Whether you’re currently shopping for your dream home or your next investment property there’s a good chance that you’ve considered a new construction property, or a “new build” as they’re often called. But what are the pros and cons of this product? Depending on your personal situation some cons may actually be pros for you and vice versa! Let’s explore!
Let’s start with the CONS.
Pool: If having a pool is a non-negotiable for you, then you may want to lean more towards purchasing a resale property. Finding new build communities that offer private pools can often be a challenge. The few that do offer pools are often at much higher price points. If the community allows it, you can always build a pool later. However, buying a quality resale home with an existing pool will almost always be the cheaper and easier route.
HOA’s (Homeowners Association) and CDD’s (Community Development District): Although not all new construction communities have these fees, a lot of them do. The HOA is often low to attract buyers, but can change over time. If you have specific questions about these fees be sure to ask your agent or feel free to send me an email. Although some of these fees are inclusive and reasonable, that is not always the case, so being aware of what they cost and what they include is imperative for anyone purchasing.
Time: On average it will take a builder about 6 months to complete your home. Whether you’re relocating for work, wanting a change of scenery, or just tired of paying your landlord’s mortgage, you may have to wait a little longer if you want a new build. If you’re okay with not customizing your home, some builders may have move-in ready inventory that is often available for a quick sale, so always be sure to check before eliminating this option!
Always end on a high note! PROS.
Maintenance: When listing a resale home, the number one question I get is “What is the age of the roof and AC?”. A valid question, as these are some of the highest expenses a homeowner should expect. When you go to a new build you know that these items are brand new and under warranty. Typically, this will cover anything as minor as a chipped tile all the way up to an AC replacement if needed during this period.
Financing options: If you have a pre approval with your bank or preferred lender you can still purchase a new construction home by this means. However, in most cases each builder and sometimes community will have a preferred lender that they are working with. If you decided to finance the home through this lender they often offer no/low down payment options and other major incentives.
Customization: If you buy a resale, of course you can hire a contractor or roll up your sleeves to transform the home in any way you’d like. When buying a new build, you often have the ability to do this before a single brick is put up. Builders usually have a few base options as well as optional upgrades. By purchasing this way, you can often save a lot on a potential rehab budget.
BONUS TIP!
Always bring a Realtor! Nothing upsets me more than an owner that bought a home without representation. There is a common misconception that you won’t get as good of a deal, or it will cost you in some way to work with an agent. Both of these ideas are completely false. Your agent should be finding the homes for you, negotiating for the best deal, reviewing contracts, and overseeing the deal throughout the process.
If you have any questions about new builds or about Real Estate in general feel free to call or text me at (407) 538-2096 or to email me at Lucas@rentalrealtygroup.com .
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