There are 4 new construction benefits that I want to share to help you determine if it is better to buy new construction or an existing home. When it came to my first home, I went with new construction because I needed confidence that the home that I was buying was brand new, didn’t have any pre-existing issues, and was built up to today’s code - meaning that city inspectors were required to come out and inspect the work that builders did at multiple points during the building process. At the moment, it was annoying because all of that delayed the closing date but it was worth it!

I will detail the 4 benefits and reasons why new construction homes were best for me. While this focuses solely on the pros, I do have a video that highlights the pros and cons of buying new construction (mostly cons - and they are unique to buying in an HOA - homeowners association - community). I’m excited! Let’s talk about the benefits of new construction.

1. New construction homes usually have a built-in warranty

There are people who can buy a home and rehab it to their liking. And then there are people like me. Those who don’t believe in DIY’ing. Granted, I have fixed a few things around the house (and called family for the rest) but the beauty of new construction homes is that most (if not all) of the major appliances in the home are covered for a certain amount of time. For example, my hot water heater wasn’t working and I submitted a request to my builder to have someone come look at it.

They fixed it, it worked for a couple of hours and then went back to cold water. I called them again and they ended up replacing the whole thing. For free. Well not really free but it was under warranty. That could have easily cost me $1000 between having a specialist come out and actually replacing the heater. I was so thankful at that moment for my decision to buy a new construction home.

2. New construction homes are usually energy-efficient

If your home is brand new, it’s likely that it is built with the latest materials which are becoming more and more energy efficient. This may sound like a non-factor now but energy-efficient appliances help to keep your monthly bills down. The windows on my home keep the necessary air/heat in as well as decrease the opportunity for it to leave the house and cost my gas/electric bill to increase. Those small things matter as you begin to tally up your monthly bills outside of your mortgage.

3. New construction homes can be customized to your liking

I personally didn’t customize anything in my home because that tends to drive up the costs. I also knew that this new construction home would not be my forever home. I was looking at this as a place of comfort for a few years, but mainly as a future investment property. So I opted out of customizing it since I knew I wouldn’t be living here forever. I decided to use that money and buy another investment property instead.

However, if you are at a point in your life where you are looking for your “forever home”, buying new construction homes can be a huge advantage. You can customize your layout, you can convert a room, you can add an island in your kitchen, and the opportunities are endless – but it does depend on the builder. This is also not a free process so be prepared to spend if you want to alter anything outside of what is offered at the base price.

4. New construction homes can be easier to sell

If you think about the mindset of people, most will gravitate towards new and shiny things – and a home is not an exception. Think about your own home search. Are you looking at the newer homes or homes built in the 1960s? I would assume the first option for most people.

When it’s time for you to sell or even rent out your home, you will likely have a slight advantage over older homes because they can sometimes come with pre-existing conditions. The hot water heater may go out often, the roof may need to be replaced soon, and the plumbing may be draining slower. It can be a lot and very overwhelming whether you are new to real estate or not. Because I bought new, I’ve become familiar with the very small maintenance things that are in the home. They are VERY low maintenance compared to some other homes I’ve lived in.

In conclusion, new construction homes may seem like more money but honestly, when I bought, it made sense to pay the extra $1,000+ dollars because of the peace of mind. The inspection came back nearly spotless (just had a few missing shingles on the side of the home) and the best part is that my home appreciated in value over the 6 months that I was under contract. This means that if I signed my contract for $250,000 and homes in the area spiked up to $300,000 in those 6 months, that benefits me and increase the value of my investment. Definitely a winning situation.

Check out my YouTube video where I dive even deeper into the benefits of both and when to choose which.

Resources:

Video - Closing on my new construction home (part 1): https://youtu.be/X77z5bIS1ko

Video - Closing on my new construction home (part 2): https://youtu.be/sAtvnE2DUKU

Video - Closing on my new construction home (part 3): https://youtu.be/4HAY7FmcGGA

How to break down your monthly mortgage payment - PITI explained: https://youtu.be/PUpvUNCGj38 

Open a high-yield savings account and get an extra 1% in interest: https://www.marcus.com/us/en/savings/referral?referralcode=JOS-2LH-CT84

How I saved for my down payment with a high-yield savings account video: https://youtu.be/s9fKzC6sZXQ

What is an Earnest money deposit video: https://www.youtube.com/watch?v=xxYZL7I5wx0&t=0s

[VIDEO] My debt free journey: https://youtu.be/C0Tyt3n7PCY

The #1 Workbook for first-time homebuyers: https://www.maximizedmoney.com/ready-to-own

Biggest mistake I made in my homebuying journey: https://youtu.be/Yn-LsYujGtA

First time homebuyer loans: https://www.maximizedmoney.com/first-time-homebuyer-loans

Instagram (we have lots of fun over here):

 https://www.instagram.com/maximized.money

Ready to find the right real estate agent for you? Download my free checklist for questions to ask:

https://www.maximizedmoney.com/homebuyers-checklist

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