As the Mat-Su Valley has grown, new construction has boomed, and many clients are deciding between buying new construction or an existing home. Many people assume that new construction is better simply because it is new, but there are pros AND cons to buying in a new neighborhood. Today we want to share our list in the hopes it will help you in your home search!
Pros of Buying New Construction
Personalization
Do you love making decisions? Do you want to choose finishes and create a home just to your taste? If so, then a new construction home may be perfect. When purchasing new construction, the builder has their specification, but you get to choose finishes that reflect your tastes, preferences, and personalities if you buy during the build. Some of these options will increase the purchase price, but you end up with a home that is your style.
Squeaky Clean
A brand new home means that you are the first people to live there! You cannot get much cleaner than that! The builder meticulously cleans new houses, so when you walk through the door, there are no unpleasant surprises that will require you to roll up your sleeves for a deep clean.
No Projects or Updates
When purchasing an existing home, you will likely have a list of changes you want to make. Paint, flooring, and fixtures are just a few projects that can rapidly add up. The projects are not daunting for some buyers, but others do not want to fill their weekends with home improvement activities. A new home allows you to choose your finishes, and the builder takes care of the projects. New construction might be perfect if you want to move in, unpack, and be done!
Energy Efficient
Utility costs are always a concern for homeowners. New energy-efficient houses can make a big difference in the monthly utility costs of being a homeowner. New construction homes are more energy efficient because of vinyl windows, new door trim, seals, and better insulation between walls to keep out drafts. If you want to move right into an energy-efficient home, then new construction is the way to go!
Warranties
When purchasing a new construction home, the builder will typically offer warranties that would not be available on an existing home. Many home builder warranties cover anything that happens to the house within two years of purchase. Homebuilder warranties can vary, so check reviews and ask around the community before you buy.
Cons of Buying New Construction
Cost
The average cost for a new construction home is about 20% more than an existing home. Many buyers are OK with the higher price because of the benefits of purchasing a brand new home. When looking at the builders model, one thing to consider is that the show home will be the best option available. It will have every bell and whistle and showcase the most excellent finishes. Always work with your real estate agent to help you through the process and keep your expectations in check, especially on custom homes.
New Landscaping
If you love the look of mature landscaping, then a new construction neighborhood may leave you disappointed. Since new developments often start with a leveled piece of land, it takes a while for trees, shrubs, and plants to grow. Some new neighborhoods will offer an option to add landscaping to your yard for an additional cost, but it will still take time to mature.
Established neighborhoods tend to have much larger trees, shrubs, and vegetation. It has been growing for years, if not decades! So, depending on how you want your neighborhood to look, new communities may feel a little bare.
Standard Options
While you can customize your new construction home, there are limits to your options. New construction does not mean it offers the same customization level as if you purchased land and built a 100% original home. Builders will stick to their customization as it decreases the chance of defects and time spent learning new installation methods for new products. So, if you have a particular aesthetic you want, you may not be able to achieve that with the options that a new construction home offers.
Timelines
Many people find buying an existing home is the best option because waiting for the construction of a home can be unpredictable. If you need to be in a house quickly, then new constriction may not be feasible. Purchasing an existing home can get you moved in within 45 days, while new construction can take months. Consider your time frame when starting your home search process.
Possible HOA
New construction neighborhoods are much more likely to have a Homeowners Association (HOA). If you move into an existing neighborhood with an HOA, you will be able to review the rules before you decide to buy. An existing HOA has a process for adding new regulations that involve voting to amend the rules.
A new development tends to have smaller lots with more regulations than older communities. So, the HOA tends to have stricter rules from the start to maintain the cohesiveness of the neighborhood. If you would like to learn more about the pros and cons of and cons of an HOA, check out this article.
I have been in the real estate and mortgage business for many years! One of my favorite parts of both industries is being able to view the homes that my clients fall in love with. It is an honor to hear all the things they love and their dreams for their future in the house. While there are pros and cons to new construction and existing homes, we hope you find the perfect property for your dreams! If you need assistance securing a mortgage, get in touch! We are happy to help you find the ideal financing.
Alaska Mortgage Momma is a proud team member of First Rate Financial.
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