Navigating the New Construction Market: Insights from a Veteran Real Estate Agent

Navigating the New Construction Market: Insights from a Veteran Real Estate Agent

In my two decades as a real estate agent, I’ve witnessed the ebb and flow of the housing market, with particular attention to the new construction segment. Lately, the price tags on new homes have skyrocketed, and I’ve observed this trend with a critical eye, especially in the mid-level market, ranging from $400,000 to $600,000. Despite these rising costs, my experience tells me there’s more to consider than just the initial price.

It’s common knowledge in our industry that new constructions can come with a hefty list of additional expenses. From unfinished basements to basic landscaping needs, buyers often find themselves shelling out upwards of $100,000 extra to make their new house feel like a home. This reality raises a significant question: Where will this money come from? For many, this means dipping into savings or taking on additional loans, escalating the overall financial burden.

Moreover, the aftermath of COVID-19 has further complicated the landscape, with supply chain disruptions extending construction timelines well beyond initial estimates. This delay not only tests buyers’ patience but also exposes them to the risk of inflated costs and scheduling conflicts among subcontractors, complicating the move-in timeline.

Quality, or the apparent decline thereof, stands out as my primary concern with new constructions. The shift from durable materials like wood to cheaper alternatives such as plastic trim work, not to mention the downgrading of flooring options, suggests a compromise on quality that buyers should be wary of.

Opting for new construction early in a subdivision’s development can also pose risks. While early buyers might have their pick of lots, they often pay a premium. Yet, as a development nears completion, builders may offer incentives on remaining lots that can diminish the value of earlier purchases.

Despite these challenges, the allure of a brand-new home—free from previous owners’ problems—remains strong. However, based on recent experiences with clients, even new constructions can come with their share of issues, often leading to disputes with builders over uncompleted work.

Given these observations, I lean towards existing constructions. The market offers beautifully updated homes that are move-in ready, often providing better value than their newly-built counterparts. While it’s true that these homes might command a premium, they frequently emerge as the more financially sound choice.

This article isn’t meant to deter you from buying new construction but to offer a perspective grounded in years of experience. If you’re navigating the housing market and weighing your options, I’m here to offer guidance and support. For a more detailed conversation or to explore your real estate options, don’t hesitate to reach out to me. Let’s find the perfect home for you, together.

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