Here’s what you need to know about buying new construction right now.
The advantages of buying a new construction home in today’s intense seller’s market currently outweigh the disadvantages. But what, exactly, are those advantages?
For starters, you’re locking in a price while the home is being built, and you won’t face much competition. Resale homes, on the other hand, are seeing five, 10, and 15 offers right now. When you sit down with your agent and the builder to write up the contract, you know that the price is set—you won’t have to bid up to $15,000, $20,000, or even $30,000 over asking price.
Furthermore, home values have been appreciating at an impressive clip in recent months. Due to the building shortage, the typical construction time for a new home is right around 10 to 12 months. By the time you close, it’s likely that your property will have already seen some slight appreciation.
You also have the ability to choose some of the home’s amenities—color schemes, flooring, kitchen cabinets, etc. Another huge perk: Access to the most modern living accommodations. There are a lot of newer areas with HOAs that include recreation centers and shared facilities.
Let’s take a look at some of the cons. Though interest rates have gone up a little bit, there’s reason to believe that they’ll remain fairly steady for the next 12 months. That said, if we do see a significant adjustment, then that means you’ll miss out on locking in a great rate. Second, builders are increasing their prices about every four to six weeks, primarily because there’s a shortage of both labor and materials.
Here at Finch & Gable, we all know the new construction home process. My background is actually construction management, as I used to be working on the other side of the fence for a contractor. We’re equipped to guide you through the whole process from A to Z. We can help you make sure that the contractors are staying on schedule and that you’re not going over budget on change orders. Post-closing, we’ll help you handle any warranty issues.
If you’re thinking about purchasing a new construction home or have any other questions relating to real estate, don’t hesitate to reach out to us. We’d love to be your go-to resource and guide for all things new construction.