Thinking about buying a new construction home? One of the reasons new construction homes are so appealing is that no other homeowners have ever lived in them.
However, they come with different considerations and potential pitfalls compared to resale homes. If you want to walk away with the best possible, it’s important to be aware of all the benefits and drawbacks of new builds.
In this post, our team at Your Home Sold Guaranteed Realty — The Nathan Clark Team will explore what every homebuyer should know about new construction homes and the process of buying one.
Pros and Cons of Buying a New Construction Home
Buying a new home comes with some unique pros and cons that resale homes don’t have. First, the most obvious benefit is that everything about the home is brand new. Appliances are the latest energy-efficient models, and the style and design of the home itself are modern.
In addition, many builders let you buy a home before it’s built, allowing you to make it truly your own.
This gives you the opportunity to customize the exact flooring, hardware, and fixtures you want during the construction process. The builder may also offer some specific upgrades at an additional cost.
Another benefit to new homes is that they come with warranties. This means you won’t have to worry about pricey repairs or appliances breaking down.
Some of the financial downsides of buying new build homes are that they tend to be more expensive and come with larger down payments and property taxes.
The larger price tag covers all the materials and labor that went into building the home, not to mention the brand-new appliances. It’s important to note that new homes are often located in gated or private communities, which means you may also have to pay HOA fees.
Another con to new homes is that you deal directly with the builders rather than another home seller. New homes are created by building companies that often care more about turning a profit on their investment rather than your satisfaction with the home.
That’s why it’s important to have a realtor on your side who can help you understand what exactly you’re getting for the price.
Steps Involved in Buying a New Build Home
Buying a brand-new home is fairly similar to purchasing a resale, with a few key differences. First, you’ll need to look for new home developments in your area to narrow down where you want to live.
Then, you’ll need to do some background research on the building companies themselves to see whether they have a good reputation and are known for delivering quality products.
Doing all this research can be more complicated than browsing resale properties online. For this reason, it can be a good idea to reach out to a realtor even if you’re early on in the buying process.
They’re likely already familiar with the building companies and can help you find the best ones in your desired location.
Financing a New Construction Home
After you’ve narrowed down some options, you can start worrying about financing. Like any home purchase, you’ll need pre-approval from a lender.
Some building companies have their own preferred lenders, though they don’t necessarily represent the best deal for you.
There’s no requirement to use the builder’s lender– you can shop around to find the best deal for you. Just be sure to work with a lender who specializes in new construction, as the loan terms are slightly different than with resale properties.
Once you have a lender and have picked out your dream home, you can put down your deposit and go under contract.
New construction homes don’t have as much room for price negotiations. But if you’re one of the first buyers in a brand new development early in the construction phase, you may get a slightly better deal on a home.
This is because builders are looking to generate interest and get their homes sold, so they may be willing to sacrifice some of the cost to attract buyers. However, being one of the first buyers in a new development isn’t always possible.
In this case, some other aspects of the home may be open for discussion, like the cost of upgrades or closing costs. Your realtor can advocate on your behalf so that you end up with the best deal.
Lastly, even though you’re buying a new home, it’s still important to get a home inspection by a third party. That way, you can catch any mistakes that may have been made and ensure you’re getting a quality product that meets the area’s building standards.
Buy a New Home in New England With Our Realtors
Buying a new construction home isn’t necessarily easier or harder than buying a resale– there are just different considerations involved. That’s why a realtor is essential when buying a new home.
They’ll ensure you understand the terms of the builder’s contract and advocate for your interests against building companies that only care about making a profit.
At Your Home Sold Guaranteed Realty — The Nathan Clark Team, we’ve proudly served home buyers in New England for nearly 21 years. Our award-winning realtors are experts at navigating the housing markets in Rhode Island, Massachusetts, and Connecticut to help you find your dream home.
Our years of experience in the New England area have allowed us to develop connections with builders, lenders, and other real estate professionals. We use these connections along with our expertise to get you the best possible deal, whether you decide to go with a new or resale home.
On top of that, we make the buying experience easy with our buyer guarantees, like our Exclusive Buyer Protection Plan.
To learn more about what it’s like buying a home with us, call 401-288-3557 or fill out the form below for more information.