Are you in the market for a new home? With the current low supply in the housing market, more buyers are turning to new construction for their next home purchase. At Extreme Investor Network, we understand the benefits and considerations of buying a newly built home.
One major advantage of buying a new build is the flexibility in pricing. Builders can offer incentives such as rate buy-downs, price cuts, and covering closing costs that existing home sellers may not provide. In fact, nearly two-thirds of builders are using some type of incentive to promote sales, according to experts. With incentives like these, buyers have more opportunities to negotiate and save on their new home purchase.
The price gap between existing and new homes has also narrowed significantly. While new builds typically sold for more than existing homes in the past, the median price of a new home is now only about 4% higher than an existing house. This shift in pricing can make new construction a more attractive option for buyers looking to purchase a home in today’s market.
When considering a newly built home, there are a few key factors to keep in mind. Only about 10% of new homes for sale are move-in ready, so buyers should be prepared for different stages of construction when looking at new builds. Additionally, buyers should consider opting for a slightly smaller house to reduce construction and maintenance costs.
Location also plays a significant role in the cost of new construction. Building in more rural areas can be more affordable due to lower regulatory costs and greater land availability. By being open to different geographic locations, buyers can potentially save on their new home purchase.
Lastly, buyers should be mindful of future costs associated with owning a new build. Property taxes on newly built homes often increase after purchase, so it’s important to budget for potential changes in costs. However, new builds are typically more energy-efficient and resilient, leading to lower operating costs in the long run.
At Extreme Investor Network, we provide valuable insights and tips for buyers looking to navigate the new construction market. By considering the flexibility in pricing, narrowing price gaps, and key factors to keep in mind when buying a newly built home, buyers can make informed decisions for their next home purchase.