Pros and Cons of Buying a New Construction House
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Buying a new constructions house can provide you customizability and ensure you have a new, functional home when you decide to buy. However, it will come at a steep price.
When buying a house, you can either buy an older home or a new one.
For many, the thought of a new home is exciting. Everything in the home is brand new, and in many cases, you have a say in the design of the home. But there are also some drawbacks to buying a new house under construction, and things you need to look out for.
Jerry's compiled all of the pros and cons of buying a new construction house.
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Pros of new construction homes
Buying a new construction home is a great investment, because a new home usually increases in value quickly over the first few years. You can find some other pros of living in a new home construction below.
One of the best things about a new construction home if you buy one that isn’t built yet is that you can customize it to a certain extent. This means that you can pick the tile, carpet, and other items in your home.
Of course, certain "upgrades" cost more, but it's worth it if you can get those granite countertops, wood flooring, and under-cabinet lighting that you’ve always wanted.
New and up-to-date
If there's one great thing about a brand-new home, it's the fact that it is up-to-date. Builders are required to build the home to the latest regulations, and in many cases, a new construction home has the latest appliances. Plus, don’t forget about upgrades!
No renovations required
With the ability to build a new construction home the way you want it, you can avoid having to do renovations (at least, any time soon).
Eventually, you might want to repaint or replace the carpet. Until then, you can enjoy your home without having to worry about renovating.
The items in a new home construction are covered by your home warranty for at least a year, and sometimes longer depending on the item. A home warranty is especially important as a home gets older.
Cons of new construction homes
Living in a new home construction does have some drawbacks as well. For the most part, these homes are usually located in newer neighborhoods where homes are still being constructed. So, you should expect all of the dust, debris, and noise associated with that. Here are some other cons of living in a new home construction.
They cost more
A new home construction can cost more than buying an older home.
The price of a new home is about $100,000 more than an older home of similar design. Keep in mind that the upgrades you opt for will raise the base price of a new construction home.
Potential for delays
You also have to worry about delays when buying a new home construction. Unless you're moving into a new home that has already been built, your new home still has to go through the construction process.
And while construction can be quick, bad weather or other delays can slow down the construction process. This can cause problems when it comes to timing, especially if you're selling your old home before moving into your new one.
If you need to make changes during the construction process, it can get expensive. Most contractors charge a change fee every time you need to add an upgrade. This is because any changes mean extra work on the contractor’s part, plus you have to pay for the change if it is an upgrade.
When you buy a new home construction, there could be problems with the construction of a home. These range from outlets that don’t work properly to problems with the way things were done in the first place, such as paint quality. These items will go on a list, called the punch list, which the contractor will then come in and fix. But the process can sometimes take a long time.
Buying a new construction home can be a good choice if you're willing to pay the extra money, but keep all of the pros and cons in mind when you're looking to buy a house. Happy house hunting!
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