The Pros and Cons of Purchasing A New Construction Home

Thinking About Buying A Brand New Home in San Diego? 

House hunting can be an awesome adventure and touring model homes can be even more exciting. There is something about those shiny new, energy-efficient stainless steel appliances, open floor plans, customizing and choosing your favorite flooring, cabinets, countertops and window coverings.

But is it the right home purchase for you?

New Construction VS Resale

What is new construction?

A home that hasn't been occupied, where the seller is typically the builder.

What is resale?

Not considered new construction, someone has previously purchased the home and is now reselling.

There are three different ways that a new home can be purchased:

1. A home already built on spec
2. A semi-custom home built as part of a development (you can choose from a select palette of finishes and upgrades)
3. Custom home designed & built to your specifications

Every home buyer has different preferences...if you aren't sure whether or not buying a new home is right for you start with a pros and cons list. We can help your brainstorm process by listing the most obvious advantages and disadvantages of new home construction.

New Home Construction PROS

🔨 Add Your Personal Touches - with new construction the work is done for you, the only finger you have to lift is pointing to the type of upgrades you would like. Depending on your contract, upgrades could include: countertops, showers and tubs, carpeting, lighting, window treatments, paint, appliances and landscaping to name a few.

🔨 New home design elements - the builders do the research for you, they design layouts that are functional. Some builders have even integrated technology offering the "connected home" feature. Have you seen the new homes at The Village of Escaya? Brookfield Residential builder integrates the Apple HomeKit technology allowing future residents to control lights, locks, thermostats and blinds using their voice, or the Apple Home App. Read all about that here: These San Diego Homes Come Equipped with Apple Approved Upgrades

🔨 Not much maintenance - brand new appliances, plumbing, heating and air you should be repair free for at least a few years. Tip: Don't forget a home inspection is just as important on new home construction as it is on a resale home.

🔨 Concessions - a seller concession is an amount of money paid toward closing on your behalf. Buyers may be able to squeeze more out of a home builder than an individual seller. I recently read an article by USA Today that Lennar will help pay student loans so they can afford to buy a home. Builders can get pretty creative with offerings, just be careful sometimes they tack what seems like "extras" onto the loan.

Photo Cred: Brookfield Residential

New Home Construction CONS

🔨 Brand new homes can cost more - newer home, higher cost. Not to mention the current state of our market...existing home inventory is still at historical low levels. Builders may not be throwing around money and incentives like they used to in saturated market, they don't have to.

🔨 Upgrades Add up - all of the shiny upgrades you saw in the model home can hold a hefty price tag. Most new construction homes feature builder-grade products, which means basic materials and lower quality. Tip: Upgrading during the initial construction process could save you money. If you upgrade from 6" backsplash to a full height backsplash, you will pay the difference in materials cost but not necessarily more for installation.

🔨 Smaller Lots - new homes are getting bigger and lots are getting smaller. CNBC reported this trend was driven in part by a desire to live closer to community cores, restricting affordable options to smaller lot sizes.

🔨 Construction Noise - if you purchase during the first few phases of construction in a large community, you're essentially going to be living in a construction zone for years to come.

Final Word

Let's face it a home that has never been lived in by anyone but you, customized to your preferences sounds enticing. If your Pros outweigh the cons then get started on your home search. There are several new construction home options in San Diego County. We can tailor a custom new home tour just for you. Hire Team SchuCo as your buyer's agent, the sales offices at new home construction sites hire agents to represent their best interests!

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