Last week we wrote about a few new construction condo and townhome projects available in Denver. But have you never considered buying new construction and are curious about the pros and cons? Buying a brand new home can actually be a quite different experience compared to a re-sale purchase (traditional residential real estate transaction where a home is sold from one owner to another). For example, the contract is a bit different, the timeline is different, and you’re working with a sales office instead of one listing agent.
What to Expect When Buying New Construction
When buying new construction, it is a great idea to work with a Usaj Realty real estate agent as they can walk you through what to expect based on the property’s location, who is building the home and other various factors. They will help hold the sales center accountable for their promises to you, help you stay organized with all the deadlines and timelines, and advocate on your behalf!
Some Advantages of Buying New Construction
You are the First to Use the Space!
In the same way that new flooring and paint can freshen up an older home, in a brand new home literally everything is shiny, bright, and new! You don’t have to worry about unforeseen damages from prior owners or getting carpets cleaned or swapping out outdated appliances or energy-inefficient windows. This brings “move-in ready” to a new level.
Lender & Builder Financial Incentives
Oftentimes, depending on how much inventory the development has available, you can receive what’s called a lender or builder incentive for purchasing a home. This can go towards upgrades on the home or go towards your closing costs. Your Usaj Realty real estate agent will walk you through what the incentives are when you go to tour a new construction site.
Meet Your Neighbors
Everyone is moving in at once so you have a fun opportunity to meet everyone at the same time when everyone is new to the area. This is a pretty unique benefit to a new construction development or neighborhood.
No Multiple Offer Situations
Typically, home buyers avoid multiple offer situations when buying new construction since the project has multiple homes for sale and they are not likely to sell out all at once. This can be a great option for someone who wants more time to think about the buying decision and isn’t ready to buy a home after touring it one time.
Fewer Maintenence Expenses in the Early Years
Since it’s a brand new home, there shouldn’t be any reason to replace the home’s most expensive assets for years to come. Think: roof, HVAC, plumbing, major appliances, etc.
Customize Your Finishes
Depending on the development, buyers can choose their package for finishes such as kitchen details, flooring, landscaping, and more. This depends on what the builder is offering and where they are at in the construction process. It normally needs to be chosen earlier on in the process so depending on those factors, you could walk away with your preference.
Modern Conveniences
From being energy efficient to having everything up to 2021 building standards, you will be golden if modern conveniences are a priority to you.
Need to Sell Your Current Home First?
If you need to sell your current home first before purchasing a new one, sometimes the sales center at the project will allow you to make your offer contingent on the sale of your current home. This is unusual for a re-sale in a sellers’ market, like the one we are currently in.
Read Next: Do I need a Real Estate Agent when Buying New Construction?
Some Potential Disadvantages of Buying New Construction
Timeline Can Be Lengthy and Less Predictable
New construction homes are sold long before they are ready for move-in so patience is key to this process. A flexible landlord or making your offer contingent on the sale of your current home can help offset these inconveniences. Oftentimes, construction gets delayed from early project estimates and move-in dates are ultimately pushed back.
Research the Builder’s Reputation
It’s important to know that you are building a high-quality home. Your Usaj Realty real estate agent will be able to help you research the builder and learn about their industry reputation.
Might Be Further Away from Community Amenities
If you’ve chosen a project with thousands of new homes going in, it’s likely there aren’t community amenities within walking distance or a short drive like grocery stores, quaint neighborhood shops, or coffee shops quite yet. This will be something to research while exploring the area. And keep in mind that upcoming projects like grocery stores and other retail spaces will only move in after the community has been established. Your Realtor will be able to help you research what companies have plans to move in down the road.
Can Only Customize to a Certain Extent
If you are trying to build your custom dream home from scratch, you’ll want to avoid purchasing a new construction home from a development company. There will only be so much you can customize when buying from a sales center. But the completely custom route consists of a massive undertaking: buying the land, putting in all the basic services like sewage and electricity, hiring all your own contractors, etc. The pros and cons of the custom home building process require serious consideration.
Being a homeowner is more than just owning a piece of real estate. It’s an investment in your future, a means of improving your quality of life, and the opportunity to create a true “home” that boasts your special touches and design ideas. By working with a reputable real estate brokerage like Usaj Realty, you will have peace of mind knowing your best interests are being looked after by a dedicated and trustworthy professional. Contact us today for help with your next home purchase in Colorado!