Buying a newly-built home has been a common practice for many home buyers throughout Louisiana and the USA. Over the years, more and more buyers have come to realize that buying a newly-built home is a better option than buying a lot and having a house constructed in it. Aside from that, buying new construction homes offers a long list of benefits.
But before going into these benefits, it is best to provide a clearer picture of what a newly-built home is all about. This will help you better understand what makes it different from other houses.
What is a Newly-built Home?
A newly built or a new construction house is simply a house built from the ground up. In most cases, having a newly-built home happens in two ways. The first is when you buy a piece of lot and hire the service of architects and appropriate contractors to handle the construction. The second is when you decide on buying a newly-built home from a developer.
Aside from being entirely new, a newly-built home comes with the following characteristics.
1. Never Been Lived In
One of the significant characteristics you will most likely enjoy when you decide on buying a newly-built home is that no one has lived in the house before you. Typically, you are the first occupant, and you’ll get the house unblemished and unspoiled. Also, the house will likely have no leaking faucet, shag carpeting, or cracked tile.
2. Transferred From the Builder/Developer to the Buyer
Unlike the conventional house resale, buying a newly-built home allows you to purchase a house that was not previously owned but bought directly from the builder. Although it is a common and highly-recommended practice, buying a newly-built home with assistance from a real estate agent remains optional.
3. Backed by Warranty
Another notable characteristic you would surely benefit from buying a newly-built home is that an applicable warranty backs it. This is because most builders offer home warranties to buyers, usually covering the cost of several home repairs within the policy period. As such, you are protected against possible hidden defects upon moving into the newly-built home.
4. Can be Easily Financed
Many who decided to buy a newly-built home have realized that the houses they purchased can be easily financed. Most of these home buyers could look and qualify for loans that they eventually used to buy a newly-built home. Not only that, buying these houses has exposed many buyers to low-interest loans and other incentives like low-cost closings and no down payments.
What are the Benefits of Buying a Newly-built Home?
Buying a newly-built home or one of the new construction homes for sale offers a long list of benefits. Unfortunately, not all buyers know this. Due to their lack of proper knowledge, most decided not to buy from new construction homes companies. Instead, they purchased previously-owned houses in their area and eventually regretted their decisions.
So, if you are planning to purchase your next house, consider buying a newly-built home and enjoy the following benefits.
1. Energy Efficiency
Buying a newly-built home allows you to have a very energy-efficient house. According to experts, a new construction home consumes less energy because it tends to have a tightly-sealed building envelope that prevents cold or warm air from escaping. As such, it is easier for the cooling or heating system installed to maintain the desired indoor temperature. Thus, they consume lesser energy that can be converted to lower monthly energy costs.
2. Home Warranties
Buying a newly-built house also gives you peace of mind in various ways. One of these is knowing that the entire structure and some of the appliances included when you bought the house have warranties.
Typically, the appliances in newly-built homes are covered with a 1-year warranty and the manufacturers’ extended warranties. Also, most of the home’s features, such as the roofing or structural systems, are usually covered by 1, 5, and even 20-year insurance policies. Due to this, you are protected from incurring unwanted expenses for a few years after buying a newly-built home.
3. Customization
Many buyers prefer the idea of buying a newly-built home due to customization. In most cases, home builders allow buyers to participate in the actual designing process of their properties. They also will enable them to select the paint colors, design, flooring and other features that suit their needs to be included in the final construction plan. Due to this setup, the builders can build houses tailored to meet their future owners’ needs and preferences.
4. Financing
Another significant benefit of buying a newly-built home is the abundance of mortgage financing perks. The new home builders usually have their preferred lenders willing to extend some of the financing privileges to buyers. As such, you’ll have a greater chance of buying a newly-built home with the best financing rates attached to it.
5. Lesser Repairs
Buying a newly-built home means lesser repairs. This is because the house is built from scratch and all the materials used are new. Also, most new home builders employ the best and most expert artisans to handle the construction. Due to this, you are given the assurance that all the home’s features are well constructed and will not require repairs anytime soon.
What are the other Advantages of Buying a Newly-built Home?
Aside from the benefits that buying a newly-built home could provide, many real estate experts also recommend opting for this home-buying option because of the following not-so-obvious advantages.
Open Floor Plans
One of the not-so-obvious benefits of buying a newly-built home is having a large floor area to accommodate various activities, such as hosting more people. Also, many newly-built homes come with spacious kitchens for a more convenient cooking experience and larger living rooms for the family members to enjoy.
Amenities
Buying a newly-built home means purchasing a property from a community that offers various amenities such as tennis courts, swimming pools, walking trails, clubhouses, lakes and many more. Due to this, you can take advantage of these features available for community members.
Advanced Wiring System
Buying a newly-built home comes with having a house equipped with the advanced wiring system that allows you to integrate some state-of-the-art equipment like smart security systems, smart televisions and other smart tools. Also, the wiring system in newly-built homes can be customized to meet the buyer’s needs.
Building a New Community
Building a new community is among the built-in benefits of buying a newly-built home. This usually happens when you move into a new home in a new neighborhood, and you will eventually be exposed to new neighbors and establish a lasting bond with them. Also, most new home builders host community parties to help all the homeowners meet and connect.
What is the Best Way to Buying a Newly-built Home?
Buying a newly-built home is usually a better option than buying an existing one. But to get the most out of this purchase, you should learn how the buying process is done. So, if you plan on buying a newly-built home, it is best to consider the following tips.
1. Decide which type of newly-built home best suits your needs
When you decide on buying a newly-built home, you should know which type of house to purchase. However, if you still don’t know which house to buy, you can choose which of the following best suit your needs and preference.
- Tract Homes – This is the type of newly-built house that the home builders are building after buying a huge tract of land where they can create a community. These homes are usually identical but regarded as an excellent option because you’ll know exactly what you’re getting out of your money.
- Spec Homes – This newly-built home is fully completed and ready for move-in. Although the buyer is not involved in the design process, buying a spec home remains a great option because this allows you to purchase a brand-new residence, and you are the first occupant.
- Custom Homes – This is a fully customized home, and buying this allows you to take part in the house’s design process. Although a custom home is the most expensive among the three, this remains the most excellent option when buying a newly-built home because it gives you the freedom to build the house the way you want.
2. Look for and hire the best buyer’s agent
Although buying a newly-built home does not require you to hire the service of a reliable buyer’s agent, it is highly recommended that you hire one. This is because having a buyer’s agent on your side assures that you will be getting the best home-buying deals. Also, having an experienced agent ensures that your best interests are well taken care of during home-buying.
3. Search for the best neighborhoods
Aside from hiring a reliable agent, you should also search for the best neighborhood. To achieve the desired results and get the best out of buying a newly-built home, consider the following factors during the search.
- Proximity to various educational institutions
- Availability of entertainment options (bowling alleys, movie theaters and others)
- Proximity to recreational spaces (swimming pools, parks, and fitness centers)
- Peace and order situation
4. Understand the purchase agreement
Understanding the purchase agreement is an important aspect you should not overlook when buying a newly-built home. This is because knowing all the essential terms in the agreement allows you to know the best things to do if any unforeseen issue arises during the ongoing home-building process.
5. Have your newly-built home inspected
Buying a newly-built home doesn’t always mean purchasing a problem-free house. As such, you should have the home inspected. But since you already have an agent, looking for a professional home inspector should not be a problem. This is because buyer’s agents are usually connected to inspectors, and yours can help you have one when the need arises.
For best results, ensure that all the issues the inspector has discovered are listed and submitted to the builders. The list will serve as their guide to determine the needed repairs and improvements. You can also use this list when the home is subjected to another inspection. This technique will help you determine if the issues discovered during the previous inspection were adequately taken care of.
6. Review the warranty documents
Home warranties are essential when buying a newly-built home as these protect you from incurring unwanted expenses in case there are unseen issues on the house you purchased. As such, you should review the warranty documents well before signing them.
To ensure that you’ll get the best home warranties, you can seek the assistance of your agent. You can ask your agent to go through the terms of the warranty to ensure that these are favorable to you. And because the buyer’s agent is knowledgeable about home warranties, they can be a great source of the answer to any question you have.
7. Do a final walkthrough
Before taking the keys and signing off on the completion of buying a newly-built home, be sure to have a final walkthrough of the house. During the walkthrough, make sure that all the issues that were discovered during the inspection were fixed.
You also need to ensure that all the excess construction materials were removed correctly and there are no signs of jobs that were not completed.
Conclusion
Buying a newly-built home is the best option when you want to buy a house, and this is because a new-construction home allows you to have a house built according to your specifications and needs.
However, you should hire the service of a reliable real estate agent such as those employed by Nicole Spellman Group. Doing this will help you have an expert who will take care of all your home buying needs and ensure that you get the best out of buying a newly-built home process
