Investing in a new home construction can diversify your portfolio in an excellent way. In the world of real estate investments, there are several niches in which you can specialize. Each requires a thorough knowledge of the property’s needs, risks, and rewards to succeed.
Although it is more common to hear about house flippers and investors that turn foreclosures into rentals, new construction investment is another niche that can bring you great returns. This type of investment offers some unique advantages that are not always included with a fix and flip, providing potential for excellent long-term passive income.
There are also some risks that you should consider so you walk into the situation fully informed. When you work with a real estate agent from Marketplace Homes, you gain access to valuable insights. We also offer a unique advantage with our connections with most of the nation’s top 20 builders. Are you ready to explore the pros and cons of investing in new home construction?
The Marketplace Homes Difference
We work with industry-leading house builders who are professional and informative to their clients. When you invest in a new build, you can stand out from your competitors because you are operating in a niche market. New builds often attract homeowners who are ready for the next step and are moving beyond the starter home. Here are some examples of some unique new build advantages.
You can participate in up-and-coming markets.
When you trailblaze, you can get a foothold in an area that later may become too expensive or exclusive to make a reasonable profit. Imagine being one of the first people to invest in an area that later becomes a hot spot for celebrity homes and resorts. That new build that once cost more than the existing home in the same vicinity is now worth far more than you imagined.
- Note: Appreciation isn’t a guarantee, which is why you should work closely with a real estate agent who can advise you on what new builds could be in emerging markets.
There’s nothing more stressful than attending an auction on an existing property, only for a person to outbid you by throwing in 20k more than they should. You know you’re smarter than that, so you walk away, but the frustration at losing another opportunity remains. However, when it comes to new builds, you’re the only contender. All you have to do is strike an agreement and wait.
Desirable Customization Options
When you establish a new build plan, you are in control of the floor plan. This allows you to choose the most marketable option for future returns. With existing homes, it takes a lot more effort to renovate or make additions.
Investing in a New Home Construction
So, if you are interested in investing in a new construction after weighing its pros and cons, then come onboard! At Marketplace Homes, we have a variety of solutions that typical brokerages don’t offer, such as creative new construction programs that free equity and offer exclusive savings on commissions.
If you have a portfolio of properties that you would like to release in favor of new constructions, we can also assist you with portfolio disposition to help you pay for the new build in cash. Save your place in emerging markets before the competition rises by locking in on new builds.
Working With Top Builders
Not only do we work closely with many of the nation’s top builders, but our agents are experienced in new build transactions. It’s wise to have a real estate agent represent you in a new construction build purchase. There are extra details at play with a new construction contract that real estate agents can help you navigate so that you know exactly what to expect throughout the process.
Investing in New Home Construction with Marketplace Homes
If you’re ready to take the next steps toward becoming a new construction investor, then speak to one of our agents today. As a nationwide full-service brokerage with robust builder connections, we can help you purchase a new build in emerging markets around the country. Contact us today to learn more about how to get started.
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Alicia Persson is a real estate content/SEO writer at Marketplace Homes. She has several years of experience working in real estate teams that specialized in investments and property management. Before she joined Marketplace, she was a freelance writer for 7 years, leading to a specialization in real estate and home living content for boutique digital marketing agencies. During her writing years, she learned the basics of SEO and gained experience writing for many different clients, making her highly versatile at creating diverse content.
She is a proud University of Virginia master’s graduate and enjoyed her undergraduate years at the University of Mary Washington. When Alicia is not writing, she plays keytar and sings in a local 90’s rock cover band, or she spends time with her amazing family.