Greg Williams
Dec 10, 2023
When buying a home, you have the choice between buying a resale home (one previously lived in) or a new construction home. As you consider your choices and what you can afford, the fear may be whether buying a new construction home is a sound investment.
While a new construction home can come with a higher up-front price tag compared to a similarly sized older home, the long-term return on investment may be beneficial. Following are 8 benefits of new construction homes to consider when weighing the options of new vs. used.
1. New Construction Homes Can Significantly Lower Your Maintenance Costs
One benefit to purchasing new construction homes is that they typically don’t require as many upgrades or major repairs for a number of years. With a new construction home, you may also be able to choose some of the home’s finishes and features offered by the builder before construction is complete (unless you are considering a completed construction home).
New construction homes also come with shiny, new appliances and mechanicals. Most appliances and the home itself offer warranties of varying lengths. New construction also means the inclusion of more energy-efficient fixtures and appliances that equates to cost savings on energy bills.
An energy-efficient home may also boost the home’s resale value. Most buyers place energy-efficient appliances and windows in the “essential” or “desirable” category when they’re evaluating must haves in their new home. New construction homes comes with these items include and save the buyer on the expense of renovations to a pre-owned home.
2. Community Amenities Add Value
New construction home communities typically provide property value to residents with amenities such as parks, walking trails, shopping centers, restaurants, pools, and gyms (or a close proximity to most of these). A sense of community with friendly neighbors and frequent activities also can affect home price tags in the future.
The old adage in real estate is location, location, location. Value often comes with great locations where people want to live. That’s one way in which new construction can hold its value for years to come.
3. The Cost of New Construction May Be Significantly Less Than You Think
With a new construction home, you’ll have more control over the outcome of your new home. Purchasing a planned home or partially built, new construction home affords the buyer the chance to customize it to their unique personal preferences. Those buyers considering finished, new construction homes do not get to enjoy this perk, but do have the opportunity to shop for a finished product that fits all, or most of their needs.
Renovating an older home to meet the same standards as new construction homes requires working with a contractor or doing improvements yourself. These renovations will cost time and money, while affecting quality of life if living in the house while undergoing renovations.
Minor renovations to a pre-owned home do not necessarily break the bank, but whole home remodels can run on average $40,000 to as much as $300,000.
4. New Construction Homes Often Include Technology Enhancements
A major benefit of purchasing a new construction home is the latest technologies are often built into them. When evaluating if buying a new construction home is a good investment, consider the cost to upgrade an older home with the tech-savvy features included in many new construction homes.
New construction homes offer features such as:
- Keyless entry
- Remote garage access
- Smart lighting
- Programmable thermostats
- Device-compatible voice assistance
- Advanced wiring for reliable connectivity
Features like these are essential for many future homebuyers and can greatly increase your home’s resale value if you decide to sell down the road.
