Why Buy New Construction?
Most people prefer new cars over used cars. But when it comes to houses the decision is not so simple especially in Central NJ where high land prices result in the majority of new subdivisions of single family detached homes to focus on models that are 3,000 SF and larger accompanied by price tags that are often in the $700k + range. Buyers seeking new construction under $500k are often limited to seeking out "spot homes" in neighborhoods of more modest sized homes where a builder may tear down an older house that was under 1000 SF to build a new one of around 1,800 to 2,000 SF. Buyers may also want to consider "add-a-level" homes where a builder puts a 2nd floor addition on a smaller home while modifying the first floor plan to turn a small ranch or capecod into a larger colonial.
5 Reasons to Buy New Construction in 2019
- The obvious - everything is NEW - not remodeled, not updated - NEW! You don't have to worry about the age and condition of the wiring inside the wall or the plumbing because it is NEW!
- Unlike existing homes that are being "flipped" which usually don't come on the market until the work is complete, builder's often list new construction homes earlier in the process so that a buyer may have the opportunity to select interior finishes, colors and upgrades and sometimes if you select a home before the builder starts you might even be able to pick roof and siding colors also. While it might be stressful to have to make so many choices, the reward is worth it when you see the finished product that is exactly what you designed.
- A modern floor plan. Again renovated homes can be great alternative to new construction but a new home is more likely to have an open floor plan, larger windows and possibly higher ceilings than a 1960s built home that has undergone a complete renovation.
- Interest rates are still historically low. This means now might be the time to buy your forever home instead of a home that will only suit your needs for 3-5 years and lock in that low interest rate on a 30 year fixed rate mortgage.
- Not wasting money on home repairs. Your new home will likely cost more than buying a comparable one that is even maybe only 15-20 years old. However, think about the savings on maintenance and repair costs. The life expectancy on many major home components such as HVAC, windows and roofing is 15-25 years. So in a new home you should not have to replace those items in for a quite a long- time and you should need to put much into cosmetic upgrades either. Now think about that 15-20 year old re-sale. As an example, if the seller hasn't made updates it is likely that the kitchen and baths are outdated or show wear and tear and that air conditioning may be nearing time for replacement