It’s no secret that buying a newly built home means paying a premium pricetag, but aspiring homeowners are increasingly willing to pay more for a brand-new home. This is due in part to the array of options available to customize new homes, but the biggest reason is that paying more upfront go a newly built home is actually a solid financial investment in the long run. Of the many benefits that come with buying new construction, here are the four biggest:
Buyers usually need to budget to update and renovate any dated features in the kitchens and bathrooms of pre-owned homes. Updated cabinets, light and water fixtures, flooring, and appliances are often necessary to make those spaces appealing for the new residents, and the costs of renovation after closing on a new home are often on par with what a newly built home that is tailored to the homeowners’ taste would have cost. Homeowners who have specific needs such as ADA-compliant accessibility features often find that the necessary alterations to make a pre-owned home liveable cost more than the price difference for a new custom home. Because these changes need to happen before the new owners can settle in, it can take a while for a pre-owned house to really feel like home. Because banks have different lending standards for home buying and for home renovation, homeowners who want to remodel their new home often have to pay out-of-pocket to have the home they really want. In the case of new construction, the cost of having a custom home are all absorbed into the home buyer loan.
It is pretty common for a pre-owned home to pass a house inspection with flying colors, yet still have serious hidden issues that need to be fixed. Months after moving in to such properties, the new owners discover a problem that the inspector didn’t catch. Which brings another problem, because now the new homeowner has to pay out-of-pocket for unexpected repairs. Newly built homes typically include a warranty for the first year. If the slab cracks, the water heater explodes, or the HVAC fails to work properly, the cost of repairs is covered by the home builder, who will return to fix the problem.
Economical Home Maintenance
For the first several years of the homes life, a newly built house costs less to maintain than pre-owned homes. Because everything is brand-new it could be a decade or more before the roof, windows, appliances, or flooring need to be replaced. For owners who emptied their savings accounts to make the down payment and closing costs, this is a major perk. Lower maintenance costs make it easier for new homeowners to rebuild that nest egg.
Home builders and development companies usually offer incentives to buyers who purchase newly built homes. Mortgage companies that build their own properties may offer paid closing costs or materials quality upgrades free of charge like replacing laminate counters with granite or switching laminate floors for tile. For owners buying a new condo, the developer might subzidize the first year of condo association fees for the first year. Buyers seeking a custom-built home often get to choose their lot and landscaping features as well.