Prospective home buyers in the Austin area have the choice whether to buy new construction or a resale. This post addresses the advantages and disadvantages of buying a newly constructed home from builder/developer. First, however, let me offer what I know is the soundest piece of advice about buying into a new sub-division: Discover the best lot to build upon, and if you can afford to, buy it. Buying the best available location is a surest way to protect your investment and better enjoy your time as owner. Here are the 5 advantages and 5 disadvantages of buying new construction in Austin.
5 Advantages of Buying New Construction
Is buying a new home in Austin for you? Here are 5 reasons to select new construction vs a resale or “used” home.
#1: Location in the Path of Growth
Home builders spend a great deal of time and research on deciding where to build to ensure the location offers exactly what buyers want in a new home and neighborhood, including access to top schools, shopping, proximity to highways, recreation and more.
#2: Ability to Customize Plan
Everything is brand new and in prime condition. You have the ability to choose every style and color scheme from tile to wall colors to kitchen cabinets. And, your new home will be more energy efficient with better insulation.
#3: Warranty Protection#4: Sense of Community
In a new development, everyone is a new owner and essentially looking for a similar living experience. It is often much easier to make new friends and build a social network within new community versus an established neighborhood.
#5: Better Long-Term Investment
The formative years of new home between 7-10 years of age maintenance costs are as low as they ever will be; the most costly maintenance expenditures are generally needed within 20-30 years. A more modern design that includes the latest technology, building materials and improved energy efficiency will bring you a much better return on investment over a second resale of an older home.
5 Disadvantages of Buying New Construction
Of course, there is always a flip side. Here are 5 reasons you might want to choose a resale over new construction in Austin.
#1: Neighborhood Composition Uncertain
Makeup, growth factor and even the finished appearance of the neighborhood is yet unknown.
#2: Small Lot Size
You may have to sacrifice lot size to compensate for the fact that it is a new home. Builders cut back on lot size before sacrificing the home’s habitable square footage.
#3: Financing Costs More Expensive
You may not be able to lock your interest rate and loan fees prior to completion risking higher costs.
#4: Blank Slate
Keep in mind that a new home is a bit of blank slate, a clean palette. It needs everything from decorating to blinds and shades to cabinet linings, and a lot more. Landscaping and surrounding trees are undeveloped. It takes energy – and money – to make all of the choices necessary to change the house from stark to inviting.
#5: Top Price – Over Price
When the costs of all the upgrades, change orders and enhancements have been calculated, you may be paying top dollar for the property, and should you be forced to sell soon, you may not be able to recoup your entire investment.
People Buy Location First and a Home Second
Unless you have a definite predisposition to own a brand new home you should avail yourself of all the choices in the market. Whether buying a new home or something from the existing housing stock you need to be concerned – first and foremost – with the location and the neighborhood.
Need Help Weighing the Options? Talk to Your Buyer’s Agent
Spend enough time finding out about your choices, talk to a knowledgeable, experienced Buyer’s Agent about what you are looking for and where you might find that type of property. Learn as much as you care to and you’ll make the right decision.
Which Austin Neighborhood is Best for You?
Ultimately, your decision will be based on the needs of you and your family, your tolerance for risk of the unknown and the constraints of your budget. One thing is certain – regardless of your choice between buying new and resale, there are hundreds of nice neighborhoods in Austin. We’d be happy to help you evaluate which might be best for you. Fill out our Austin Neighborhood Finder, email us at info@11OaksRealty.com or call us at (512) 827-8323 with what you’re looking for and we’ll suggest some neighborhoods.