New Construction means that you are buying a home that is brand new and have never been lived in. Typically, the different types of New Construction includes:
Production Home: Built in large communities with pre-set floor plans.
Semi Custom Homes: You can choose finishes and some layout options.
Custom Homes: Fully designed from the ground up.
New Construction isn’t for everyone, but it can be great for the right buyer, if you
Want a move in ready home with modern features.
Prefer less maintenance and fewer repairs in the first few years
Like the idea of customizing finishes and layout.
Value builder warranties for peace of mind.
Are comfortable with a Builder time line.
Planning to live there for at least 3-5 years. (Think resale value and building equity.)
Why a time frame matters: When you first buy, a portion of your payment goes towards interest, not just the principal. It takes time for your ownership stake (equity) to grow. In addition, you need time to recover your costs of purchasing the home which includes closing costs, Builder upgrades and moving espenses. If you sell your New Construction home too soon you may only break even or lose money. If Builders are still selling homes at incentivized prices and brand new nearby home are selling at a competitive price, reselling your New Construction immediately can be difficult.
Purchasing a New Construction home can be a wonderful experience for you and your family. So why not get the most from your purchase and plan to live in it for a few years.
