As a future homeowner, the option to purchase a newly constructed or existing home may cause a bit of a dilemma. Although twice as many people prefer new homes to existing homes, there are still important factors to consider when deciding to purchase new construction versus and older property.
Regardless of whichever option you may choose, make sure that you speak with a lender first prior to beginning your search. This will help tremendously in determining your budget for a mortgage and the maximum purchase price that you can spend on a property. It is also wise and beneficial (at no cost to you) to reach out to a buyer’s agent who will understand your needs and be knowledgeable about the current market and negotiation practices.
Before you settle on a property, here are some of the pros and cons of buying a newly constructed house versus an existing home.
You can customize new construction. Personalize your future home with a unique design and all of the fixtures and amenities that you desire (including lighting, flooring, granite, stainless steel appliances, and a custom color palette). This will allow you to have modern features such as walk-in closets, spacious bathrooms, and an open, eat-in kitchen. You’ll also save on having to do repairs for a few years.
But your home may lack the charm, character, and history of an older home that is ready to move in. You’ll also have to regularly check-in with the builders to make sure the home is constructed according your standards. This can be especially stressful because you won’t know what the final product will look like until it is complete which will take months and can often be delayed due to weather conditions.
As one of the first people to move into a new neighborhood, you’ll be able to choose your lot. The downside is that newly constructed homes are generally situated on smaller lots than older homes, which can mean significantly smaller yard space between you and your future neighbors.
Speaking of neighbors, you may not have any for quite some time. New construction, means that your neighborhood is still being developed and often times these new homes are located farther away from shopping areas and entertainment.
An older home is already situated within an established neighborhood which can provide access to community recreation (pools, dog parks, gyms), local grocery stores, and well-known schools.
New construction may come with loan incentives. You may be offered a deal to pay your closing costs, down payments, and even moving expenses.
Some builders may even entice buyers with luxurious perks, such as a car or a getaway vacation. Remember you’re searching for a new home not free gifts. Make sure you’re communicating with your agent. In North Carolina, builders aren’t obligated to follow standard state contracts and can have their own drafted by an attorney which may result in a lesser chance of negotiation.
Consider some of these key points when contemplating your decision and do your research! Both options come with advantages and disadvantages, which differs depending on a buyer’s needs and budget. Furthermore, it is best to remember that your home is an investment. This will be a place where you want to create memories, enjoy your space, and love your neighborhood. To learn more, check out our video on The Pros and Cons of Buying New vs Existing Home!
If you’re thinking about buying a home and you don’t know where to start, Perfect House Realty is here for you! The team at Perfect House Realty are committed to helping buyers and sellers in the Charlotte, North Carolina area understand their options. Our dedicated and trusted agent, Qulia Bryant, will get the job done. Call us at 833-704-HOME or find your dream home online.