buyer, but it's important to consider any restrictions and fees when committing to community living.

Buying a lot and building:

Another option that some builders offer for new construction is the ability to buy a piece of land and build one of their homes on the land. This gives buyers the flexibility of being wherever they want, but it comes with a little more leg work. Some builders will take care of all of the permitting, land inspections and tedious items, but others won't. Discuss this with your real estate agent if this is an option you're considering for your new home. They may have a homebuilder in mind that will offer you what you need!

Additionally, your financing options can be more complicated when going this route. You can finance the purchase of your land and the construction, or you can purchase a piece of land in cash and finance the construction. Again, there are multiple scenarios and one may be better for you. Reach out to your agent to see how they can help!

Spec Homes:

Sometimes builders will build "spec homes" either in communities or on a piece of land that they own. In our current market, it's rare to find newly-built spec homes that are available, but you can always reach out to your local builders to see if they have any upcoming spec homes or similar quick move-in opportunities.

3. Benefits of Buying a New Home

Everything is... well, NEW!

When you buy a new home, everything in your home will be brand new. You won't have to worry about replacing A/C units or appliances around the home. Usually when you move into a resold home, there are a few things that will need to be attended to or replaced.

Warranties

A lot of home builders offer warranties on several products installed throughout their homes, in addition to their own warranties that cover fixing items after moving in. Each home builder is different, but this is a huge benefit to buying new.

Energy Saving Features

A majority of home builders these days have green or energy-saving features throughout their homes that save you money on your utility bills (and also help the environment)!

Choosing Everything Inside Your Home

When you build a new home "from scratch," you get to choose the floorplan, countertops, cabinets, flooring, colors and everything else yourself! This gives you the opportunity to completely personalize your new home and make it truly your own from the day you move in.

4. Price Range

Right now, for many homebuyers it may make more sense to build a new home given the extreme competitiveness of home pricing in the resale market. If you have flexibility in your price range, it may be worth it to utilize that flexibility toward a new home rather than buying a resold home and making renovations or fixing it up. In our current market, new homes are very competitive to resold homes in pricing when considering what you receive in return.