Buying a house is an exciting but stressful process. If you are considering purchasing a new home, perhaps still under construction, it can come with some additional stress factors and disadvantages. Although you are inclined to the fresh paint, unscuffed floors, and unused toilets, do your research and determine whether the good outweighs the bad in purchasing a new home. Below are five main points for buying a new home.
Determine your budget with a home affordability calculator and see if a new home is within your budget. They are often marked with the highest price points. The average new home sells for $300,000 in the U.S., eight percent more than an existing home.
Building Time and Delays
If you are selling your current home and plan on using proceeds to fund your down payment of a new construction home, you will need to rent while the home is being built. A significant down payment is required before the construction of your new home begins and the process can take up to six months, which doesn’t factor in delays from weather and contractual errors. This means packing and moving twice within a year, something that most people try to avoid at all costs.
Lack of Square Footage
New homes are much smaller than their older counterparts. You will lose overall square footage of your lot, which would have been less expensive than in an existing home. It also means that your front and backyards are smaller, leaving less room for entertaining and gardening. These homes are often built with much smaller rooms, less storage, and a general lack of privacy to your side and rear neighbors. Because the builder gains more profit by squeezing in more houses, you are likely to have more floors or stories than an open flowing floorplan, another disadvantage to those who prefer ranch style living that favors older age.
Even once your home is complete, if you are living in a building site, you will endure years of future construction noise, dust, crowded streets, access issues, and a lack of privacy while your neighborhood continues to grow.
Although you may be apt to the newness of a brand new home, the quality may not be up to par. Builders are trying to meet deadlines and may cut corners to save time. Don’t assume a new house is perfect. It is still important to have a professional do a full inspection of the home before moving in. It is also common to do a buyer inspection where you can tag easy to see mistakes in paint, flooring, or cabinetry. Luckily, a new home also comes with warranties for its appliances if one ever needed a repair.