Buying a new home is a stressful but exciting time for most people. It's usually the biggest purchase you will ever make in your life and you want to get it right. In some cities, it can be difficult to buy a home due to the amount of competition for the low number of houses that are on the market there. In others, there may be more houses available, but they may not be exactly what you wanted.
There is an option that you might not have considered before: looking into new construction homes. They can be one of your best bets to finding the right house for you. Here are some reasons why you should consider a new construction home.
There Are No Bidding Wars
You might be finding that almost every house you make an offer on, there are several other potential offers on it too. This creates bidding wars. In many cities, where the housing inventory is low, you will encounter several bidding wars which drive the original price of the house up and potentially beyond what you are willing to buy it for.
Many people lose out on houses due to bidding wars. However, when you consider new construction homes, you won't be involved in a bidding war for the home you want to buy. New construction homes are purchased directly from the builder from a site plan and sometimes before the home has even been built. You won't lose out on the home due to other buyers bidding up the house price.
Home Value Can Go Up Faster
When you buy a home in an existing neighborhood, that home's value will eventually increase and you could sell it at a profit down the road. This can take several years to happen. When you look into new construction homes, you may find that builders have several phases they are working on in the same development.
Each phase is released at a certain point during the construction of the houses. If you purchase one of the first phases of the development, you might find that your home's value will increase as each subsequent phase is built. This is due to the developing neighborhood and the demand for buyers to live there. The more demand there is to buy homes there, the higher the value of the houses will become.
This can take several years as each phase is completed but it is typically faster than if you bought a home in an existing neighborhood. In some cases, your home's value could go up before you even move in. Look for new construction homes in an area you like.