When you’re planning to move, you have two primary options: buying an existing house or building a new construction home. Many people shy away from new builds because of the perceived difficulties involved. However, there are many benefits of buying a new construction home.
In this article, we’ll look at some of the misconceptions surrounding new construction homes and how they can actually be an excellent choice for homebuyers.
Myth 1: New Construction Homes Are Always More Expensive
While the median price of new construction homes is typically higher than that of resales, there are savings elsewhere to take into account. With a new home, there’s a lower chance that you’ll have to pay for expensive repairs within the first couple of years, such as replacing the AC, furnace, or roof.
In some cases, the savings can be substantial. A new roof, for instance, could cost over $16,000 for a 2,000 square foot house! With a pre-owned home, the costs to replace one or two of these items can add up quickly. New construction homes typically come with a warranty, which will cover most repairs in the unlikely event there is a problem.
Myth 2: New Construction Homes Are Harder to Finance
Another frequently repeated homebuying myth is that new construction homes are harder to finance. While new construction homes often do require a significant down payment, this will vary greatly depending on your financing. For instance, FHA loans, which are available for new construction, require only a 3.5% down payment.
Myth 3: Buying a New Construction Home Takes Too Long
One of the most commonly held homebuying myths is that it takes too long to build a new construction home. It’s true that it takes time to build a new home and you will need to do some planning in advance. That said, most reputable builders can complete a home in less than a year. In fact, U.S. census data shows the average time needed to build a home was between 6 and 8 months in 2020. However, this will shift depending on the supply chain, labor and materials.
Respected contractors are more likely to complete your home within a reasonable time frame, so it really pays to choose carefully and to go with a trusted name.
Myth 4: The Options Are Overwhelming
It might feel easy to get so bogged down in the details of a new home that it becomes hard to decide what you actually want. Fortunately, many builders make it easier by providing a fixed set of options for their new construction homes.
Also, buying in a new home community that partners with specific builders can further avoid the potential “analysis paralysis”. That way, you can get an idea of each builder’s aesthetic and then select your favorite from their portfolios of home designs.
Many builders also have model homes for you to tour, making the decisions about options and upgrades a little easier.
Myth 5: You Can’t (Or Don’t Need to) Use a Real Estate Agent
One of the most common new construction homebuying myths is that you can’t use a realtor. As with any real estate transaction, you’ll want to negotiate on the price, contract terms, and options, and reach an agreement that you can feel good about. Having a realtor to represent you is considered a best practice, even when you’re looking at a new construction home. Builders will typically be happy to work with your real estate agent when you include them early in the process.
Myth 6: You Can’t Have New Homes Inspected
Another common myth about buying a home that is newly built is that you can’t have the house inspected. Home inspections are a common component of buying a home, including new builds. If you desire, you may have a third-party inspection on the home before closing in order to check for any possible defects. While working with a reputable builder can mitigate the risks here, an inspection is still standard practice.
Myth 7: Working with a Builder Is a Pain
One final homebuying myth is that working with a new home builder can be difficult. When it comes to well respected builders, this simply is not the case. Choosing the right builder makes the whole process easier, and you will appreciate the added peace of mind when it comes to the quality of the home’s construction and the customer service along the way.
Again, this is where it can help to look for a new home community that works with excellent builders in the area. For example, Hillwood Communities partners with award-winning builders to ensure that all of our homes reflect fine craftsmanship. They can work with you to select the right features and build a home you will enjoy for years to come. To learn more about our builders and communities, get in touch with us today.