New construction accounted for 26% of home sales in the first quarter of 2021

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If you have been in the market to buy a home, you may be fully aware that how little inventory are available. In turn, you may be tempted to buy a newly built home if you cannot find an existing property for sale that suits you. In fact, newly built homes accounted for 26% of all single-family homes for sale in the first quarter of 2021, according to Redfin. But is it worth buying new construction? Here are the pros and cons.

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Benefits of new construction

What are the advantages of new construction? Have a home you have never lived in.

When you buy new constructionyou get a home in pristine condition, and you also get a home that is unlikely to require major renovations for at least a few years after you move. In fact, newly built homes usually come with a builder’s warranty that protects you from at least a year’s manufacturing issues. And often, you’ll have extended warranties on individual devices that give you extra protection. (For example, a water heater may have a five-year warranty, as well as an air conditioning system.)

In addition, in some cases, the purchase of new construction means the right to vote in the construction process itself. You may be able to choose what type of tile you want in your kitchen, how you want your bathroom to look, and what kind of countertop material you get. This not only means getting a home that truly suits your taste, but it also saves you the trouble of spending money on repairs

The reverse side of new construction

The main disadvantage of new construction? The cost is involved. Due to a serious shortage of sawnwood, which is a key material in the construction of houses, the average a new building costs about $ 36,000 more this year than usual. It’s not really pocket change, and it means you might have to bring much larger change with you. mortgage to finance this house – and deal with higher monthly payments after moving in.

Another problem you may face with new construction is sub-par quality. The old adage “they don’t build them the way they used to” is known to apply to new construction, although some builders are more respected than others. If you check your home appropriately, you can avoid this problem (especially if you ask your builder to specify in the contract what materials will be used in your home).

Finally, new homes may be delayed. If you’re looking at a home that’s already fully built and ready to move in, this won’t be a problem. But if you’re buying a home that you can customize, don’t be surprised if your closure is delayed. This can be problematic if you are faced with a situation where your lease is about to expire or you are selling an existing home and need to close it before your new home is ready.

Given the scarcity of existing homes, many buyers today are turning to new construction to fill this gap. While this may be a good option for you, be sure to consider the pros and cons before making your decision.

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