There are many things to consider when looking for a new home, from size and location to overall condition, and of course, affordability. But finding a home that truly fits your personality and the way you live can sometimes be a challenge. Perhaps that’s why 60 percent of home buyers choose a newly-built home over an existing one. According to the study What Home Buyers Really Want,* the number of buyers who would prefer a new home has increased from 2018 with buyers citing the following reasons:
- New homes have the features they want, including an open floor plan, a home office, room for outdoor living spaces, and updated kitchens and baths.
- New homes are more likely to be located where a growing segment of buyers want to live (i.e., outlying suburbs)
The study also showed that Gen X buyers are the most likely to prefer a newly-built home (68%), followed closely by Millennials (65%), and then Boomers (58%).
What is New Construction?
Of course, there are advantages and disadvantages to buying a newly-built home. When deciding on this option, it’s important to understand what constitutes new construction, as well as the different types that are available.
New construction is defined as “built from the ground up,” versus a renovation or restoration of an existing house. Within that category, there are several options:
Custom built – A custom built home is designed by the buyer who works with a home builder to create a residence that meets their exact specifications. With this option, you get a home that is unique to you, but it also involves thousands of decisions during the process and can take up to two years to complete, depending on the size and details. (To understand this process, check out Want to Build a Home? Consider These 5 Steps.)
Semi-custom built – If you don’t have the time or desire to be involved in every decision, you might want to consider a semi-custom-built home. These houses are partially completed by the builder at the time of purchase, but the buyer still has some say in certain aspects such as flooring, cabinets, countertop materials, and paint colors. The number of choices available depends on how far along the builder is in the process. This option is also typically less expensive than a custom-built home, as well as less time intensive.
Spec homes – A spec house, which is short for speculative house, is a new house that a home builder constructs on the speculation that it will sell easily for a profit. Builders design these move-in ready homes to include the amenities and upgrades that many of today’s buyers want. With this option, you know exactly what you’re getting, and homes are typically available right away. However, you don’t get to choose design elements or layouts. In addition, all homes in a development of spec houses tend to look alike or similar.
Start with a Clean Slate
For most buyers, the idea of starting fresh – with newly painted walls, new electrical and plumbing, pristine cabinets and counters – is the primary appeal of new construction. These houses have never been lived in before, which means there is nothing to repair or update. If you’re not handy at fixing leaky faucets or painting walls, or you’re unwilling to replace outdated flooring or an aging roof, you may want to consider new construction.
Most builders also offer a limited home warranty on their new construction. This is sometimes referred to as a service agreement or contract, and typically covers the repair or replacement of major systems (i.e., furnace, air conditioner, water heater, etc.) for a specified period (usually one year). These warranties are designed to protect you from any hidden defects or failures.
Safety can also be a factor when purchasing a newly-built home. Older homes may meet basic building codes, but not include the latest safety materials. For example, new houses may feature devices like hard-wired smoke detectors, fire-retardant flooring materials, motion-sensor lights, and alarm systems.
Another major difference between new construction and pre-owned homes is that the purchase transaction takes place directly from the builder to the home buyer. It’s important to note that even though you’re not buying a home from a previous owner, using a real estate agent to help you with this transaction is highly recommended.
Let Us Help You Find Your Dream Home
Did you know that Cornerstone Real Estate Co. specializes in new construction? Because custom homes typically require a great deal of time and money, we focus primarily on semi-custom and spec homes. The builders we work with often begin constructing a house, based on popular layouts and features. When the right buyer comes along, they can “customize” the house by choosing the paint, flooring, cabinets, countertops, light fixtures, and more, within the builders’ allowances. The number of choices a buyer can make depends on how far along the builder is in the process. In some cases, a builder will complete the house as he/she chooses, and it’s sold with no input from the buyer. However, the buyer still gets the benefits of new construction.
Even if a house is completed, there is some room for customization, as deck/patios, landscaping and appliances are typically not included in new construction. If a buyer chooses, our builders can provide quotes on these elements as optional upgrades. And, because our parcels of land are almost always roughly two acres (to meet township requirements), you’ll have plenty of room to add that custom pole barn!
If you’re considering new construction, give us a call. We’d love to discuss your plans and ideas for your ideal home, as well as tour available lots and homes being built. We can even set up a meeting with a builder you can trust. Contact us today!
Coming Soon – At Cornerstone, we’re working on adding a list of New Construction – Available properties to our website. Be sure to visit our website in August.
*What Home Buyers Really Want, 2021 Edition is a study based on a comprehensive, nationwide survey of 3,247 recent and prospective home buyers conducted in 2020. For more, click here.
