Is New Construction Right for You?

Are you in the market for a new home? If so, you’ve likely encountered the classic dilemma of choosing between established properties and new construction homes. While both options have their merits, today we’re diving into the world of new construction and exploring the array of benefits it offers to homebuyers like you. From enticing builder incentives to a less competitive environment and streamlined negotiation processes, there’s a lot to gain from considering a brand-new property.

**1. **Irresistible Builder Incentives: **When you opt for new construction, builders often sweeten the deal by offering a range of enticing incentives. From upgraded appliances and energy-efficient features to custom finishes and extended warranties, these perks can make your new home not only a haven of comfort but also a smart financial investment. Imagine moving into a home where your modern appliances, top-tier insulation, and state-of-the-art technology are all covered by the builder’s warranty—peace of mind that’s hard to beat.

I have been visiting multiple new construction neighborhoods with buyers over the last few months and have seen a variety of incentives. One has an interest rate buydown (while funds last) that is significant, buying the rate down by about 1.75% from market. With last week’s rate increase, that means instead of getting an approximate 8% 30 year mortgage rate, you would get 6.25% through the builder’s lender. That’s a significant savings, $354 per month on a $300,000 mortgage. This same builder also may offer up to $7,500 towards closing costs.

Another builder I spoke with is offering $10,000 off the purchase, $3,500 towards closing costs, blinds, and a full appliance move in package including refrigerator, washer, and dryer (blinds often aren’t included, along with washer, dryer, and refrigerator – it’s usually just oven, dishwasher, microwave).

**2. Less Competition, More Options: **In the world of real estate, competition can sometimes be fierce. However, when it comes to new construction homes, you’re likely to face less of it. Unlike the traditional resale market, where multiple buyers might be vying for the same property, new construction homes often have a more controlled sales process. This means you have a better chance of securing the home you truly desire without the stress of bidding wars or rushing into decisions due to market pressures.

**3. Streamlined Negotiation Process: **Negotiating the price of a home can be a daunting process for many buyers. Fortunately, when purchasing a new construction home, the negotiation process is often more straightforward. Builders typically have a set price for their properties, and while some minor negotiation may be possible, you won’t have to navigate the intricate back-and-forth negotiations that can be common with resale homes. This simplicity can save you time, stress, and potentially result in a fair deal.

**4. Customization and Personalization: **One of the most exciting aspects of buying new construction is the opportunity for customization. Many builders offer a range of floor plans, finishes, and design options, allowing you to tailor your home to your preferences. From selecting paint colors and kitchen countertops to deciding on flooring materials, you’ll have a hand in creating a space that reflects your unique style and lifestyle needs. With the larger builders, this may not be the case. What you sacrifice in flexibility, you gain in purchase price – this is how they keep their costs down and can offer homes for sale at lower prices.

**5. Cutting-Edge Energy Efficiency: **New construction homes are often built with the latest energy-efficient technologies and materials. From advanced insulation and modern HVAC systems to solar panels and energy-efficient windows, these features can lead to substantial savings on your utility bills. Many are set up as smart homes as well. Additionally, environmentally conscious design practices contribute to a reduced carbon footprint, making your home not only a comfortable retreat but also a responsible choice for the planet.

**6. Affordable Pricing with Long-Term Value: **Contrary to the misconception that new construction homes are always more expensive, they often come with long-term value that can make them a cost-effective choice. While the initial price tag might be slightly higher than that of an older home, consider the ongoing savings from reduced maintenance and energy bills. New construction homes typically require fewer repairs and updates in the first few years, allowing you to allocate your resources more strategically. Additionally, the modern amenities and energy-efficient features can contribute to higher resale value down the line, making your investment in a new construction home a financially sound decision. With affordable pricing that’s coupled with the promise of enduring value, you can secure a beautiful, up-to-date home without breaking the bank.

In our current market, with the lack of inventory and increasing prices we have seen for the past few years, new construction homes from the bigger builders are sometimes even less than existing homes. As previously mentioned, they keep their costs down by buying in bulk nationally, and offering you fewer options. This can translate to lower prices.

**7. Relief from High Due Diligence Fees: **As opposed to existing homes that typically see both a due diligence fee and earnest money in NC, new construction homes typically require a builder deposit. I have seen this deposit range from 1% to 3% of the purchase price, and most of the time it’s 1%. Always check the contract, but in my experience it is nonrefundable per the contract, with the exception of a financing contingency. At 1% that is significantly less than what sellers in our market have seen for due diligence fees (which are non-refundable) over the past few years, let alone earnest money. That means you may be risking less money at the time of contract.

In conclusion, if you’re searching for a home that offers not only a comfortable living space but also financial sensibility, new construction homes present an appealing solution. The combination of attractive builder incentives, reduced competition, streamlined negotiations, customization opportunities, energy efficiency, and affordable pricing sets these homes apart in the real estate market.

Ready to embark on the journey of homeownership? Email me at kim@thecoastalrealestategroup.com to learn more about the exciting new construction opportunities available in your desired area.