Is It Better to Buy New Construction or an Existing Home?
Whether you’re relocating for work or the military or want to find your forever home to raise your children, navigating the housing market amid fluctuating interest rates can be daunting. Buying new construction presents a unique opportunity to increase your buying power and mitigate uncertainties.
With new construction, you can often secure favorable financing options and lock in lower interest rates, allowing you to stretch your budget further. Additionally, newly built homes come with modern features and energy-efficient technologies, reducing maintenance costs and enhancing long-term savings.
By leveraging these benefits of new construction homes, you can confidently invest in a house that not only meets your needs but also provides stability and financial peace of mind in uncertain times.
5 Benefits of Buying a New Construction Home
While the sticker price of buying a resale is often less than that of a new home, that doesn’t always translate into savings. Older homes often require renovations, safety updates, and landscaping — all of which are included in the sale price of new construction.
Still, you may be asking: Is new construction a good investment? While there are pros and cons to each, here are our top benefits to buying new construction.
1. More Financing Flexibility
Buying a new construction home often provides more flexible financing options compared to purchasing an existing home, offering several advantages that can benefit homebuyers in various ways.
For example, new construction homebuyers may have the ability to buy down their interest rate, which can result in significant long-term savings on mortgage payments.
Builders and developers often partner with preferred lenders who may offer incentives such as interest rate buydown programs, where buyers pay upfront to reduce their interest rate for the duration of the loan. This can result in lower monthly mortgage payments, making homeownership more affordable and increasing purchasing power.
Additionally, utilizing a trusted lender when financing a new construction home can provide opportunities to lessen upgrade deposits. Trusted lenders who have experience working with builders may offer financing options that allow homebuyers to roll the cost of upgrades and customization features into their mortgage loans.
This means that homebuyers can add more features to their home for less money upfront, spreading the cost over the life of the mortgage rather than paying for upgrades out-of-pocket during the construction process.
Many builders also offer assistance with closing costs as an incentive to attract buyers. This allows homebuyers to save money upfront and potentially negotiate better terms with their lender, resulting in a more affordable and streamlined homebuying process.
2. Fewer Home Maintenance Costs
There’s just no getting around it: New homes are built to last. They’re built with new materials, meaning less maintenance is typically required. Plus, structural components as well as appliances often come with limited or lifetime product manufacturers’ warranties.
With a new construction home, you can count on everything from appliances to the roof to be brand new and virtually repair-free. This is a huge perk and can save you thousands of dollars over the years — and give you peace of mind, which is priceless.
No one wants to move into a home and immediately have to replace the roof, water heater, or furnace. A new home insulates you from these expensive surprises.
3. Adherence to the Latest Building Codes
In the same vein, buying a new construction home offers the assurance of adherence to the latest building codes, providing peace of mind and long-term safety for homeowners.
Newly built homes are constructed with strict adherence to current building regulations and codes established by local authorities and industry standards. This means that they incorporate the latest advancements in structural integrity, fire safety, energy efficiency, and environmental sustainability.
Builders of new construction homes are required to obtain permits and undergo inspections at various stages of construction to ensure compliance with building codes. These codes are regularly updated to reflect advancements in construction practices, technology, and safety standards.
By purchasing a new construction home, buyers can be confident that their property meets or exceeds these rigorous standards, reducing the risk of structural issues, safety hazards, and costly repairs down the line.
4. Ability to Pick Your Lot and Home Plan
Buying a new construction home offers the distinct advantage of having the ability to pick your lot and home plan, providing a level of customization and personalization that is not typically available with existing homes. This connection empowers homebuyers to tailor their living space to their specific preferences and needs.
Selecting your lot allows you to choose the location and orientation of your home within the community. Whether you prefer a corner lot for additional privacy, a larger lot for outdoor space, or a specific view, buying new construction enables you to prioritize your desired location within the development.
Additionally, having the flexibility to pick your home plan allows you to design a living space that perfectly suits your tastes and requirements. From the layout and square footage to the number of bedrooms, bathrooms, and additional features, you have the opportunity to customize every aspect of your new home to align with your lifestyle.
By being involved in the selection process from the outset, you can feel confident that your home reflects your vision and provides a sense of pride and satisfaction for years to come.
5. Virtually Endless Personalization Opportunities
New construction homes often come with a wide range of customizable options and upgrades, ranging from architectural styles to interior finishes and fixtures.
Homebuyers have the freedom to choose from various design options, such as cabinetry, countertops, flooring materials, paint colors, and lighting fixtures, enabling them to create a home that reflects their individual tastes and aesthetic preferences.
Also, many builders offer flexibility in room configurations and layout modifications, allowing homebuyers to optimize the functionality and flow of their living space to better suit their needs. Whether it's adding an extra bedroom, expanding the kitchen, or creating a dedicated home office or entertainment area, the possibilities for customization are virtually endless.
The process of buying a new construction home typically involves direct collaboration with the builder and design team, providing homebuyers with a hands-on experience and the opportunity to express their vision at every stage of the construction process. This level of involvement ensures that the final product reflects the homeowner's expectations and personality.
Frequently Asked Questions About the Benefits of New Construction
Are new construction homes worth it?
Whether new construction homes are worth it depends on individual preferences, priorities, and circumstances.
Generally, new construction homes offer several advantages, including modern amenities, energy efficiency, and customization options. They often require less maintenance and come with warranties for major components, minimizing stress for homeowners. Also, new homes may appreciate faster in value compared to older properties, especially in growing markets.
These benefits may be especially important for growing families or individuals who relocate often, such as military personnel who are assigned to new stations.
New construction virtually eliminates the need to spend your weekends doing home renovation projects. Plus, if and when it’s time to move, your newer home will be more likely to sell for more than what you paid for it, giving you a nice cushion for the downpayment of your next home.
Does new construction increase property values?
New construction typically increases property values by attracting buyers seeking modern amenities and energy-efficient features, thus driving up demand in the area.
Additionally, things like the improved aesthetics of the neighborhood, the need for less maintenance on new homes, and warranties contribute to the overall appreciation of real estate values.
Do new construction homes appraise higher?
Yes, new construction homes often appraise higher than older properties for several reasons.
New construction typically incorporates modern features, materials, and design elements that are valued more highly by appraisers and buyers alike. These may include energy-efficient appliances, updated building materials, and contemporary floor plans.
Additionally, the lack of wear and tear typically associated with older homes can also contribute to the higher appraisal value of new construction properties.
What are the benefits of using a realtor to buy new construction?
Using a realtor to buy new construction offers numerous benefits, including access to local market knowledge and negotiation expertise, as well as established relationships with builders, providing access to exclusive incentives and promotions.
Realtors guide buyers through the entire process, from selecting floor plans to navigating inspections and walk-throughs, ensuring informed decisions and fair treatment.
With a realtor's representation and advocacy, buyers gain peace of mind, knowing they have an experienced professional by their side to make the process smoother and more rewarding.
Leverage Rush Residential’s New Construction Benefits
Purchasing a home is one of the largest investments any of us will make.
When you buy a Rush home, you’re not only getting a beautiful new home of the highest quality, but you’re also unlocking incredible incentives and financing options. Your new Rush home comes with a 10-year structural warranty, a 2-year systems warranty, and additional manufacturer warranties for your appliances, roof, siding, windows, paint, and more.
Additionally, through Rush’s partnership with Community One Financial and Caliber Home Loans, Rush homebuyers have access to top powerhouse lenders. Check out our FREE-FI program, giving you a free refinance option 6 to 8 months after you’ve purchased your home.
Rush homebuyers are also able to take advantage of our Freestyle $20K Your Way* program. Through this limited-time-only promotion, Rush homebuyers who buy a qualifying home will receive $20,000 to use on interest rate buy down, closing costs, upgrades, or an interior shopping spree.
Talk to our sales team to find out what’s available for the home of your dreams.