New Construction — A Viable Option in a Tight Market

Whether you look upon house hunting as an adventure or a chore, there are some who would tell you that building a new home is a recipe for disaster. But others insist that building new is the best way to get the home of your dreams at the best possible price. What is the truth? There may not be a single choice that’s right for everyone, but new construction in most areas represents a viable alternative.

Real estate professionals acknowledge that prices are rising steadily and that the available supply of move-in ready homes is dwindling all across the country. This may be the most active “sellers’ market” in a decade. Buyers are facing greater challenges right now. Builders, however, are gearing up to meet new demand after several years of lower than average production. Despite higher costs for materials and labor, new construction represents an opportunity, and can be a wise financial decision.

Because well-priced homes in good condition routinely receive multiple offers today and can lead to bidding wars, buyers must be prepared to act quickly when they find the “right” home. It can be frustrating and disappointing, and may lead to settling on a second or third choice. Many buyers report having to submit multiple offers before one is accepted.

Alternatively, wording with a new home builder in a planned subdivision can be as simple as picking the lot you prefer and specifying the colors and kitchen appliances you prefer. Prices may vary somewhat based on options and finishes, but you might be able to look forward to promised completion on schedule and a firm move-in date. You might have to be patient, however, during the three to six months of construction.

A new house is just that – New! Statistics confirm that nearly half of all buyers of pre-owned homes plan to make at least some renovations within two years. With a new home under warranty, you have some comfort around ongoing maintenance and repairs for the first few years.

If you don’t need to move immediately, another option might be to purchase a lot that you can build on at some future date. Land is often a good investment, and if your plans change later, you could resell that residential lot.

The best advice? No matter which direction you choose, keep your options open.