Homebuying March 15 2018

To Build, or Not to Build?

The Perks of New Construction

It’s a question of one or the other: buy new or buy resale? There is no other option. So which is better? That depends on your personal tastes, and what you want in a home. With that said, buying new has some considerable advantages that you don’t get when you buy resale.

Construction Customization

Building a newly constructed home gives you options to customize that a resale home simply cannot give you. With a new home, you can often pick out flooring, paint colors, and even choose between different floor plans. You can request that your builder include trendy design features like an open concept layout, patterned tile, or a farmhouse sink. If you’re buying a home in a new subdivision, you might get to choose your favorite lot. These are all updates that you would have to make yourself when purchasing resale, but the builder will make most of these changes for you in a newly constructed home.

Making the Most of Maintenance

A newly constructed home will require less maintenance and repairs than a resold home—for a few years, at least. Since you would have brand new plumbing and HVAC systems, they wouldn’t require tune-ups or repairs right away. You’d likely have all-new appliances as well, which usually don’t malfunction for a few years. Many home builders offer a warranty and will fix anything that goes wrong with the home within the first year or so. With a resale property, you have no such guarantee. Systems and appliances could break down months or even weeks after a sale, and there’s no way to know if and when they will do it.

 

Lennar Echo Dot Home Source: Lennar

Systems-Check for Efficiency

As discussed, new homes mean new appliances and systems. Those new items don’t just save you from maintenance for a while—they save energy. Newer ENERGY STAR appliances consume less gas and electricity than older appliances do. Newer home systems also tend to use less energy. This translates to lower costs on your monthly utility bills and also lowers your home’s environmental footprint. Unless you put a good deal of money into updating appliances and systems in a resale home, it will simply use more energy. New homes are often equipped with built-in technologies such as alarm systems, speakers, internet wiring and cable. Lennar is even set to launch the World’s first Wi-Fi Certified home with a built-in Amazon Alexa!

Satisfying the Safety Code

When you purchase a newly constructed home from a trusted builder, you can rest assured that everything is up-to-code and safe. Newer homes will comply with fire codes and often feature fire-retardant carpet and insulation. You will also avoid harmful materials like asbestos and lead with a newly constructed home. Resale homes may very well comply with local building codes, especially if they’re newer. However, you don’t get the same peace of mind that a new construction would give you.

Achieving the Savings Edge

If you don’t completely customize your new-home build, you can find ways to save money on it. For one, builders have no emotional attachment to the house, so they value it more realistically than someone who has lived in a resale home for 20 years. They will make the sale purely as a business decision, which can result in a lower sale price for you. Home builders often have a preferred mortgage company, which can facilitate your loan by giving you a lower rate or decrease your closing costs. Sometimes home builders pay closing costs themselves. You typically won’t gain these competitive edges with a resale home.   Your home-buying decision is personal. You may decide that you like certain aspects of buying an older, lived-in home. Just keep in mind the customization, maintenance, energy, safety, and savings benefit that come with buying a newly constructed home.  

Ready to make a move?

Speak to a Loan Officer today!

Sources www.forbes.com www.loans.usnews.com www.nahb.org

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