New Construction The Right Option?

March 5, 2024

New Construction The Right Option?

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Buying a house under construction is a more viable option now than it has been in the recent past.  That’s because a lot of builders are undertaking to fill market needs due to the limited inventory of current homes for sale.  Mortgage rates in the mid-sixes have kept some potential home sellers staying put so as not to relinquish a low mortgage rate for a higher one.  So here are just two reasons that you should consider buying a home under construction, as well as two reasons to pass on the option.

PRO:  It is brand new.

Who wouldn’t like to be the first owner for most anything?  For a house, that means everything should work perfectly, with no repairs, painting or replacements of anything needed for years to come.  Appliances will likely be state of the art and energy efficient, landscaping will be pristine and it will be the ultimate move-in situation.

CON:  Timing may be off

If you have a short window to move into a new home, buying new construction or a home that’s still being built might not be the right decision.  Buyers of homes being built must have flexibility, as there are often delays before completion.  So, trying to time a move to get kids into a school system or other desire on a time frame can be problematic.

PRO:  It is customizable.

Assuming the house is not close to completion, a buyer can have great input into what they want to change.  Appliances, paint colors, and some building materials can be chosen or altered if the builder allows.  Again, the move-in date will usually have to be flexible to allow for more time needed to finalize any changes made.

CON:  New is more expensive

Buying something new costs more than a used version, including a house.  While the median price of a new home at the end of 2023 was around $435,000, the median cost for an existing home during the same time was around $387,000.  However, paying less on a resale doesn’t always factor in any upgrades or repairs needing completion.

New construction is not for everyone, but currently there are various communities, builders, locations and prices to give buyers many great options.  And remember, the sales agent with the builder works for THEM, not YOU.  So always be accompanied by a realtor who can make sure all goes well with your contract all the way to the finish!

Some content courtesy of a recent NAR article.  

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585

Homes Sold 1999 – 2022

45

Average sales per year

$110,116,000

Total sales volume 1999-2022

$5,034,318

Average sales volume per year