Should First Time Home Buyers Consider Buying A New Build?

The real estate market is seeing a dramatic shift, now more than ever, buyers are seeing the benefits of buying new construction. As new home sales surge, First-Time Homebuyers should be considering the additional benefits of buying new. From contemporary designs to a low-stress process, here are 5 reasons why First time Home Buyers should consider buying new instead of re-sale.

1. Re-Sale inventory is low

Instead of hunting through neighborhoods and scouring pages of Zillow, when you buy new you simply walk in with your realtor, pick a plot and a model and that home is yours. 

Multiple offers and bidding wars are always a given in the real estate market, however, the industry is seeing historically low numbers in inventory. This low inventory has added even more stress to buyers as they submit as many as 20 offers before they find a home. 

While re-sale inventory may be low, the new home market is skyrocketing. In fact, during the month of May, new home sales increased by 16.6% nationally according to Market Watch. Many suspect the reason for this is the ease of buying a new home. 

As a First-Time Home Buyer, you have unfamiliarity with the home buying process then on top of that, you’re getting bogged down and disappointed with the trials of low inventory. Skip the stress and disappointment and buy new. 

2.  Low Maintenance and a Builder Guaranteed Warranty

As a First Time Homebuyer, you may be unfamiliar with the annual maintenance costs of a home. Typically, you estimate 1% of your home’s value per year, so a $265,000 home could need $2,650 in maintenance/repairs. 

As a new homeowner, you may not have that much cash on hand after making such a life-changing purchase. That’s where new construction comes to the rescue. 

Because everything in your home would be brand new, you would have extremely low maintenance costs. This means no A/Cs to replace, roofing to re-seal, or cracked grout or tiles to repair. 

Of course, should your home need a common fix in the first few years you can always look to your builder guaranteed warranty. New home builders typically include a generous warranty package at no additional cost. 

Builder warranties provide a safety net for first-time home buyers. Warranties typically cover electrical issues, foundation/structural issues, plumbing, roofing, workmanship, and more for 2-10 years. While you should check with your specific builder to see what they cover, it is a relief to know that the majority of your home’s maintenance is covered. Which doesn’t happen when you purchase a re-sale home. 

4. Upgrade and Appliance Packages

Buying your first home is an exciting time, you’re finally getting something that’s totally your own. The flip side of that is because it’s your first time on your own, you may not own all the necessities a home needs AKA appliances. 

When you buy a resale home, the appliances don’t have to stay with the home. Even if they do stay with the home they’re used and could be dated. However, when buying new construction most builders include appliances in the purchase. The buck doesn’t stop at a stove and fridge, builders will typically provide a stove, fridge, washer, dryer, light fixtures, and ceiling fans. 

If you’re looking for a home with some charm or a vintage feel to it than buying re-sale is the route for you. Now, if you’re looking for a home that has a contemporary feel, upgrades, with everything shiny and new then obviously purchasing a new home is the better choice for you. 

For most First-Time Home Buyers, once you have signed your name on the line it’s hard to think about buying another home. However, most homeowners will not stay in the first home forever. Picking a more contemporary style for your home will help you sell it in the future. Just as you want upgrades and customization, future buyers are drawn to the same things. 

5. Less negotiation

While more experienced buyers may see less negotiation as a negative, First Time Home Buyers will appreciate the streamlined feel of buying a new home.  Back and forth messages, counteroffers, multiple calls, and emails are all tenets of the re-sale process. This process can be draining and overwhelming. 

Typically, when buying a new home the process is set to move forward with as little negotiation as possible. The builder will provide a price sheet, available lots for your home, and a set number of options for cosmetic changes or upgrades. By having everything laid out from the moment you step foot in the builder’s office with your agent you can minimize the stress that comes with buying a home. 

However, less negotiation doesn’t mean there won’t be room for ANY negotiation. By bringing an agent with you to the new home builder, you’ll have an advocate on your side who help you navigate any price adjustments, additional upgrades, or appliance packages. It never hurts to ask what else the builder can do for you and your realtor will help you prioritize your needs.

The Final Word:

All buyers are different and may prioritize other things above the reasons laid out here. However, if as a First-Time Home Buyer you’re looking for convenience, upgrades, and a streamlined minimal stress process, then buying a new build is the best choice for you. 

Don’t go it alone though, bring one of the local agents at Advantage Home Team to help guide you. You learn more about the team or contact them here.