When is buying a new home often cheaper than pre-owned homes? More often than you think.
Many people looking for a home in Daphne AL, or the surrounding areas of Fairhope, Spanish Fort or Mobile AL avoid new construction. The reason is they believe they’ll never be able to afford it. Only really rich people buy new homes, right? Actually, the answer is no. While it is true that custom homes can be expensive, there is a cost-effective alternative that many home buyers don’t consider (or even know exists). It’s called the production built home, also known as ‘homes built on spec’. It’s a home that a contractor has started to build and hasn’t finished yet. You can have the home YOU want, save thousands of dollars and move in faster than a pre-owned home.
Why Buying a New Home Might Be Quicker than a Pre-owned Home
Humans can be impatient. They might not want to wait a few months to get the amenities they want so what happens? They buy an older home and figure they’ll remodel it. For those homebuyers new to the housing market, they might not realize how much major remodeling projects cost, so here’s an example. According to a ‘Remodeling Magazine’ report, a mid-level bathroom renovation that’s 5’ x 7’ can cost around $17,000, on average in most metro areas. To make matters worse, only 74% of that renovations can be recouped at resale.
Today, most homebuyers want more modern features, like a large ensuite bath, walk-in closets or a bigger kitchen for entertaining… or another way to put it, they want features not typically found in older homes. That’s why waiting a few weeks or a couple of months for a new home is the better option. You’ll have up-to-date amenities at move in and you avoid expensive remodeling costs that you’ll never completely recoup.
Options on a Home Built on Spec
Now, you might wonder, “If a home on spec is already under construction what options do I have?” The answer depends on how far along the project is. For example, if the kitchen is finished you’re stuck with that black granite countertop. However, if it isn’t finished yet, you might be able to pick white features instead. Maybe you want a partition in the dining area or French doors for the den. Perhaps you want a wood fireplace and gas logs. If you do a contract early enough, some of these changes can be made for your home.
Other changes you can make in a spec home might include things like wall colors, cabinet door styles, lighting choices, carpets vs. hardwood, etc. It’s true when you buy a spec home you have to limit the choice regarding what changes to make (so you stay within your budget). However, you have much greater control over where to spend your money. More often than naught, your new home will be closer to exactly what you want while also having a fairly shorter ‘move-in’ timeframe.
New Home Cost vs. Pre-owned Home Cost
But there’s another side to buying a new home that many people don’t realize…It can cost less than a pre-owned home. Yes, you read that correctly. Here are some examples of how a new home is cheaper…
- Stricter building codes mean you have lower energy and insurance bills. That saves you hundreds each year and saves you thousands over the life of your residence in a new home.
- No costly remodeling projects since new homes are designed to meet today’s families’ needs
- Get the latest design trends like walk-in closets, ensuite bathrooms, double vanities, etc. rather than trying to build them yourself.
- Choose decorative finishes, such as countertops and flooring, which are brand new and match your style.
- Avoid spending time and money on a to-do list of inherited problems.
- With a knowledgeable Realtor®, you can negotiate with the builder for extras, like appliances, fencing, etc.
- Not only does a new home offer a home warranty for peace of mind, you get a fresh, clean home that no one else has ever owned.
So how do you navigate through all of this to find ways to afford a new home? It starts with finding a Realtor® with a "Certified New Home Specialist" designation, like me. They’ll help guide you through the process from start to finish. Now, if you live outside the Gulf Coast areas of Daphne, Fairhope and Spanish Fort, you can find local agents near you who can help. But to learn more about getting the house you’ve been dreaming of owning without extra work or added expense, call or text me at 251-510-0629 or email RealtorBarbaraReeves@gmail.com today.