Are you curious about the difference between pre-existing construction and brand new construction houses? In this video, I’m going to share the pros and cons of building a brand new house. We’ll look at everything from customization to price so you can see if new construction is the right option for you.
When you’re thinking of building a brand new house, the thought is super exciting. You’re probably thinking of the smell of a brand new home along with the look and style of it. But here’s the deal: building a brand new home might not be a good option for some people. While there may be some cons, we’re going to start with the pros of building brand new first.
Competition And Customization
The number one pro of building a new home is that you don’t have competition. With the market that we’re experiencing and the low inventory in Lubbock—along with the entire country—you can start building a house without having to worry about competition.
If you want to buy a pre-existing house that is listed in the market, chances are you’re going to face a multiple offer situation. This means you’ll have to compete with other buyers to get that house. These days, it’s not unusual for buyers to go through 3 to 6 different offers before they can actually buy a house.
The second pro of building a brand new construction home is your options. Now you can customize your home exactly to your liking and your family’s style. You can pick your colors, your neighborhood, your floorplan, and so on. This is by far one of the most valuable options that you have when you’re building a house for your family.
The third pro is that your utility bills and the cost of the maintenance for your home will be cheaper. Since you’re building a brand new construction home, your house is really sealed and insulated well. This means you’re not going to lose the heat and cold as older homes do.
Chances are that your utility bills are going to be cheaper on new construction, which will save you money every month. When you add it up, this is going to be a very substantial amount of money over the years.
Insurance And Maintenance
Additionally, the insurance that you’re going to pay for a new construction home will typically be a lot cheaper than insurance on older homes. The reason for this is that insurance companies love to insure a brand new home. One of the most attractive parts of building a brand new construction home is having peace of mind.
Everything in the house is brand new, including your electrical, plumbing, and A/C. You’re not going to be worried about the maintenance on those for a while, making it an attractive option for homebuyers. It also comes with a warranty; you usually get 10 years of structure warranty, which covers your slab, framing, and everything structure-wise.
Additionally, depending on the builder that you choose, you get one to three years’ full warranty on the home. That’s basically a bumper-to-bumper warranty for every single item in the house.
Greater Appreciation Values
One more pro to consider when you are building a new construction home is appreciation. Typically, when you’re building a new construction home, your appreciation of the property in the first three years is going to be a lot more than for a pre-existing home.
The reason for that is when you have a house in a new development—where new construction is usually located—the more they build around you, the more valuable your home is going to get. Here’s a prime example. Let’s say you go to the builder and build a house today for $300,000. If you went back a year later to the same builder to construct the exact same house, I can assure you you’re going to pay a lot more than the $300,000.
This means your house is automatically going to bring the value up. This is one of the main reasons people buy a brand new construction home; the appreciation in the first three years is going to be more than on a pre-existing home.
Now that we know about some of the pros, let’s look at some cons of building brand new. These are the things that people usually don’t think about. The number one con for building a brand new construction home is timing.
Depending on who’s building your house and how big it is, it can take anywhere from four months to nine months to build a house in Lubbock. So if that’s a consideration for you and your family, you need to plan how you’re going to wait for the house to get built before you actually can move into it.
Square Footage And Price
The second con of building a brand new construction home is that you may have less square footage. If you compare brand new construction versus a pre-existing home, you’re going to lose some square footage. The price per square foot for a brand new construction home is a lot more than the price of a pre-existing home.
For example, if you’re buying a 2,000 square foot brand new construction house for $300,000, you can buy something similar that’s a few years old at about 2,200 to 2,400 square feet. You gain about 200 to 400 square feet when you buy a pre-existing home.
When you’re buying new construction, you’re paying a premium for that project. There is no difference in buying a brand new car versus buying a brand new house; a brand new car usually costs a lot more than a used car.
The third con of building brand new construction is selection. While I also mentioned this as a pro, it’s not for some people. If choosing your own floorplan, selecting your plumbing and fixtures, and making other detailed choices is stressful, chances are building new construction isn’t for you.
Some people love this process and are happy to pick their own finishes, colors, light fixtures, plumbing fixtures, and more. Depending on the person, making all the decisions needed for a new construction home can be a pro or con.
I’m Here To Help
Is building a new construction home the right choice for you and your family? These pros and cons are the things you can consider to determine if this is a good option for you or not. Of course, building a new house includes much more than I can explain in a few minutes.
In the past few years, my team and I have helped over 50 people to build their own homes. We know this process in and out, and we know how builders work. So if you’re thinking about building a home and you still don’t know if it’s the right choice or where to start, I would love to be your guide.
Be sure to give me a call and I’d be happy to sit down with you. I’ll explain the process that is going to suit your needs, and from there we’ll see if it’s the right choice for you or not. Don’t forget to subscribe to my channel so you never miss an episode of my show. Stay tuned to see what I feature next!