New Construction Homes

By Darin Windham, Realtor
Keyfinders Group RE/Max Alliance

New construction homes are becoming more popular again. But there are some misconceptions about new homes that prevent many buyers from taking the plunge.

Here are some common myths behind new construction:

Myth # 1: New construction homes are always more expensive.

While the median price of new construction homes is typically higher than that of resales, there are savings elsewhere to consider. With a new home, there’s a lower chance that you’ll have to pay for expensive repairs within the first couple of years, such as replacing the AC, furnace, hot water heater, etc. A new roof for instance could cost 10 to 20 thousand! New construction homes typically come with a warranty, which will cover most repairs in the unlikely event there is a problem.

Myth #2: Financing new homes is hard.

New construction homes can be easier to finance than an existing property. And while builders may offer incentives to your clients to use a recommended lender, referring them to another local and reputable lender enables them to compare their offers.

Myth #3: There’s no way to inspect a new home.

Home inspections are a common component of buying a home, including new builds. If you desire, you may have a third-party inspection on the home before closing to check for any possible defects. While working with a reputable builder can mitigate the risks here, an inspection is still standard practice.

Myth #4: You don’t need to use a real estate agent when purchasing new construction.

As with any real estate transaction, you’ll want to negotiate on the price, contract terms, and options, and reach an agreement that you can feel good about. Having a realtor to represent you as a buyer is considered a best practice, even when you’re looking at a new construction home. If there is an agent on site in the subdivision or area of your new construction, they can certainly assist you in the buying process, but their allegiance is to the builder, not you the buyer. Builders will be happy to work with your real estate agent when you include them early in the process.

Myth #5: Buying a new construction home takes too long.

It’s true that it takes time to build a new home and you will need to do some planning in advance. That said, most reputable builders can complete a home in less than a year. In fact, U.S. census data shows the average time needed to build a home is usually between 6 to 8 months. However, this will shift depending on the supply chain, labor, and materials.  Respected contractors are more likely to complete your home within a reasonable time frame, so it really pays to choose carefully and to go with a trusted name. 

While the market is cooling down a little, we are still in a seller’s market, and inventory remains low. New construction is becoming more popular and could be a good option for you as a buyer. Let someone at Keyfinder’s Group at RE/MAX Alliance help you find your dream home!

Darin can be contacted at 256-652-9032 or darin@keyfindersgroup.com
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