Pros and Cons of New Construction

As Inventory is low, many people will turn to new construction thinking that it may be a good option. Many buyers sometimes don't know all the factors that go into purchasing this type of home and how it affects the process. New construction has its pros and cons and I'll be going through all those points below. 

Pros:

1) Brand New - When you're the first person to live and use the home, it alleviates that concern many buyers have of what the previous sellers did prior. This may also be a good option for people because they will most likely not have to do any expensive repairs and there will be less maintenance on the home. 

2) Customizable - there are different types of new construction; depending on the builder, you can fully or partially customize it. There are other builders where there is no customization at all too. It really just depends on what your needs are. However, the customization is an extremely positive factor if you want to have and include certain features into your new home. 

3) Energy Efficient - Newer homes in this market are good news for buyers that want to be "smart" and energy efficient. Many of these homes have built-in technology, good insulation and so much more.

Cons:

1) Longer Timeline - if you're looking to move within 1-8 months, then new construction is not for you. Many homes will take 8 months to 2 years to build. Timelines get pushed and many times building is dependent on materials, weather, and so much more. 

2) Higher Cost - Speaking of materials... lumber and other products will increase the price of your new construction home greatly. Especially in times like this where there is a short supply of goods. The median sales price of a new home as of 2022 is about $423,000 according to the U.S. Census Bureau and Department of Housing and Urban Development. 

3) Decisions, Decisions, Decisions - In those fully customizable homes, you could definitely have moments of feelings overwhelmed. Everything from floor type to door handles, and where you want your outlets to be, will leave many fatigued by the end of the day, month or year.

4) Limited Negotiating Power - Many of the builder contracts are in favor of the builder and not the buyer. Its best to work with a buyer's agent during this time but even then, the contracts are pretty builder leaning. There aren't as many "outs" as you would have if you were working with a re-sale purchase, however, a Realtor will help you make sure you understand what your signing up for. In many situations, I recommend to my clients to take the contract to a lawyer to have it legally explained to them as well. 

Overall, deciding whether to go for a new construction is truly dependent on your needs and timeline. If you're ready to make your move, contact me today so we can get started!