Low interest rates and high demand mean a housing shortage for first time home buyers. With multiple offers, high quality, affordable homes aren’t staying on the market for long. However, new construction homes may be able to help close the gap between available homes and buyers in the market.
Pros: Buying a new construction home reduces the chances of running into a bidding war and often allows you to pick your lot and customize some of the features. You also get a brand new, turn-key home that won’t need additional renovations or repairs before you can move in. Most also come with extended builder’s warranties and manufacturer warranties that will help protect your investment.
Cons: One of the downsides of purchasing a new construction home is that it may be weeks or months before construction is complete, depending on how early in the building process you purchase. Also, you will most likely have to place a deposit to claim your home well before construction is complete.
Before you buy a new construction home, make sure it was built by a company with a good reputation and review the terms of the warranty to make sure you’re covered if something goes wrong early in your homeownership. You should also be able to tour a model home or existing property to see the quality of the build before you buy.