- What are the pros and cons of new construction?
Lets talk about that next.
Treasure Valley Dave here,
and today we gonna talk about new construction.
So what is new construction?
Well, its pretty much like what the name implies.
Its a house that has been newly constructed.
There are a couple different kinds though.
So you have the house that's an Inventory or a Spec house
that's already built or almost finished being built
that you could buy and move into probably
by the time escrow closes.
And then you have of course the Custom house
that isn't built yet, plans aren't even drawn up,
that you will sit down with an architect
and then with your General Contractor
and you'll start putting plans together and...
So, while that produces some great looking houses,
there is quite a time factor involved there
and a money factor.
Some of the people that I trust that work exclusively
with this custom new construction projects,
they say that, you know,
unless you're coming in at $7-800,000
for a very modest Custom home, it's not worth it.
So what are the benefits of new construction?
Well, one, obviously the roof's brand new,
the heating system is brand new,
um, everything is brand new, right?
So, you don't have to worry about stuff
for quite sometime, right?
And your honey-do list, you got your weekends back
You're not gonna spend all your time
doing these little repairs around the house.
So that's kinda cool.
So another benefit of new construction is well,
in this market, you know, we have limited supply
and a lot of demand.
So existing houses, they're getting snatched up
and typically that involves multiple offers,
selling prices going way over the asking price
and things like that.
With new construction, its typically the buyer
that comes in with, that is well qualified,
that is Pre-Approved
and can get to the closing table for the builder,
is the one that's gonna get it.
No haggling, no extra, you know, bidding up
and stuff like that.
So that can be a huge benefit
if you don't have time
and you wanna get moved in right away,
then you might go with one of those
Inventory homes or a Spec home
and it will be ready to move into,
just about the time you're done with closing escrow.
You could also have one built
and there's different links of building times,
depending on the builder and the community
that you are looking at.
And it could be as quick as six, seven months
or it can be as much as 12 or 14 months.
So, if you have a time factor
that you could plug into that and you're flexible
then new construction can really be a benefit.
Another great benefit and don't let this one slip by
is that when you go under contract with your new build,
you're locking in the price on that day.
Now you house may not be done for six to 12 months
but when you actually move in,
when you start your loan,
when you start making your payments,
you're making, you're buying a house
that is priced six months or 12 months earlier.
So does anybody wanna raise a hand
on who would like to buy a house today
for a price as six months ago or 12 months ago?
I think I see a lot of hands
going up there in the back, right?
So are there downsides to new construction?
Well, of course there is.
One of the things that come to mind is the landscaping.
With the existing house,
you can pretty much count
on having normal tall trees, taller trees, more filled out,
maybe the grasses in on the Back yard,
the fences are all in,
all the irrigation is in.
So those could be things you could expect to see
in an existing house
that you might not necessarily find in new construction.
Another thing would be too is that,
things in the house that really appeal to you
that the previous buyer put in.
Maybe it's an inground pool
or maybe pavers on the back patio
or a built in barbecue area in the Back yard.
Those kinda things you wouldn't necessarily find
in new construction but it might be there
in the existing home.
Another downside to new construction
and I'm kinda scraping here
but in an existing home, an existing neighborhood,
you're gonna know what that neighborhood is like.
You're gonna know,
is this the kinda neighborhood
where you can put your car up on blocks
and leave it set there for year after year
or is this the kinda neighborhood
where everyone keeps their Front yard
just obsolete meticulous.
And new community, I mean you might have HOAs
but you really don't know what it's going to be like.
Another thing is that new construction;
maybe you're the first house on the block
and you have a single-storey
and you don't know if next-door neighbor
around all sides of you are gonna be two-storey houses.
And maybe you don't like people
from their bedrooms upstairs looking down on your Back yard.
With an existing home, you already know what the layout
of the land is out there
and you can go with it or not but at least you know.
There are again pluses to new construction
and one of them might be that,
lets say you're looking at an existing home and maybe
it's been renovated and really fixed up nice
but there could still be
some little hidden problems inside the walls
that even that inspector
that you wisely chose to have come up
and take a look at your house, he couldn't see.
So, with a new home,
you know, they had, the City or County was out there
and they were, you know, had Pole Permits
and they had the inspections for those permits
to make sure that the wiring is fine, the plumbing is fine.
But with the renovation project
and maybe the renovation project happened like 30 years ago
and you just don't know
if all the safety things were done right
and even they may have been done right 30 years ago
to code then and codes changed
and it is not as safe as you might ultimately want it
to be for your kids,
So when looking at new construction versus existing homes
there is a lot of things to consider
and just one last little thing to consider
and this might not even be an issue is the financing.
So new homes, you know, your regular run-of-the-mill
and we are not talking of mansion here,
you know, you could get financing on that very easily.
An older home, it might be harder.
It might not be able to go FHA or VA
because it's old and it doesn't meet the requirements
that those different loan packages have
that a new home would probably just (whooshing)
just fly right through the process.
Well, I certainly hope you've found this video interesting
and don't forget to go ahead and like, share and subscribe
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of the future videos or audio
and as always this is Treasure Valley Dave,
looking forward to helping you get home.
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