Austin Realtors are often asked should we buy a pre-owned home (resale) or a brand new never lived-in home from a builder. Naturally, there are compelling reasons for and against each option. Let’s take a closer look at some of the pros and cons of buying new construction in Austin.
Pros of New Construction
- It gives the buyer the right to choose floor plans, front elevations, lot selections, color choices, appliance selections, choice of kitchen cabinets, and counter tops, and upgrades that include type of flooring, light fixtures, and even outside decks or patios.
- Most newly constructed homes will include fences, grass, sod and basic landscaping in the front yards.
- The builder usually offers financial incentives which may include builder paid buyer closing costs or a reduction in the sales price. Other incentives include appliances, such as, refrigerator, washer, dryer, garage door openers, or even a few ceiling fans.
- Austin builders offer limited warranties and a pre-closing walk through. Buyers will appreciate the first year warranty; as you live in the home you will eventually discover defects or deficiencies not readily apparent during a pre-closing walk through.
Cons of New Construction
- Generally the buyer will not be able to modify or make changes to the builder’s floor plans, especially if working with a big, production builder.
- On-going construction in the neighborhood during the subdivision’s build-out period. Be prepared to see construction crews, equipment and construction materials for several weeks, if not months after you move in.
- Simply, not knowing how the neighborhood will turn out until after all the homes are completed.
- Many new subdivisions will have a Homeowners Associations in which participation is mandatory. Fees could be several hundred dollars per month and rules are usually quite restrictive.
- Builder purchase contracts are written by and for benefit and protection of the builder and developer. Work with an experienced Realtor or real estate attorney who can help you understand your obligations.
- Often, the buyer’s final costs are substantially more than the home’s market value. In other words, you can’t sell it for what you paid for it.
Model Homes Can Be Deceiving
When it comes to buying new construction, we strongly suggest buyer beware. Model homes often have thousands of dollars of enticing upgrades and carefully crafted presentations that create unrealistic expectations in the minds of the consumer. Don’t let the on site agent pressure you into the purchase or sell you on the upgrades. Some upgrades can be done after closing for a lot less. Work with a professional, experienced Realtor who can help you evaluate each community and builder. Take your time, think, ask and seek outside advice before signing on the dotted line.
Considering Buying New Construction?
Let us help you determine whether new construction is the right decision for you. With over $200MM of real estate sold, we have the experience and market knowledge to help you evaluate your options. Check out our Buyer Representation Program to learn how we’re different from other Realtors. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to get started.
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