Downtown Detroit Homes Ready for Immediate Move-in at the Townes at Pullman Parc
Many first-time homebuyers might shy away from the prospect of buying a brand-new home, assuming: It will cost too much. It will take too long.
While purchasing new construction is indeed different from purchasing previously owned property, many misconceptions abound about new builds. As a result, homebuyers who’ve heard these rumors might be passing over a smart path to homeownership that makes sense for many Americans today.
“Given declining housing affordability and limited existing home inventory, a full one-third of inventory on the market is now new-construction homes,” says Robert Dietz, senior vice president and chief economist for the National Association of Home Builders.
In other words, in a housing market plagued by limited inventory, prospective homebuyers can’t afford to count out new-construction homes as an option—and they certainly shouldn’t just because of some persistent misconceptions.
With that in mind, we’re here to set the record straight on some easily busted new-construction myths that just won’t quit.1. New construction homes are more expensive
While new-construction homes might technically cost more upfront, that price tag is not the whole picture.
“It’s true, on the average, that new homes of similar sizes historically outprice pre-owned by about 16%,” says Stephen Haines, president of Artisan Built Communities. “But since homes don’t possess a clear odometer on them, like one would use to evaluate a used car, buyers need to consider all the costs of purchasing to understand their total cost of ownership.”
A new-construction home, after all, will sport a brand-new roof, appliances, HVAC equipment, and major systems that homebuyers likely won’t need to repair or replace anytime soon. In other words, while a new-construction home might have a sales price that seems more expensive upfront, it’s actually saving a buyer from having to replace, upgrade, or “bring to code” elements of a previously owned home, which could cost tens of thousands of dollars.
“Depending on the age of the pre-owned homes, one should understand the remaining life expectancy of these components,” says Haines. “One must look closer to total cost of ownership to understand the truth.”2. You’ll be waiting a long time to move in
It’s true that new-construction homes do take time to be built—on average, about 6.5 months from the ground up.
However, this does not mean you’ll need to wait that long, since builders often start building long before they have a buyer. Construction on these “spec homes” might already be well underway or even completed before you strike a deal. So if you don’t want to wait at all, see if there is a spec available.
View the full article here: https://www.realtor.com/advice/buy/myths-about-buying-a-new-construction-home-debunked/
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