3 Advantages to Buying a New Construction Home
- Warranties. Unless you are Mr. and/or Mrs. DIY, fixer-uppers are a lot more romantic in theory than in practice. The problem is, DIY projects in fixer-uppers usually open a can of two, three, or five more fixer-upper projects - and then you move on to Item 2 on your list. Can you see the dollar signs swimming in your head? While you can purchase home warranty policies, which might help with some of the replacement or repair costs, the brunt of the repair bills will be on you. Again, if this is something that you are good at or you enjoy, that might not be a problem. Otherwise, you may find you are in over your head, and spending thousands of dollars more than you originally anticipated. For the most part, new construction homes are "turn-key" and require no additional work. The earlier you get in on the buying side of things, the more say you will have in selecting your options and upgrades which will make your move-in process that much easier.
- New Things. Just like the scent of a "new car," the scent of a "new house" can be heady. There is just something satisfying about moving into a brand new home where nobody else has lived. Nobody else's dingy old paint to get rid of or decades worth of carpet stains to ignore. New appliances are less inclined to break, new tiles are less inclined to pop up, and new carpet looks, well, new! Each of these "new" products also has their own warranty attached, which means you have the support of both the builder warranties and the vendor warranties behind you.
- Resale Value. The statistics show that many Americans won't be in their new home for more than 5 years. So what does that mean for home buyers? It means that whether you have your heart set on a specific home, or particular price range, you also have to be thinking about resale value. Turn-key properties have higher resale values than their fixer-upper counterparts for obvious reasons. Should you opt not to purchase a new construction home, with the idea that you will be fixing your house up over time, make sure the improvements you make are adding equivalently valued equity and are done in a timely fashion.