New Build Or a Resale Property?

If you’re thinking about a first-time purchase or a move, have you considered a new build? Most buyers haven’t, thinking they are too expensive. While sometimes that is true, you should consider both the advantages and disadvantages below. In some cases, a new build may be your best option.

Advantages:

• Modern features - often include the latest design trends and energy efficient features

• Lower maintenance costs - a true move in ready home

• Warranty - builders offer a full two-year warranty

• A fresh start - create your dream home from scratch rather than converting someone else’s design and taste

• Financing - builders typically offer finance incentives of 1-2% lower interest rates

Disadvantages:

• Expense - often more expensive than a resale home

• Limited areas - are limited to a certain areas/communities

• Landscaping - typically have little to no landscape

• Smaller lots - often are on smaller lots to maximize space and density

• Neighboring construction - be prepared to live in a construction zone for up to 1-2 years while other area homes are completed

• Less negotiating leverage - the builder sets the price and you take it or leave it

Another consideration is that a new build purchase contract heavily favors the builder over the buyer (unlike a resale purchase contract, which is neutral). Unsuspecting buyers can get themselves into trouble if they don’t fully understand what the contract binds them to. We have a lot of experience working with builders to help our clients purchase a home, and have gone through the process ourselves. You can’t rely on the builder to represent your best interest…but you can rely on us! We are experts at navigating the new build purchase process so if this is something you’re thinking about, let’s talk about how we can help you.