The Pros and Cons of New Construction Homes

When searching for your home, keep in mind that you are in control of the transaction. You choose your real estate agent, home inspector, mortgage provider and of course, your home. All of these decisions can sometimes be overwhelming, and for some people turn what should be an enjoyable experience into something they dread. However, with the guidance from a knowledgeable Coldwell Banker® agent, the purchase of your next home will be something you celebrate and enjoy for many years. Your lifestyle and how much you enjoy the ongoing maintenance and upkeep associated with homeownership are key considerations to finding the best home for you. Most people prefer new construction over existing homes. But older homes have some advantages that should not be overlooked, and may make an existing home the right choice for you.

We’ll discuss the Pros and Cons of older homes in a future article.

Buying a New Construction Home - The Pros

The vast majority of new homes are built in subdivisions with a unified style and restrictions in place to maintain the property values. The developers chose the location of the subdivision for one very important reason: it is where home buyers want to live. Developers factor in what people in the area can afford, amenities that most people want, and home features that are desirable to their targeted market. Simply put, they make the process as easy and enticing as possible for you. There are other advantages to opting for a newly constructed house:

During construction you can add the extras you have always dreamed of having in your home. A hot tub can be an expensive modification in existing homes; not possible in some older homes.

New homes feature the latest styles like an open floor plan and large family rooms for entertaining guests.

Many new homes have low-maintenance exteriors such as vinyl-wrapped windows, trim, and railings and Hardie Board siding. That means less time spent on routine maintenance. You are free to spend your off hours golfing, traveling, or just enjoying your home with a backyard cookout.

Architects design new homes to maximize space. Engineers develop construction materials for optimal energy efficiency. Highly efficient HVAC systems, windows, and Energy Star appliances equate to lower utility bills.

New homes come with a one-year warranty; some builders include warranties for up to 10-years.

Buying a New Construction Home - The Cons

There are often incentives and free upgrades if you use the builder’s recommended lender. But that may not be the best deal for you. A builder can require that you get qualified by their preferred lender, but they cannot mandate that you to use that company for your mortgage. They also cannot charge buyers who choose their own lender a higher price. But they can reduce the listed price as incentive for using their lender. While allowing the developer/builder to streamline the process is convenient, new constructions come with some drawbacks:

There is very little room for negotiation. Builders may work with you on some upgrades, but most stay firm on price. Some home buyers in large multiphase developments, who have attempted to sell their home after a few years, sometimes find themselves competing against the builder for potential buyers. They also may end up selling for less than they originally paid for their home.

New construction often lacks mature landscaping and may have smaller lots than existing homes. The developer generally maximizes available land. The result is limited outdoor space and extremely close neighbors.

It could take many months or years for the development to build out and new construction to cease. That means heavy equipment stirring up dust, mounds of debris or large bins, and the noise of saws and nail guns year-round.

You may be limited on possible modifications to your home and what you can have in your yard by tight subdivision restrictions.

With a knowledgeable real estate professional on your side, you can make an informed decision about your purchase of any new home. You should also have any house you plan to buy inspected by a certified home inspector. Make your decision based on a logical assessment of your needs. Ideally, you should have a second and third choice in case you need to walk away from negotiations on your ideal home. People who make objective decisions about their home purchase based on lifestyle preference and aptitude for home improvements are more likely to feel good about it in the years ahead.

Provided by:

Jay Burnham & Linda Morey, Premier Associate Team

Coldwell Banker Residential & Commercial Brokerage

NorthShoreRealEstate.com