In today’s real estate market, it’s hard out there for a home buyer. The U.S. is facing a housing shortage, and inventories of existing homes are extremely low in many areas across the country. If you’ve already begun your search, you’ve likely discovered this as you’ve browsed various websites looking for a home to fit your needs. Overall, there’s nearly twice the demand and two-thirds of the resale home supply compared to recent years. This can make it increasingly difficult for homebuyers looking to take advantage of record low interest rates.
However, there’s one part of the real estate industry that is booming! New construction on single-family homes could exceed 1 million in 2021. A feat that hasn’t happened since 2007. Builders are offering a wider choice of price range and styles. While new homes may cost more initially, the difference might be worth it. Newly built homes offer many advantages, from energy-saving systems and construction, to modern floor plans to fit today’s lifestyles. Keep reading to take a closer look at the benefits of buying a new construction home in 2021.
Exterior and Interior Customization
Nobody knows your wants and needs better than you do, and having so much control over the details that fit your home to your taste and lifestyle is quite a luxury. Buying new construction means that you get to pick out everything from the color of your siding and trim to the placement of every single light bulb and outlet. Many of the things that you get to customize are difficult, or very expensive, to put in after a home is constructed. Examples include a deep pour basement or extra windows. If you’re someone who loves design or just someone with a lot of preferences about what makes a perfect space, you’ll really enjoy getting to make so many decisions about the different aspects that make your house a home.
Marketplace Homes Expert Tip: Many builders may only have a few options for paint choices, carpet colors, and countertops. In some cases, you may also be able to purchase options such as different appliances and have them installed (usually with a premium) while your home is being constructed.
Across the board, newer homes are specifically built to use less energy by taking advantage of innovations in energy efficiency. Examples of items that can be optimized for energy efficiency include heating and cooling, appliances, and air sealing.
While your builder likely includes some of these options standard, such as energy efficient windows, make sure to ask about other energy saver options as well. Dual flush toilets, smart thermostats, and LED lighting are small but incredible tools to help you reduce your home’s carbon footprint.
Marketplace Homes Expert Tip: A new home today is 30% more energy efficient than a home built just five to seven years ago. Think of what you could do with that significant cost savings.
Lower Maintenance Costs
New homes aren’t immune to needing repairs, but the chances of having to fix a leaky roof or a broken pipe are significantly lower, meaning less stress and less money spent while everything is still new. In addition, most builders include a range of warranties with their homes, which may include a short term full structure warranty and a longer term exterior warranty. It’s a big financial benefit, and a nice relief in the years following such a major purchase.
Should your home inspector identify any problems throughout the process, builders will fix them before you buy the home at closing. You will not have to deal with the dust and noise from repairs after you move it or the inconvenience of having to stay home from work while workers are in your house.
Marketplace Homes Expert Tip: New homes cost less per square foot than older houses. This maximizes your investment while saving you time and money over the life of the home.
Location, Location, Location
Location is one of the most important factors homebuyers consider when choosing to buy new. Newer neighborhoods typically get built close to local amenities, providing families with plenty of options to explore.
For those homebuyers with children, the quality of the school district plays a role in choosing where to buy. New construction homes tend to be built in growing communities where children are able to attend good schools, and tend to have higher achievement rates in English and mathematics.
Marketplace Homes Expert Tip: Location is the one thing about your home that you will never be able to change. It’s better to have the worst home in the best neighborhood, than the best home in the worst neighborhood.
Initial Cost Savings
Closing costs on a new home typically range from about 2 to 4 percent of the final sales price. However, many builders offer incentives in the form of credits to help buyers pay closing costs when they use a preferred lender. These closing cost credits can be substantial, as much as 3% of the purchase price, and can save you thousands of dollars at the closing table.
Another significant savings comes in the form of lower title fees. Because most builders do so many transactions with their title company of choice, new home buyers who use that same company can expect to see title and escrow fees much lower than resale homes.
Marketplace Homes Expert Tip: See if your builder and title company allow for a mobile closing. During these times, it’s more important than ever to have as little in person contact as possible. With a mobile closing, a notary will come to you! This allows you to complete the transaction in the comfort and privacy of your own home, or the location of your choosing. While this cost is typically around $100, many titles companies will waive this fee if you ask.
Modern Home Design
Buying a new home means that you can choose the floor plan meets your needs now, rather than worrying about a stressful & expensive remodel later. Today’s homebuyers prefer an open floor plan, most often without a formal living space. Newly built homes tend to be nearly 1,000 sqft. bigger than the average resale home, and even the most basic new home usually comes standard with an owner’s ensuite bath. Multi-generational homes are becoming increasingly popular as well, and flex rooms are extremely common. These customizable areas are ready for transformation into movie lounges, office space, playrooms, and more.
Designing a new home to suit your family now and in the future makes it so that you’re likely to stay there longer. Not needing to move again soon can save you additional money in the long run.
Marketplace Homes Expert Tip: If you prefer a more traditional floor plan with formal living & dining spaces, many builders still offer at least one floor plan to suit your needs. You’ll get all of the benefits of new materials & construction, with the layout that works for you.
One of the built-in benefits of buying a new home is the community itself! When families move into a subdivision around the same time, nobody is the “new kid on the block”, and many builders host block parties in newer developments to help owners meet.
Another benefit to new communities is that they typically come with amazing amenities that older ones do not. From resort-style swimming pools and tennis courts, to walking trails and clubhouses, there’s plenty of opportunity to meet your new neighbors and forge lasting friendships.
Marketplace Homes Expert Tip: Many newer communities have their own groups on Facebook. While you’re in the home search process, it’s a great idea to join these groups and ask the current residents any questions you may have about the community and how they like living there. It’s an incredible resource to get feedback directly from those already living there, and you’ll likely come away with knowledge you wouldn’t be able to get from the builder.
There’s nothing worse than putting an offer in on the home of your dreams only to lose it to another buyer. Today’s resale market is extremely competitive in most markets, and it’s not uncommon for homes to receive 100+ offers within days of listing. You heard us right-hundreds!
Since there are far more opportunities, there is less competition with other buyers in the new construction market, and it is incredibly rare to get into a multiple offers scenario. When working with your builder, you won’t need to compete with anyone else for your home. This allows you to focus on the process, and saves you an incredible amount of stress.
Marketplace Homes Expert Tip: Look for close-out opportunities in communities with only a few lots left. Typically, builders are able to offer more incentives to these buyers as they close out new home sales in the community.
While navigating the real estate world in 2021 may look a little bit different than normal, home buyers have an incredible opportunity to take advantage of the lowest mortgage rates they may see in their lifetime. Ultimately, the decision to buy a new construction over an existing home is a personal one. If you take the time to think clearly about what you want in a home, both now and in the future, you’ll be able to set yourself up for success.
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