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When house hunting, you may be torn between buying a previously owned home or brand new construction. With the anticipation of a busy buying season this upcoming spring, it’s understandable why a person may want to forgo fierce competition or bidding offers. To help you make an informed decision, let’s take a look at some pros and cons to buying a new construction home.
If you’re in a rush to move, building a new construction home may not be for you. The building process can take anywhere from three months to just under a year—and that’s without major obstructions. Building can be delayed because of weather, material supply delays, design choices, or various other inconveniences.
New construction may have a higher price point than older homes. This is due to the cost of new materials, permits, land expenses, builder scarcity, and how many customizations a home may have.
Buyers may find that new construction homes are built further away from other things. Land typically costs more if it’s closer to amenities, such as parks, grocery stores, schools, and city centers. This could increase your commute time and gas spend.
Home repairs can be expensive. According to Angi’s 2023 State of Home Spending Report, the average home improvement spend was $9,542 per household in a single year. Purchasing a newly constructed home means everything from the windows and insulation to appliances and HVAC systems are all brand new. This lowers the risk of repairs and maintenance within the first few years, allowing peace of mind and the chance to save money.
New construction homes allow homeowners to get exactly what they want without waiting for it to come onto the market or losing the property to a higher bidder. Depending on when you go into contract, you may have the chance to choose finishes, paint colors, and even appliances.
With brand new appliances and features, your home is most likely built with energy efficiency and safety in mind! New construction homes are designed with the latest in home technology and efficiency. New windows, energy efficient lights, Energy Star certified appliances, and improved insulation leads to less energy loss through older HVAC systems or poorly insulated spaces.
At Homestead Funding, we have a variety of loan options for our borrowers. Whether you’re purchasing new construction or a pre-existing home, planning a renovation, or looking to refinance, we’re here to help! Contact us today!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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