When looking for a home to buy, sometimes people are torn between buying an existing home or building a new house. Making this decision isn’t always easy since everyone has unique tastes and preferences. A new home likely has a more efficient heating system, better insulation, and lower maintenance costs, since everything is brand new. However, building a new house can be quite overwhelming experience, especially when building for the first time. Let’s look closely at the advantages and disadvantages, of buying a new house build.
Pros – New Construction Benefits in New Jersey
- Everything is New
- The best thing about a new build house is that everything is new and no one else has used anything in the house. This gives you a sense of ownership. You feel that the house, and everything in it, is truly yours, as opposed to when you buy an old house and you know that someone else lived there before you. It’s fascinating to home buyers to have everything from the faucets to the furnace be brand new. It is also a reason old houses are renovated to try to make old features seem new.
- Lower Maintenance
- New features and fittings require less maintenance. Since a new build house comes with new features and installations, you do not usually have to start performing maintenance services for a few years – so it’s not really something the new homeowner even has to think about right away. Most new build homes come with sophisticated features and state of the art equipment with warranties that last for long time. Little or no maintenance also saves you time, money and stress so that’s a big plus for many new home buyers.
- Government Incentives
- In most cases, local governments have incentives set aside specifically for new build house buyers. These include mortgages and grants. The flexibility of an FHA mortgage is often underappreciated. Many homebuyers are surprised to find that FHA loans can be used to finance a variety of property types, including new builds.
FHA new construction loans are a good option for any homebuyer who isn’t able or willing to make a large down payment on a home. For as little as 3.5% down, qualified buyers can take advantage of FHA’s competitive rates and inclusive credit score requirements to fund the construction of their new home. With these available, you might prefer to buy a new build home simply because you can.
- Sophisticated Features
- Most new build houses are now being built using the latest technology and sophisticated features. Some exciting and popular features to add to a new construction home in 2020 are kitchen finishes like an oversized island, a walkin pantry and under cabinet lighting. A bonus room, like a family game room, home gym or media room with audio video technology built in! Smart home technology can be a convenient and helpful addition to a new home. Consider a home security system, USB power outlets and home automation functionality. Easily accessible laundry rooms are important to many home buyers who purchase multiple story designs. When located as close to the bedrooms as possible, laundry becomes less of a chore! New construction home designs help lower building costs of the house and that savings can be passed on to the buyer.
- Influence on Design
- In most cases, new build houses are sold at the design stage; even before they are built. The developer has a show house for you to tour which will give you an idea of what your home will look like. Once a deposit is secured, the developer will begin building your house. This works to buyer’s advantage since they have input during the construction process, especially regarding the finishes and installations. You can decide the color of the walls, tile, and several other features, unlike with old houses where you have to go with what you find or perform changes and updates after you close on the sale.
Cons – Potential Drawbacks to Buying New Construction in NJ
- Less Space For Your Money
- Nowadays, many developers are using the latest designs that are meant to cut on building costs as much as possible. Newly built homes have relatively smaller rooms, compared to older houses. Some developers choose to reduce the square footage to save on the construction cost. Don’t be afraid to ask your builder any questions during your tour of the home.
- Waiting Period
- With most new build houses, you see the show house first and construction work starts after you have paid the deposit. This means that you have to wait for your house to be built. This can become an inconvenience when you have a prospecting buyer of your old house waiting for you to vacate. A solution would be to find a local monthly rental to move into for the short term until construction on your new home is completed.
- Disruption
- The majority of new construction homes in New Jersey are built in residential housing developments where several other houses are being constructed. When this is the case and you happen to move into your newly built house; you may have to deal with endless disruptions, ranging from dirt, vibrations, noise from construction machines to road closures due to mud. Also, if you are one of the first home buyers on the block, you won’t know anything about your new neighbors until the development starts to fill in. If a quiet neighborhood is a high priority for you, you may want to find a lot in a more established development so you can get a feel for what the neighborhood is like.
Having looked at the advantages and disadvantages that come with buying a new construction house in New Jersey, the decision may come easier based on the considerations detailed above. If the feel of a new house, less maintenance, and sophisticated features are your priorities, then a new build house is your ideal option. If you’d rather have larger rooms, fewer disruptions and less waiting, then an existing house may be the best choice for you.
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