A new construction house is a home where the buyer is the first person to live there after it’s built—but it can happen in a number of ways. A buyer may purchase their own plot of land and contract with everyone needed to build a custom home, including an architect and builder.
On the other end of the spectrum, a buyer may purchase a completely built home and the property it’s on from a developer. The home buying process can fall somewhere in between as well. For example, a buyer might purchase empty land from a developer and then choose from a variety of home design options, and then a builder will build the home.
A custom, tailor-made home provides a unique opportunity for builders to showcase their creative talent and craftsmanship. It also allows you to express yourself with finishes that reflect your tastes, preferences, and personalities.
Existing homes rarely offer the opportunity for you to change the layout of the house. At best, you can remodel and change out the old fixtures and finishings.
On average, it cost around 20% more to have a new home built than to buy an existing one. This number changes based on the area and price range of the home.
Newly constructed homes offer the most sanitary solution possible. Moving into a new home knowing that no one has ever lived there is a great feeling. New houses provide all of the latest materials and sealants. Living in a brand new house that no one has ever lived in will eliminate any nasty surprises you might find when buying an existing older home.
Developers creating new neighborhoods typically tear down all of the vegetation in the area as the most costly way to break ground. When you have a new home built, you may have to pay extra to have new landscaping put in. This expense can be costly as the average landscaping project for a home is around $3,000 to $16,000. These additional costs come out-of-pocket in most cases.
New home builders like to stick with their most commonly used products and materials. The option of choosing products outside the showroom will most likely not be available for you. Make sure to get information on all of their products!
When buying an existing home, you might be able to buy it for the set price without any other expenses. Buying a new construction home means that there are always more costs than just the purchase price.
The new-home smell that so many people love may be damaging to your health. Formaldehyde is one of the most common chemicals that is released from the new wood in a home.
Over 10,000 potential chemicals off-gassing in a new home, it can take up to 10 years for these chemicals to fully vent. If you're sensitive to chemicals, make sure you do more research before making your next move.
An existing resale home is like a blank canvas. It’s just waiting to be created as the buyer sees fit. When you purchase your own new and improved masterpiece, there's no need for updating because the products used are taken from the current design trends.
When purchasing an existing resale house, the previous owners could have picked out the design choices decades ago, such as colors or flooring patterns. This leaves the new homeowner with the desire to update.
The efficiency benefit from new construction causes utility costs to be lower than average. A few reasons include vinyl windows, new door trim and seals, and better insulation between walls to keep out drafts. These products can reduce the need to heat and cool your home by a significant amount. The savings help to offset the higher cost of a new home in the long run.
New construction homes have less maintenance than older existing homes. You won’t have to worry about your roof leaking when it rains or your air conditioner breaking in the middle of summer. You can enjoy all the perks of living in a brand new home without maintenance headaches. When things do breakdown, they are typically covered by the builder’s warranty.
With a new house, typically you have to wait 3-12 months before moving in. This issue can be a challenge for people who are in temporary housing and need to get out of their current situation as soon as possible.
If you buy an existing home, you can move right into your new place within 30 to 45 days of signing the sales contract.
Everything you need to know about buying new!
Research prior to visiting model homes!
Builder lenders might charge you additional points in order to give you 'incentives' make sure you talk to a local lender first to know your numbers
You need a realtor who is familiar with the new build process. Have peace of mind that you have someone in your corner.
Look at floorplans, make a list of questions, and read any past customer reviews.
Typically, the best way to negotiate with a builder is through upgrades rather than a price reduction. Your realtor can help you navigate where to push. Document everything in WRITING!
We try to make it as smooth as possible for you to buy a home. Connecting you with lenders, financial advisors, and more to help you along the way.
You need to remember - you are not buying the model home. Don't assume that what you see is what you get. You'll want a good understanding of the options - and remember structural items cannot change once you sign the contract
The builder will conduct inspections throughout the process, but you'll want your own third party inspector. I recommend at least twice (if not more) both pre-drywall and post-drywall.
Coverage for new construction varies from builder to builder. You'll want to have a proper understanding of what is covered in your first year, second year, and if they offer a structural 10 year warranty.
The more custom your home is, the less likely of a reliable timeline of completion. You'll need to work with your agent and builder to make sure the timeline goes as smoothly as possible.
This happens about 2 weeks prior to closing day. We go through and blue-tape every item that needs to be fixed prior to closing. Sometimes they'll fix it after closing as well so just keep this in mind.
The morning of closing day, you'll walk your new home once again. You will then close on your home, sign all of the paperwork, and move into your new home!
The post-closing experience varies from builder to builder. I recommend keeping a list of items that need to be addressed. They will most likely stop by at one-month and 11 months. I recommend getting another home inspection prior to the end of the one year warranty so you can address all of those items. Remember structural items might be covered in years 2-10.
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