3 Things to Consider About New Construction
Home inventory is low and as a buyer, you might be stressed out when it comes to searching for a home. Perhaps you have missed out on a few homes or have been out-bid by other buyers. This may have you wondering if building a new home is the best way to realize your homeownership goals.
It can be! But, there are some things you need to consider before you decide on new construction.
- It takes time to build.
How long does it take? The answer is not the same for every buyer, and it varies depending on a few factors, but the average completion time of a single-family home is around seven months. It may take more or less time. Remember, any homebuilding project is complex — the land on which the home is being built, the condition of the lot, the weather, and even the intricacy of the home’s floor plan all play a role in your move-in timeline.
- A new home may cost a bit more.
You get what you pay for, and new is usually worth more, so it can cost more to build new versus buying an existing home. This means you may have to make some compromises on the style of home you build so it fits within your price range. You might also find that you need to purchase a lot of upgrades from the builder in order to really get what you want, and those upgrades can really add up. On the bright side, all your home’s systems, appliances, doors and windows will most likely be highly energy efficient and have a whole lifespan ahead of them before they will need to be replaced. As a result, your heating, cooling and monthly utilities may cost you a bit less, and you won’t be replacing expensive things like a furnace anytime soon.
- Building requires a different type of loan.
You will most likely be dealing with a construction loan and all the permits required with new construction. It is not more difficult -- it is simply a different process than when you buy a pre-existing house. You might be required to carry the construction loan on the building process if the builder does not do this for you. Even if the builder handles getting all the permits, it’s a good idea to understand what is needed to ensure everything is built up to code.
If searching for a pre-existing home is not going well, maybe building a home is something you should consider. You can limit the time it takes by making decisions early, working with your builder for extensive pre-planning and estimates as early as possible, and sticking with the plan in place rather than make changes late in the building process.
New construction may take time and can cost a bit more, but it allows you to create the home you have been searching for.
Interested in new construction? Check our New Construction section for available properties and land.
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