In 2023, roughly 5 million homes were sold in the United States, but only about 900,000 homes were new builds. This tells you one thing: home buyers in America love pre-existing homes.
If you're in the market for a home, you're also probably looking for an existing home - at least going by these numbers. But you could also be one of the few buyers who want a new construction home.
In essence, buying a newly built home is akin to buying a brand-new car. There's a strong sense of pride and achievement that engulfs you when you buy a home that's never been lived in. It feels exclusive...and it is.
The better news? You can even buy it off-plan and save some money! Here's what you need to know.
Research the Builder
Buying an existing home is like buying a finished product. Save for wear and tear and any damages that might have been caused by previous owners/users, an inspection will reveal all about the state of the property.
On the other hand, when you're buying a home that's still in the construction stage, you have no way of knowing what the final product will look like. A builder can start off properly and start cutting corners once they have found a committed buyer.
This is why it's crucial to research the builder before signing the sale agreement. Have they completed any projects before? If yes, what's the state of those projects? Are the buyers satisfied with the quality of the build?
Be wary of builders who are on their first project since they have no reputation you can bank on. Homes cost a lot of money and you don't want to put your money into a poorly constructed project.
Capitalize on Incentives
No one buys a home off the plan because they think the homes will sell out before they're complete. Even if they sell out, new builds are coming up every day.
The primary driver is the cost-saving incentive of buying off-plan. Developers are always offering attractive discounts on off plan homes since they want to use the money from buyers to finance the project. However, don't just settle on the discount that's on offer. Press for a better deal and you'll likely get it, especially if you have the cash ready.
Get Your Financial Ducks in a Row
Buying a home, whether new or existing, is a capital-intensive venture.
As such, you must organize your finances when you're buying a new build. If you're relying on mortgage financing, get pre-approved so that you know how much house you can afford. You also need to ensure that your lender won't have a problem financing an off-plan new construction home.
Get Yourself a New Construction Home - Off the Plan!
An off-plan new construction home isn't a popular path to homeownership because most people want instant gratification. You want to buy what you can see and use immediately. However, if you can beat that urge, you can buy a new build off plan.
PMI Pinellas is here to guide you on your homeownership journey. We are a full-service real estate asset management company in Palm Harbor, Florida.
Check out our real estate services and schedule a consultation to speak with an expert.
