Pros and Cons of New Construction
More and more buyers today are considering new build. It’s new, shiny and they aren’t in a major bidding war with other buyers on that one house. With all the new developments popping up around Salt Lake City getting into a new home may seem easier to the average buyer.
I thought today we should discuss the pros and cons of new construction. As an FYI- if you are considering a new build, as a reminder, you should bring your agent with you the first time they walk into the model home. Be your clients’ advisor even with a new construction.
Pros of New Construction
- Custom-fit: Customizing your new home is the biggest pros of building new construction. It gives your client the chance to design almost every inch of space to meet your needs.
- No renovations: When your client builds or buy new construction, there's no need for updating because your home will be up to date with materials, colors, and design from day one. Also there is no issues with repair cost.
- Builder warranties and financing incentives: Many builder warranties will cover anything that happens to the home within two years of the date of purchase.
- That new home smell! Moving into a new home knowing that no one has ever lived there is an amazing feeling — plus, major systems and appliances won’t need replacing anytime soon.
Cons of New Construction
- Cost: All that custom stuff? It comes with a price. On average, it costs around 20% more to have a new home built than to buy an existing one. Remember many builders don’t include the upgrade fixtures or carpets.
- Limited options: Unless you build an entirely custom home, you may be limited in your design, floor plan, and finishing options.
- Fluid sticker price: Because of delays, change orders, and added costs, it's hard to know how much your new home will cost until the welcome mat is out. Especially now with construction delays, supply issues, you need to make sure your client’s cost is the same when initially discussed in contract. Also, as an agent, check the contract to see if there is no addendum or clause about additional cost due to delays, etc.
- Timeline: You can be kicking your feet up in an existing home in as little as 30-45 days. New construction? It can be stretch out to at least 3-12 months.
- All Builders Are Not Equal: While the majority of builders do quality work, there remains the chance that you’ll come across a builder with less proven experience, and you need to be wary about who your client choose to build with. When choosing a builder for your new construction home, look beyond the pictures on their website and seek out more information to ensure you’re making the right choice. Check out homes they’ve completed, talk to homebuyers who have previously built with them, and make sure there are no major complaints filed against them. You shouldn’t have trouble finding a great builder for your client’s home; you just have to do the work to make sure whoever you go with will deliver what they are looking for.
- Other cost… Many resale homes already have the window coverings, yard, fencing, etc. That can add an additional $25K.
What do you prefer older homes or new construction? Email / Contact us at nancybergmanrealtor@gmai.com