When purchasing a home you have to ask yourself would you prefer a resale home or a New homes? A resale home for sale, is a home that has been used and lived in. A new home is one that is possibly already being built or one that you will have built.
For the sake of this article we are going to assume that the home is well-built meaning the building company, and contractors built it without mistakes.
What are the benefits of a new construction home for sale?
Current Building Codes.
All homes that are new construction have to be built to the latest codes and standards. Why is this important? The first reason is safety. Codes change typically for safety concerns. If a safety flaw is found in one of the components that make up the home, the code is changed to adapt for safety. For example with electrical years ago there was no GFCI in bathrooms. More recently AFCI have been added to circuit breakers.
Purchasing a old home of 30 years ago will probably not have AFCI. new construction homes for sale also have codes for environmental factors such as hurricane building codes. Over the years as storms hit and cause damage codes have changed to minimize it. The building codes in Central Florida Orlando area are very different then the building codes on the coast of Miami.
Let’s face it things age. As a home ages so does the parts that were used when it was built. A roof that has already seen many years has lost those many years service. The air conditioning and heating system that has been in use for many years has lost all those years of service. It would be hard to tell when the air conditioning heating unit would need replacement. Other components such as sinks and faucets also wear, those will also need replacement.
When starting from scratch with a residential single family new home the home buyer will know about how many years before that part will need to be replaced. For example many air conditioning units can last 10 years, but how much over the 10 year time span is the air conditioning actually used? Did the previous homeowner only use it minimally? During the summer time was the air conditioning set to 60 degrees and running non-stop or was it said to energy saver 78 degrees and would turn on and off. When the home is yours from the start you know how old everything is and how much use it has seen.
A Home Warranty
A home warranty in my opinion is priceless. It would be great if every home had a warranty when it was purchased. Unfortunately only purchasing a new home for sale warranty. the new construction homes warranty is commonly 2 years one more. It is common to see the first year covering the whole house. This means if something small breaks that is of a decorative nature it will be repaired. Also if it is a major components such as Electrical, Plumbing, Roof, Structure, it will also be repaired.
It is common on the second year of the Home Warranty that the parts of the home that are decorative in nature are not covered. What is covered commonly is the electrical, Plumbing, Roof, and Structure. After the 2-year warranty is up some Builders may offer warranties that are longer. Typically the structure of the home and the roof can be in the extended warranty. Each home builder is different and will offer a different warranty.
Always speak to the home builder and you’re Realtor to confirm what is included with the warranty.
Reduced-Cost for Repair Due To The Warranty
Because the home has a warranty you will not have to pay out-of-pocket for repairs during the warranties active time period. Having a mortgage and having to pay for repairs like with a resale used home can get expensive very fast. Just imagine moving into a resale home and you find out the roof needs to be replaced. Now you may have to pay $10,000 or more to replace this roof and still have to pay for the mortgage.
It’s like owning a car and not having a warranty on the car when the car need repair you have to pay for it out of pocket. If the car is paid off paying for repairs is not as bad. But if the car has a monthly payment paying for repairs is a big deal.
Energy Efficiency reduce the cost to run a home. Many new home builders tend to explain the Energy Efficiency of how they build the home. It’s one way home builders sell their home compared to other Home Builders. Energy Efficiency helps the new homeowner with monthly cost. If a homeowner has a mortgage having reduced Electric and Water bills can make life easier.
Purchasing a new home offers many different new home styles. While there are many homes with great floor plans that are much older. There are many new homes being designed in a more practical manner for today’s lifestyles. Home styling can be selected if the home is currently not already being built. The home buyer may have options to change the floor plan and also the exterior of the home also known as the elevation.
Home Buyer Incentives
Home buyer incentives come in many forms. For the new construction home buyer, home builders offer deals. Some of these will include incentives 4 using the lender that is working with the home builder. This can save a home buyer money because the home builder may offer things like free closing costs or thousands towards closing. New homes for sale may also have incentives such as a price reduction or upgrades at a discount or free. Having a Realtor with you from the start will add to the potential savings when negotiating. A good Realtor should know the ins and outs and be on the lookout.
Resort-Style Properties for Investment
It is common these days to see new homes being made targeting investors. This Resort Style type of community typically has homes that are styled and designed for being rented out. A home that has five bedrooms versus two bedrooms or three bedrooms will rent out for a lot more money and have added flexibility. The overall Community as well may be designed for property investors. Simple things such as a resort-style pool and a gated community with a security guard add to the resort investment property value
As you can see purchasing a new home offers a lot of flexibility, benefits and value. With the right choices and guidance the process can be accomplished.
By Rich Noto