When it comes to buying a house, the million dollar question is: Do you buy a new home or existing home?
Home buyers can be hesitant to build a new home over buying a home that’s being resold. However, this typically stems from fear of the unknown. Essentially, home buyers haven’t been equipped with all the facts when it comes to new home construction.
So we’re debunking popular common held beliefs when it comes to building a home vs. buying older real estate, so you can feel educated when making the right decision for you and your family.
THE ASSUMPTION THAT NEW CONSTRUCTION HOMES WILL EXCEED YOUR BUDGET
The main factor driving a home buyer’s choice between new home construction and an existing home is price point. Home buyers automatically assume that building a new home will exceed their budget.
However, there are a few contingencies that the home buyer should take into consideration:
- Home Buyer Incentives: Unlike buying an existing home, home builders often offer lucrative incentives to help the home buyer up front. Incentives can include closing costs, upgrades, free appliances or other attractive offers that make the home more affordable and/or comfortable long-term.
- Less Repair Costs: When home buyers build a new home, they are investing in the ease of a turnkey home, which often comes with fewer unexpected repairs than buyers of existing homes.
- According to Zillow’s 2019 Consumer Housing Trends Report, more than 8 in 10 (83%) of existing home buyers say they repaired or renovated their homes within the first year of ownership.
- More than half (54%) had to make a major repair or renovation within the first month of getting the keys.
- Compared to new construction buyers: 48% of buyers who purchased a brand-new home in the past two years still haven’t had to make a single repair or renovation.
TIMING & HASSLE TO BUILD A HOME:
Home buyers think that buying a new home means the hassle of choosing a lot, picking designs and features and waiting for the home to be built. Although those reasons are why a lot of home buyers choose to build a new home, others need a more immediate solution for their family. Therefore, they think their only option is existing homes.
The reality is that more than half of a home builder’s inventory is quick, move-in ready homes. Meaning, these home are already built yet brand new and waiting for their forever family. The beauty of buying a quick, move-in ready home is that you get the newness of a home with the move-in timeline of an existing home. It’s a win/win!
To view our available quick, move-in homes, click here.
CONCERN ABOUT QUALITY OF CONSTRUCTION OR MATERIALS
According to Zillow, 26% of buyers who didn’t follow through with a new construction home had concerns about the quality of construction or building materials.
Over time, residential building codes and materials have significantly improved to ensure top-notch safety, design and construction of a new home.
Existing single-family homes, town homes and other real estate were likely built 10, 20, 30+ years prior to a home buyer purchase. Although the home likely sustained numerous updates throughout the aging of the home, in addition to quality inspections before closing on the home; a home buyer really never knows the state of an older home they are inheriting
HOME BUYERS THINK THAT SOME COSTS AND UPGRADES FOR NEW HOME CONSTRUCTION WEREN’T TRANSPARENT UNTIL THEY PURCHASED THE HOME
To be exact, 26% of home buyers who bought a new home in 2019 say that they did not understand the full breakdown of costs prior to building a new home.
We are unsure of the home cost transparency that’s afforded by other home builders; however we pride ourselves on handling the home buying process as if it were us buying the home. Our New Home Sales Consultants provide price sheets and itemized personalization costs, as well as set clear expectations for the home buyer during model and showcase home walk-throughs. Costs and fees pertaining to lots, upgrades and everything in between, in addition to when each installment is due throughout the process is communicated from the beginning.
HOME BUYERS BELIEVE THAT THEY CAN’T GET THE SAME “CHARM” THAT COMES WITH AN OLDER STYLE HOME
The good news is with a new home build, you get to make your new home what you want! With a variety of floor plans, exterior colors and features, design selections, unique upgrades and more, you get to personalize each part of your home. The uniqueness you infuse into your new construction home will give it the exact “charm” you were envisioning.
Additionally, although your new home may not have the same look as an aged home, the communities we build in are mature and preserve a beautiful and homey feel.
HOME BUYERS FEEL THEY MAY BE OVERWHELMED BY THE UNKNOWN OF THE HOME BUILDING PROCESS
With any home builder, the New Home Specialist should create a road map for the home buyer that includes the following to help create transparency and trust and set expectations up front.
- Expected timeline
- Cost breakdown
- Design Studio Selections
- Home Owner Walk-Throughs and Orientation
- Estimated Closing
- …and everything in between.
In general, the home building process looks a lot like the below:
- Get a pre approval letter. Special incentives offered by using our preferred lender, Vision Lending.
- Pick a neighborhood
- Pick a floor plan, pick your structural options
- Pick from our available lots
- Sign the contract. We can conveniently send you our contract via email so you can sign from anywhere in the world.
- Pay builder deposit. We can also email you an invoice for your builder deposit to pay online. The builder deposit amount will vary depending on the sales price amount.
- Attend your design appointment within 2 weeks of signing your contract. We can also do a video call so you can design your home remotely. We can also email you an invoice if you want to add any additional items.
- Meet with the builder 4 times throughout your home build process.
- Sign your closing documents at the attorney’s office. Congratulations on your New Home purchase!
- Transfer utilities in your name
- Register with your neighborhood HOA for access to amenities
- Warranty will follow up. Our warranty team will be there for you with your 1 year builder warranty.
Throughout the home buying process, the home buyer should also have constant communication with either their New Home Specialist or their builder so they know where their home build stands at any given moment.
HOME BUYERS THINK THAT THE LOANS, SPECIFICALLY FOR NEW CONSTRUCTION, WILL BE A HASSLE OR CONFUSING
We offer our home buyers our preferred lender, Vision Lending. Our Vision Lending loan officers, Chung and Jason, will handle your mortgage pre-approval that will give you a realistic idea of your down payment and budget, and give you more negotiating power when you make an offer.
Our home buyers have a peace of mind through the process as our preferred lender goes above and beyond to hold their hands every step of the way.
So what do you think, should you buy a new home or existing home?
If you’re in the market for a new home and are trying to decide whether buying a new home or an existing home is right for you, we’d love to have a conversation with you. We’ll be happy to answer any questions about the home buying and home building process, so you feel like you have full clarity when it comes time to make an offer – on new home construction or older real estate.
Feel free to fill out the form below and one of our friendly and knowledgeable Online Home Specialists will be in touch with you shortly.