Buying a New Construction Home Vs Existing Home: Which is Right for You
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This could let you choose a bigger parcel of land, perhaps a corner lot, or a location in the development that will give you better views or access. You won’t have to put up with the previous owner’s design choices and get to start with a blank canvas. A brand new home should also require less maintenance than older properties. This should reduce the chances of things breaking, leaks happening, and urgent repairs. But even if something does go wrong, you should be covered by a warranty for the first few years anyway.
When buying an existing home, the property is sold as-is or with a few minor repairs as dedicated in the offer. Additional investments are required for remodeling, renovations, and decorating, where new construction allows specific customizations for a one-of-a-kind home built for longevity. The best way to find new construction homes for sale is to reach out to Felix. We’ll alert you whenever a new home that matches your criteria is being built. At Felix, we’ll learn a little about what you are looking for in a home. Then, we will guide you throughout the home buying process, from choosing the best area to picking a reputable builder and managing the sale.
New Construction Vs. Existing Homes
If you’re more attracted to new construction homes, it’s because you’re attracted to the architectural differences. You can evaluate the pros and cons of buying a new or a resale home. More designs that appeal to modern lifestyles like open floorplans and light interiors.
When you buy a newly constructed home, you will have access to many designs and varieties that you cannot get with an existing home. You will likely find something in your budget and all the specifications you want when buying a new construction house. All prices, promotions, features, floor plans, elevations and dimensions are subject to change without notice. There are a lot of things to take into consideration when you are at the beginning of your home search. One of the first things you will decide is the general area you want to move to.
The potential downsides of new construction
When looking to move into a new home, many consider the option of buying a home first. Of course, there are some advantages and disadvantages when it comes to buying an existing house. Though a new-construction home may cost a little more initially, if you plan to stay put for a while, chances are you’ll recoup that expenditure quickly. To begin with, new-construction homes tend to hold their value well.
Whether you’re looking to buy, sell, or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today. A newly constructed home is appealing for many reasons, but before you set your sights on a brand new house, you need to consider the downsides. Higher taxes could also make being approved for a home loan more difficult. The property taxes could reduce the amount the lender is willing to loan, possibly stopping you from being able to buy the new build.
Potential for more repairs and maintenance
One of the exciting things about a new-construction versus a pre-existing home is that there is the possibility that you’ll get to make some design decisions to suit your personal tastes. Adding a finished attic or a sunroom, or choosing your kitchen cabinets and counters to suit your tastes can be accomplished more easily with a newly-built home. Remodeling to change the structure of an existing home can be complicated and expensive. LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site . LendingTree does not include all lenders, savings products, or loan options available in the marketplace. LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site .
It’s also important to consider whether any renovations or changes you want to make to your home need to be approved by a Home Owner’s Association. These projects can truly start to add up and should be an expense you budget for after you make the biggest purchase of your life. Because existing homes are older, they also have matured greenery. This growth of trees, bushes, and other plants actually work to protect your home from weather and natural wear and tear. Countless families have made these houses their home and added their own personal flare to make it what it is today.
But when reality strikes, the young aren’t buying new homes quite as often as older adults are. Census data from 2012 reveals that just 5.5% of adults under 35 who bought a home in the previous year purchased a recently built home, lowest of all age groups . New construction homes come with builder warranties on things like your roof, plumbing, and electrical systems. These warranties can be a huge safety net if you encounter issues soon after moving in (and one you won’t get even with newly renovated existing homes). While you might imagine that buying new construction means that you can select whatever materials you want your home finished in, this won’t always be the case. Most of the time, your builder will only offer a limited range of options for the materials you can select.
And if you get in early, chances are you’ll see the home price go up upon completion. “If there are any issues with the home during the warranty period, such as a leak in the roof or a crack in the foundation, the builder will cover the cost,” says Little. Because you’re moving into a space where everything is new, maintenance costs should remain at a minimum for at least the first few years.
With older appliances, plumbing and electrical systems, you may run into major maintenance issues sooner rather than later. With a home warranty, you know exactly how much to budget for home repairs and who to call if a problem arises. In general, you’ll likely find it cheaper overall to buy an existing home, but that also depends on the market. A home loan is less risky than a land loan, and typically comes with a lower down payment and better interest rate.
Learn how to qualify for a mortgage in 2023 before working with a lender with our detailed overview of the minimum mortgage requirements by loan type. Our Approved Lenders offer specialized programs designed for you! If they’re a must for you, you may want to consider new construction as your best option. I am a full-time REALTOR® specializing in Wellington Florida Real Estate since 2001. Whether you are buying, selling or renting I can assist you with all Real Estate needs. For example, formaldehyde is one of the most common chemicals released from wood in a new house.
Financing options for new-construction homes are the same as for pre-owned homes (e.g., conventional loans, jumbo loans, and government-insured loans). One of the benefits of buying a new construction home vs. existing home is that new homes are designed to match the preferences of today’s homebuyers. Older homes may have smaller closets, smaller windows and a more closed-off, formal floor plan instead of an open kitchen. As the housing market continues to recover, new homes should be a growing share of overall sales. Year over year, the inventory of new homes for sale rose 25% according to the Census – well ahead of the 3% increase in the inventory of existing homes for sale according to NAR. For homebuyers who want a new home and are willing to pay the upfront premium to get one, this is good news.
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