If you’re thinking about buying new construction, you’re not alone. Many people like the concept of purchasing a brand-new home because it gives them the ability to customize the build and allows them to be the first to live there. Also, new homes have far fewer issues than older ones.
But depending on your circumstances, right now might not be an ideal time to buy new construction. So, before you buy the first new development you find, you should be aware of what’s currently happening in the market that might impact that decision. So, here are the pros and cons of buying new construction in 2022.
Pros for Buying a New Construction in 2022
We already touched on these a little, but let’s take a moment to get a little more in-depth. Buying a newly constructed home may present some challenges, but there are many advantages to owning a brand-new home. Here are four reasons to consider investing in new construction.
1. Little-to-No Maintenance Required
New constructions are an excellent investment because everything is brand-new. Since none of the fixtures have been used, there’s little-to-no maintenance required. On the other hand, when you buy an older home, you could run into issues or major replacements that require immediate attention.
2. Home Warranty
When you buy new construction, you also have the luxury of a home warranty. So, during your first year in the home, the warranty company will cover any issues that arise. Plus, you might get the additional opportunity to extend the home warranty for up to ten years, which you wouldn’t be able to get with an older home.
3. Energy Efficiency
New homes are built with the latest and greatest technology, which means they’re more likely to be eco-friendly and energy-efficient. With the rising cost of energy, it’s essential that you invest in energy-efficient appliances, high-quality insulation, and even renewable energy.
4. Matching Prices
While many assume that new constructions cost more than older homes – that’s not actually the case. In the current local market, newly constructed properties are matching resell prices. So, whether you buy new or old, you’ll pay about the same price.
And as a buyer of new construction, you also won’t have to go into a bidding war, pay an appraisal gap, or submit an offer over the asking price to secure the deal. That makes the new construction option that much more attractive. What’s the point of buying an older property when you can secure something brand-new?
Cons for Buying a New Construction in 2022
Now that you know some of the top pros of investing in new constructions, it’s time to consider the cons. The current market might not suit everyone, but it is suitable for some. So, here are three cons for buying new construction in 2022.
1. Supply Shortage
The U.S. is currently experiencing a supply shortage, making it more difficult for home builders to find materials to complete new constructions. These material shortages are ultimately causing project delays. So, if you invest in new construction, the builder most likely won’t be able to guarantee a closing day, just in case there are any delays due to the economy, weather, and additional supply chain issues.
2. Mortgage Rates Are Rising
As inflation rises and supply chain issues hit the country, we’re also plagued by another growing problem. Mortgage rates have increased by over two percentage points since the end of 2021, and are only expected to rise throughout 2022. That being said, if you work with a real estate professional, like the Welch Team, they can recommend high-quality lenders that have access to better rates.
3. Construction Delays
Supply shortages aren’t the only issues that affect new construction delays. If you’re going to buy new construction, you’re subject to many factors that could ultimately push back your schedule, including the national economy, weather, hiring issues, unforeseen problems, etc. If you buy new construction, you might have to wait a little while before you get to move in.
Looking for New Construction Opportunities?
While there are some cons associated with buying new construction, there are also quite a few pros. And if you have the means, desire, and opportunity to purchase a brand-new home, we believe you should go for it! If you’d like to see new constructions for sale in Northeast Florida, contact the Welch Team today.