Updated: Apr 24, 2022
New construction homes are usually very appealing as you get to choose the countertops, appliances and other features the way you like it. Though it is very exciting to buy a new home in pristine condition, it is very important to educate yourself on what you are getting into. It is important to understand the whole picture and not make decisions based on the appeal of the model home. Some builders may allow you to choose the layout, design, customized cabinetry and doors.
Pros of buying a New construction home
Ability to personalize and customize
Depending on the builder, you may be able to choose your own floor plan, layout and design that reflects your taste. Though, there might be certain parameters and restrictions to be followed when it comes to the exterior of your home. You may be able to select the countertops, appliances, floors, doors, cabinets according to your budget. Sky is the limit when it comes to the design and layout options you may personalize and make your dream home true.
Many homes are constructed in an energy efficient manner which in a long run may save lot of money in electricity or gas bills. this may help offset the higher cost of a new construction home. Some of the benefits of the construction of energy efficient homes are
Vinyl windows have better energy efficiency than windows with wooden frame because of the insulation it provides and they need very less maintenance as they don't need painting or scraping.
Many new construction homes use insulation materials like cellulose, fiberglass etc between walls which may help reduce the energy bills.
Cool roofs are being installed in some new construction homes which has a reflective material and reduces the roof heating up and maintains the home temperature.
The energy efficiency may also be obtained by installing energy efficient appliances, energy efficient lighting etc.
New construction homes usually come with a Builder's warranty and coverage and the length of coverage may vary depending on the builder. Usually, the components like siding, stucco, drywall, paint, doors are covered for the first year. The coverage provided for plumbing and electrical systems are usually 2 years. Some builders may also give 10 years warranty if the building has any major structural defects. Homes other than new construction might also have home warranty usually for a period of one year, but the coverage provided by builder's warranty is extensive.
Less maintenance Costs
New construction homes have very less maintenance costs in the initial few years. Many builder's warranty include full structure warranty for a short term and long term warranty on the exterior. warranty may provide the maintenance for your home in the initial years like premature failure of the home's systems and structures.
Modern floor plan
Many new construction homes have modern floor plan which has a open floor concept which enables efficient utilization of the space available, very appealing aesthetically, gives plenty of light, lots of space not only enables spacious rooms but also lots of room for customization according to your taste.
Up to date
When buying a new home, the updates and standards and features of the building are up to date. The community where the home is located may also have a lot of up to date features. Amenities such as swimming pool, club house, walking trails, tennis courts etc which might be very appealing and give high standard of living.
Cons of buying a New construction home
The market value of the existing homes depend on the factors such as size, quality, location. But, in case of new construction homes, there are some additional costs such as utilities, driveways, sidewalks, upgrades on the cabinetry, doors etc that might be added on to the original cost which might result around10-20% increase than the cost of initial home price.
Landscaping and Exterior
The landscaping may not be very appealing because they might have a barren appearance and lack green belt as the area is still developing. Your home's exterior may lack a unique charm or character that reflects your taste because all the homes in the community are most probably built in a look alike manner.
If the construction is delayed due to bad weather or any other reasons, it may be delayed for months due to an unusual rainy season. It might be really frustrating if you decide to rent a place until the construction is finished and the extra expense adds on to your budget.
Lack of parking and Longer commute
New construction homes might have very little parking space as the home are very close to each other and also have small lots. Small lots mean there are less space in backyard for the kids to play and the homes are closer which may cause a lack of privacy. The parking space for the guests visiting your home might be very limited. New construction homes are often constructed where the bare lands are available and they may be located distant from the work place, schools, shopping etc which adds on to the commute.
Things to consider when buying a New construction home
Builder's quality of past projects - You might need to analyze and research before deciding on buying a new construction home regarding the quality, design or any other controversies of the past projects. You may look at the online reviews or testimonials regarding the past projects, you may also visit the past completed homes of the builder to get an idea of the standard and quality of the home built.
Research the neighborhood - You may drive around or take a walk on the neighborhood to see the amenities available on the neighborhood, Check regarding the rules and regulations of the Homeowners association. It is advisable to know about the zoning laws of the neighborhood as they tend to change.
Know about the warranty and extra charges - Warranties are a great way for the builders to guarantee the standard and quality of the work done in the home. It is very important to know about the items included in the warranty and the process of claiming the warranty before buying the home. To utilize full potential of the warranty, you may perform a home inspection on the 11th month after you buy your home, so that any repairs noted will be covered by the warranty (usually the warranty is given for a year).