Should I Buy a New Construction Home in 2022?
October 12, 2021
Buying a new construction home can be exciting. The feeling of being the first owner of a property is simply unmatched.
However, like everything else, there are several factors that you need to consider when choosing to buy a new construction home. Knowing these factors can help you make a well-informed decision.
In this blog post, we will go through the pros and cons associated with buying a new construction home.
Pros and Cons Associated With Buying a New Construction Home
Pros of Buying a New Construction Home
There are some amazing benefits that you can experience only when you move into a newly constructed home. Let’s take a look at them:
1. Latest Construction Standards
One of the biggest upsides to buying a new construction home is that everything is brand new. This means that the home is built according to the latest construction standards.
Whether it is the method of building, plumbing, electrical, or electrical installation, you can be sure that the builder has adhered to the modern construction requirements.
While certain older homes can have their old-school charm and craftsmanship, the older construction methods can lead to costly repair and maintenance expenses in the future. With a new construction home, you don’t have to worry about any immediate maintenance issues.
2. Personalization Options
No one knows your lifestyle and living requirements better than you do. When you are buying a new construction home you have the opportunity and control over every detail in the home.
You can personalize everything to match your taste and reflect your style from the paint on the walls to the light bulb holders
The luxury to personalize a house to your needs isn’t available to everyone. If you are living in a pre-owned home, remodeling the house to your needs could cost thousands of dollars.
3. Lower Maintenance Expenses
One of the biggest perks to buying a new construction home is that everything is brand new.
Although new construction homes are not necessarily faultless, they are certainly less vulnerable to major repair and maintenance issues such as leaking roofs, broken pipes, and so on. on top of that, even if something breaks down, it will get covered under the builder’s warranty.
Hence the maintenance costs for the initial few years are at a bare minimum, which is a huge financial benefit.
4. Energy Efficiency
The cost of utilities is a growing concern for home owners. New construction homes leverage innovations in technology to make the building more energy-efficient.
Whether it is insulation, air sealing, heating or cooling, or the choice of appliances, you have a say over everything.
For instance, by choosing more energy-efficient windows you can prevent up to 25-30% heat loss and gain. Similarly, you can make many other energy-efficient choices like smart thermostats, LEDs, and more.
Even the latest appliances are more energy-efficient, reducing your monthly utility expenses.
5. Clean And Pristine
Cleanliness is another major positive side of buying a new construction home. Everything is brand new and unused in a new home, which makes it all the more exciting.
You cannot expect to experience the same excitement and level of cleanliness in a home in which someone has previously lived.
Cons of Buying a New Construction Home
Not everything is rosy about buying a new construction home. There are several pitfalls associated with it. Let’s take a look.
1. Limited Customization Options
Although you get the option to customize many things in a new construction home, the customization options overall are fairly limited. That’s because unexpected customizations might alter the plan for the house’s development, and more buyers might ask for similar changes.
For instance, you might want to change the position of the fireplace, or add something that’s wasn’t originally apart of the project. In such a case, you might have to do it on your own or pay an additional cost.
You also have limited options for the carpet style, the cooktop design, and even the color of paint on your interior walls because of the above-mentioned reasons.
2. Changes Can Be Costly
A builder is going to offer you a standard set of appliances and fixtures in the home. To get the best and the latest of everything, you will need to pay extra.
Similarly, if you want customization features like recessed ceilings, an updated kitchen, and more, it will be an added expense. Buying a new construction home is already a costly affair, and the additional cost of these customizations can make it even costlier.
So, you have to be conscious of the extra costs while making upgrades and customizations.
3. Less Room for Negotiations
Several factors create a better scope of negotiations when buying old construction homes. For instance, the seller needs the money quickly and is ready to go down on the asking price. Or, perhaps he does not understand the current market value of his home, leaving greater scope for price negotiations.
The window of negotiation is quite narrow when buying a new construction home. They might offer slight upgrades or financial incentives, but you shouldn’t expect them to go below the set base price.
4. Move-In Date Can Get Delayed
One of the biggest cons of buying a new construction is the unpredictable timeline of construction. Common causes of construction delays include unfavorable weather conditions like excessive rainfall, extreme cold or heat waves. Beside this, running out of material could be another reason behind construction delays. For instance, you’ve picked a particular material for the countertop, and the supplier has run out of stock or the company has run out of this material.
These kinds of construction delays can easily turn a six-month timeline into a larger ordeal that might take more than a year to complete. This could mean you would need to find and pay for temporary housing during this period.
Whereas if you choose to buy an existing home, you can move in within 30-45 days post signing the contract.
5. Difficulty When Budgeting
It can be difficult to stick to your set budget when buying a new construction home. You never know exactly how much the home will cost you above the sale price. The upgrades and the changes just keep adding up until everything is finally done.
It is quite common for new construction home buyers to spend a lot more than the costing price of the new home because of the upgrades, additions, and more.
Summary
Most people decide to buy a new construction home simply because it gives them the option to create their dream home. With customization options, you can build exactly what you always wanted your home to have. However, for many people, the cons associated with buying a new construction home can be too much of a deterrent. With this list of pros and cons associated with buying a new construction home you can decide if this is a good option for you.
All the best!