In each of the past three years, more than 1 million new homes have been built in the United States. Industry observers predict this will again be the case in 2019.
New home construction is a booming industry right now, which leaves many prospective homeowners wondering whether they should opt for a new home or a “used” one.
The Case for New Construction
When you’re ready to buy a house, the first decision is usually between buying a current listing on the market, or going for a new structure. And if you choose the latter — which many people do — you have even more choices to make.
The first is to find a custom homebuilder to design and construct your home from scratch. You’ll search for land, work with an architect, may have to choose a builder, and manage the entire subsequent process.
However, your second option at this point would be to work with a large contractor who is already developing a community. Either new residences have been completed and await purchase, or you might select from one of several tract floor plans and add customizations as you see fit.
For reasons related to cost and convenience, most people end up choosing the second major option. Regardless of which way you decide to go, new construction offers an array of advantages we think you’ll appreciate. Below are eight of the most important.
1. Build it Your Way
If you choose to build your home from scratch, you’ll have a say in everything. You’ll pick the floor plan, decide where to place the appliances in the kitchen, select the trim work, and dictate everything in between.
In a word, you’ll put together a house that has your fingerprints all over it. But even if you decide to purchase a pre-built home or employ a tract builder, you should be able to make simple modifications to the property prior to moving in.
In some cases, you’ll be expected to pay a little extra. But the process is a whole lot easier than trying to buy an existing home and upgrade it after you’ve settled in.
2. Everything is New
Just like a new car from the dealer, a newly constructed residence has a fresh and distinctive smell. Everything inside is new and (presumably) this means fewer issues with breakdowns, maintenance, repairs, and quality.
You won’t have to worry about when the hot water heater will go out, whether this may be the year to replace the roof, or how long the windows will last. You have years until such decisions will show up on the horizon. For now, you’re free simply to enjoy your home.
3. Under Warranty
Even though your house is new, let’s say something does break down. For example, your air conditioning might stop working in the middle of summer and you discover one of your AC units is defective and needs replacement.
Normally, you’d be out of luck. Cha-ching! You’d have to buy a new unit and have it installed.
But with a new home build, everything is under warranty. This means you will get the unit replaced at no additional cost.
4. Peace of Mind
When you buy a home that other people have lived in, you can’t know for sure what you’re getting. Yes, it may look nice, but has it been treated well? This can be difficult to tell.
With a new house, you can enjoy the peace of mind that comes from knowing you’re the only person who has inhabited the property. There won’t be any hidden surprises left by a previous owner.
5. Energy and Cost Savings
New homes today are far more energy-efficient than those that were built 20 or 30 years ago. In fact, new residential structures today are significantly more efficient than ones that were constructed only five years ago.
So, you should save considerable money on your monthly utility bills and enjoy the use of products that last longer, including windows, appliances, and other key components.
6. Home Safety
Newer homes tend to be more safety conscious — particularly in terms of fire safety. From simple items like hard-wired, interconnected smoke detectors to fire retardant building materials, a new home will assure your family they can rest easy at night, knowing they’re safe.
7. Better Bargaining Power
When you buy a new home from a builder, you typically have more bargaining power than you would buying an older structure from its current resident. People can be emotionally attached to their long-time residence and may overvalue their homes.
Builders regard the matter in a more businesslike spirit. “I’ll put it to you this way: a $30,000 hit over 30 lots hurt a lot less than a $30,000 hit on one existing house,” home builder Christopher Rachuba says. “So I think [buyers] may get more bargaining [power] that way.”
8. Flexible Financing
It’s also possible to get more flexible financing and closing terms, particularly when you work with a big national firm that has its own mortgage company as part of the organization.
New home builders may offer to pay points or closing costs to entice prospective buyers. It’s also not unheard of for a large company to buy down rates for a buyer.
In a seller’s market, the seller of an existing home isn’t going to make these kinds of adjustments for the buyer. The homeowner will just move on to the next offer.
Buy and Sell With Green Residential
When it comes to buying and selling houses in Houston, few names can cite more years of experience than Green Residential. For decades, we’ve worked with Houston real estate investors and property owners to guide them through the process of owning, managing, buying, and selling real estate.
We offer friendly terms — including a flat fee rate when we sell a home — and are constantly looking for ways to please you, our client. For more information, please contact us today!