Is New Home Construction Right For You?
Dated: March 5 2020
Is New Home Construction Right For You?
When first consulting with new clients, one of the questions I ask is if they’re interested in new home construction. More often than not, many would prefer to stick with resale homes in established communities. In a thin housing market like it is in Central Florida, that may be a mistake to not even consider it.
Supply And Demand
Central Florida’s established neighborhoods have limited opportunities for the “right” home, and with thin inventory it’s become a seller’s market. This often creates a situation where nicer homes with remodeling or upgrades are under contract within days of listing.
On a recent home tour with clients, we started with 12 homes the day prior to our showings. By the following day, 5 were under contract! While this is obviously great for the sellers, it doesn’t leave a home buyer with a lot of leverage. If it’s truly a home they want, then they can be forced into a bidding war they didn’t ever expect to get into and have to make a decision to spend more than the house appraised for. If they become discouraged, they can give up entirely and go back to renting while losing out on a great investment.
New Construction Homes Have What You Want
What do I mean when I say new construction has what you want in a new home? Easy! Let’s look at a few basics:
Exterior Styling - New communities often have several home styles to choose from.
Floorplan – How do you prefer your home to flow?
Kitchen – You get to pick from multiple styles and colors for your cabinets and counters. Upgraded and matching appliances? Of course!
Flooring – Carpet, tile, wood, laminates? Pick a type, design, and color to match your taste.
Spaces – Many new homes may come with a “bonus” room. This could be modified to work as an office, playroom, loft, or a bedroom.
Latest Tech – Homes will be pre-wired for internet and many builders now offer “smart home” tech such as wi-fi. Google Home features such as Nest thermostats or similar are now almost standard.
Green Features – Some builders now offer solar power options that can eliminate your electric bill!
Lot Location & Size – Want to be close to the neighborhood recreation area or pool? Prefer a corner or a cul-de-sac? Want that big lot for the kids to play in? It’s your choice!
Avoid The Crowd
While there are some opportunities with new construction to be closer to the city, most will be located just outside of Orlando. Communities like Kissimmee, St. Cloud, Harmony, Groveland, Clermont, or Winter Garden are all popular. The nice thing is that you’re still only 30 minutes or so from Downtown Orlando or the attractions with any of them.
No Repairs Or Renovations – It’s Covered!
With a new home, you’re getting a brand new air conditioner and water heater. These will also have the latest in energy efficiency features that can save you substantially on your power bill compared to resale, even if the home is only a few years old.
When buying a resale home that’s been lived in for years, there are often items that come up in the inspection that need service or repair. These items become a part of negotiations and a seller must decide if they’re willing to fix, replace, or offer concessions to the buyer to ensure the deal goes smoothly. If the seller is unwilling to fix some items then there are some tough decisions to be made.
Quality Construction & Home Warranty
Today’s homes are very well made! In Central Florida we have every major home builder to choose from, and all of them provide a home warranty to cover defects or issues for a period of time. In addition, your new appliances will also be covered with the manufacturer’s warranty. Today’s homes are well insulated to protect from noise pollution as well as provide the best in energy efficiency.
Instant Equity And Incentives
New homes will have a fixed and non-negotiable price. That doesn’t mean you don’t have leverage! Many builders will offer incentives or rebates that will help with upgrades or a substantially lower mortgage interest rate. While the list price may not change, the value you’re receiving is excellent. One of the best things about new construction is the opportunity to buy in at a fixed price and have a home that can appreciate in value more rapidly that an established community. You can easily earn 10-20% on your home investment within 3 to 5 years.
I’m Here For You!
If you have questions about new construction, I’m here for you. There are dozens of new communities all around us that fit every budget! Let me help you navigate through and find the perfect home! Get your new home shopping started with one of these links:
Sean Rooney, Realtor
Or, hit the Facebook Messenger to chat now!
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