5 Commonly Mistaken Myths of Buying New Construction Homes

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New Construction is Too Expensive

One of the most commonly misunderstood facts about newly built homes is that they cost far too much more than standard resale properties.  The truth is that builders are very aggressive in their pricing and in their negotiations – especially in today’s market.  In fact, since the last two years have been among the worse in the building industry’s history, many companies are trying to woo customers in with alternative incentives.  Whether providing added amenities within the cost of the home, assisting with closing costs or providing upgraded customization at a discounted cost – there are deals to be had in new construction.

You Can Get A Better Deal On Resale Vs. New Construction

People generally think that buying a previously built home will yield a better deal but the truth is that with the state of our economy and builders’ desire to stay in the market and remain competitive throughout – buyers can get phenomenal deals.  Not only will you be able to move into a brand new space that is customized to your tastes specifically, you will also be able to achieve it for almost the same as if you were buying a resale property.  Most customers are surprised at how competitive new construction is.

A Large Down Payment Is Required On a Newly Constructed Home

The misconception that builders require a large down payment is simply not true.  In today’s economy of course they want as much down payment as possible but the inability to put down a significant amount of cash does not hinder the sale for many buyers. Like any other real estate deal, there are many different ways a deal can be structured.  Whether it depends on the type of financing a buyer obtains or the amount a builder will require or other factors – there are always options.  Buyers should sit down and negotiate to find out the possibilities.

It Takes a Long Time to Get Into a Brand New Home

Builders build and create inventory of their homes and in many cases customers are able to move in as soon as the finishing touches are complete.  This can take about the same amount of time it would for a standard resale property.  Of course it depends on the number of upgrades and customization the customer requires but in general, it does not take as long as most people would think.  Many builders provide a guarantee to close within a set time period – often within or less than 4-5 months (for homes built from scratch). But in cases where a homeowners is moving into a previously built new construction home, they should be prepared to accept minor deviances in décor and finishing from what they may have wanted.

I Can Negotiate the Buyer Down in Price

It costs a certain amount to build a home and builders have to recover that amount.  The opportunity for homebuyers lies in getting all sorts of extras on their property for the list price.  It is important to be flexible but also not to expect the unrealistic. In these cases, the net price is very aggressive compared to regular retail purchase.
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If the idea of living in a brand new home appeals to you but you have had some hang-ups in the past about new construction, contact me today. Together we can work out a way to make your real estate dreams become a reality!