Let's Talk New Construction

It's that time of year again! We will begin to see new homes being built all over the Tri-State throughout the next few months. In our neighborhood alone, there are two homes being framed and one that just completed construction (15011 Kingsmont -- check it out -- it's gorgeous!). 

It's always exciting to see these new homes being built, and we like to show new construction as an option to buyers along with existing homes because a brand new home can offer some really nice benefits. 

Some buyers shy away from new construction because they feel it has no character and is much more expensive. If you want a 1920s bungalow, new construction might not be your best bet, but please do not discount a newly built home purely based on price because the benefits might justify paying a bit more. 

One clarification we'd like to make is that buying new construction is different from building. If you build, plan to spend about $120/ square foot in the Evansville area, vs. $100 or less for new construction and preexisting homes. Most people choose upgrades and customize floor plans when they're building and that increases the price quite a bit. Buying new construction typically means a buyer is purchasing a spec home a builder has been working on for the sole purpose of selling it. These homes are upgraded nicely too and typically fit into the style and price range of the development where they are built.

Let's take a look at a few of the pros and cons of buying a new construction home.

Pros:

• The price of the home is very straightforward. Factor in building supplies, payments to contractors, land, and a profit margin. That's it. Buyers don't have to worry about sellers who believe their home is the most beautiful in the neighborhood and have a strong emotional attachment to it.
• Taxes are lower at first. When you get your first tax bill (or 2 depending on timing) your rate will only be figured for the land your home sits on. Once the home is assessed, your tax bill will go up to normal range, but you can enjoy at least one low property tax bill.
• You have a brand new home under warranty. All your appliances are new, your flooring, electrical work, plumbing, roof, foundation, paint and everything are brand new! Most builders also offer at least a 1-2 year warranty on the home and often longer on the foundation. You get peace of mind.

• They offer the best Energy Efficiency. New construction homes have been built according to the most recent building code standards. Rest assured your home is as energy efficient as it can be because it has new insulation, heating/cooling systems, and water heater. Who wouldn't want a lower Vectren bill??
• Safety and Maintenance. New homes tend to require less work because everything is in excellent working order. Just do your routine maintenance throughout the year, and you should have more free time to spend doing other things. New homes can also be safer because they feature things like updated circuit breakers, garage doors with sensors, and paint/stains/carpet that are more environmentally friendly for your family.
• Updated and current design. Last but not least, new homes showcase the most up-to-date finishes. Builders are using the materials buyers want to see in a home. You'll see a lot of granite countertops, hardwood floors, bronze or brushed nickel fixtures, stainless steel appliances, and neutral carpet and paint in new homes. There is no need to worry about updating the home because it's current.

Cons:

• They might be a little pricier. They could cost a bit more up front and you might not be able to negotiate much on the price. Builders want to be competitive, so they really try to price their homes fairly and accurately.
• Future construction. If you buy in a brand new development, understand that you'll be around construction for a couple years as more homes are built.
• Big trees. If you want large, mature trees, you probably won't find that in a neighborhood with new construction. Many new neighborhoods in our area are being built on land that was formerly farm ground.

• Lack of "projects". If you want to renovate and customize a home, you probably won't want new construction. Find a great preexisting house to update and fix to suit your taste.
• New homes are often built on smaller lots. It's rare in this area to find a new development with home sites larger than 0.25-0.3 acres. Older neighborhoods do boast larger yards, more along 0.5-1 acre in some cases. 

When you're ready to begin looking, just weigh these options. It's always a good idea to at least look at both preexisting homes and new construction to get a feel for what's available. The more you know, the more confident you will be in your decision when we find your dream home!

Have a wonderful week!