Are you purchasing a home this spring? Spring home buying can be exciting and challenging all at the same time. The current market has left home buyers feeling discouraged at times. Is there a potential solution for buying in this current
market?
We believe new inventory that stems from new construction could be the answer! So what does this mean for home buyers…
New construction could solve a problem for current home buyers. Are you struggling to find a home within your budget as well as one that meets your needs? The current interest rates are causing people to decrease their budget which could add additional stress on buyers that are struggling to find inventory within their budgets. So…what does this have to do with new construction? To sum it up, builders have more room in their budgets. Having more room in their budgets allows builders to offer greater incentives to the home buyer than a homeowner who is offering a resale home. Knowing this information can put the buyer in the driver’s seat. Being in the driver’s seat for builders’ contracts can lead to a great outcome for your home-buying process! To navigate the builder contracts and negotiations we recommend that you include your real estate agent in all of your communication with a builder.
Here are a few incentives that are offered by builders, according to the NAHB
● 29% of builders covered closing costs
● 27% offered offers and upgrades at no additional cost
● 26% offered to reduce the rate temporarily
● 24% offered to reduce the rate permanently
New construction might be for you and it also might not. Here’s a list of some pros and cons of new construction:
Pros: Brand new, energy-efficient, builder incentives, make it your own
Cons: Harder to plan move-in times, less mature landscaping, builder contracts
As with any home purchase, there are pros and cons. The wants and needs differ from buyer to buyer. We recommend that you give some thought and research to whatever route that you are pursuing. If you are feeling bummed out about the current inventory, pursue the new builds in your area, you might find the right fit- within budget!