When purchasing a home, one of the first decisions a buyer makes is whether to buy a pre-existing home or a new construction home. One mistake buyers often make, is assuming an older pre-existing home is less expensive than new construction; however, this isn’t always the case. A pre-existing home may have hidden repairs or require renovation or updates; all of which can be expensive and cause homeowners headaches. A newly constructed home is walk-in ready and may actually be on par or cost less a pre-existing home.
Great Incentives When Purchasing a New Construction Home
Home buyers are wise to investigate incentives and deals before closing on their new home. It is important to remember that builders do not want homes to sit on the market. Builders are more than willing to help you find a home that will work for you. They are also willing to offer incentives to move the deal along.
- National builders that are part of publicly traded companies are responsible for reaching quarterly sales goals. At quarter end, to close more deals on available homes, these builders will often tack on additional buying incentives.
- The builder may offer incentives during the December holiday season
- The builder may provide design center incentives
- The builder may pay closing costs
- Buy a home with your selected upgrades
Building a new home allows you to create a space that reflects your character and lifestyle. New construction home owners can select from a wide range of modern and unique options. When you close on a newly constructed home, it will have the look and functionality to suit your personality and way of life.
One of the biggest challenges of buyers of new construction homes is staying within budget. Builders often recommend that buyers choose a home with a base price below their total home buying budget. The lower base price will allow buyers the flexibility to add upgrades that will add future resale value to the home.
Potentially Tax Savings on New Construction
Homeowners of new construction may pocket extra money in the first one to two years of homeownership through reduced taxes. A home’s value from the previous year is used to determine the home’s current year property assessment. So, the lot value is initially used to determine the property assessment of a newly constructed home. Purchasing a new home, soon after completion of construction, may reduce property taxes in the first year or two of ownership.
Avoid Expensive Repairs and Upgrades with New Construction Homes
Pre-existing homes often require costly and time-consuming repairs and upgrades necessary to the smooth operations of daily living. In pre-existing homes, which are over ten years old, the water heaters, garage door cables and rollers and other components often need replacement. Additionally, new construction homeowners won’t have to worry about unpermitted repair work done by previous owners that will likely need to be redone.
New construction homes typically avoid repair issues. When problems occur, the warranty department will take care the issues. It is unlikely that the owner of a newly constructed home will ever pay for a replacement or repair. Owners of newly constructed homes experience minimal repairs and replacements of mechanicals and appliances.
Homeowners Love New Construction
Homeowners love new construction because of its many benefits: added value over time minimal repair costs. Home buyers who want to save money and limit the stress of home repair and updating should consider a new construction home.
Learn more by contacting 21st Century Builders today to discuss your new construction options.
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