There are two options that face every buyer when looking for a new home – You can buy it or you can build it. Like anything in this world both come with pros and cons. Some good, some bad, some things you have control over, and other things you don’t. Here is a quick breakdown of what buyers want out of new construction homes and the pros and cons that come with it.
Buyers want a home they can call theirs. They want to choose the color of their cabinets and hardwood, the countertops throughout the kitchen and baths, and the stains on the hardwood floor. They want to choose the paint scheme that identifies that this home is theirs. They have all these options and more which is why new construction is such a great deal. Essentially you’re picking out exactly what you want your home to be and based upon the builder the options can be near limitless. By doing these upgrades through new construction you’re paying for them with your loan versus cash.
The con to this is the price. When looking at resale you might be purchasing a house that has everything done and you’re only paying around 80% for the upgrades that the house has received. With new construction you’re paying 100% for the choice you want and you won’t get 100% back on the resale side. So while you might truly make your house yours you’ll pay every penny to do so.
New construction offers quite a few styles or elevations of homes to choose from. This allows for you to have a house that is yours and looks exactly the way you want it to. Some builders go as far as offering options on the types of siding, stone work, and front porch layouts you can have. The downside comes with the fact that builders have already chosen what elevation or style of home can be built on each lot. Found the dream lot you want but it’s not the right house? This happens every day.
With new construction you have choices of which lots you want to build on. Many builders are starting to frame houses before someone has purchased the lot to build on because they are selling out so fast. A dirt built will run you anywhere from six months to a year to have a home while a home in framing could run as few as three months. Even on a three month build you won’t be entirely stuck with the options they have put forth.
The downside to new construction is commitment. With new construction the earnest money is for all intents and purposes “hard”. You can’t get it back. You put down the lot premium of 20,000 dollars and then you’re committed to purchase. If your loan fails you might get some of the money back but it’s not likely. If you have a change of heart or a job change your money is gone.
New construction allows you to have the home of your dreams but it requires you to be absolutely serious that this is the home you want. With the market being so competitive new construction might be the best option for you. Contact the Colorado Dream House Team and let us help you decide if it’s the right choice and walk you through the process.
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