New homes often cost more than used homes. However, new homes can be less expensive in the long run because they usually require less maintenance and are more energy efficient than older homes. New homes can also be easier to live in, with their modern floor plans and state-of-the-art amenities that are often lacking in older homes.
But living in a new home development isn't for everyone. Typical complaints are that homes in developments lack architectural diversity and mature landscaping. And new developments are often located on the outskirts of town, which makes them less convenient.
Living in a new community while construction is still in progress around you can be a nuisance. There is noise and dust to contend with, as well as access problems.
New homes are rarely completed on time, which can present logistical problems for buyers who are selling one home in order to buy another. The best way to deal with this uncertainty is to reserve the right to rent back your current home if you need to. This way, you can avoid having to move to interim housing if your new home isn't completed on time.
New homes are often pre-sold before they are built. The developer usually hires professional decorators to furnish model homes that display the various floor plans offered in the development. However, model homes rarely depict the standard finishing details you can expect to be included in the price of your new home.
The pricing of new homes is usually based on a standard set of finishes (floor coverings, countertops, appliances, fixtures, etc.). But model homes used to sell homes in a development are usually enhanced with upgraded finishes. So the granite countertop in the model kitchen you fall in love with might not be included as a standard finish in the price of the home. You may have to pay extra for this.
First Time Tip: Before you buy, ask to see sample of the standard finishes that will be included in the purchase price. Ask the developer for the name and number of a homeowner in the development who bought a home with the standard finishes. Call and ask if you can take a look.
Before you agree to pay for upgrades, find out how much the developer will charge. Then do some comparison shopping on your own to find out how much it would cost you to buy the upgrades yourself. Some developers add a huge mark-up for upgrades. If this is the case, you might be better off by having the home completed with the standard finishes and installing upgrades at your own expense later.
Making changes can be a nightmare depending on the development. Most developers are only set up to provide the standard product and a limited number of upgrades. Any deviation from this may not be possible, except for an exorbitant cost. It may be easier and less expensive to have your own contractor make the changes you want after the home is completed.
Even new homes have problems, so make sure that the development has a maintenance division that will take care of after-closing defects if they arise. Talk to homeowners who have purchased the developer's homes in the past to find out how responsible the developer is to taking care of customer complaints.
The Closing: If a development is in high demand, there may be no negotiating on price. In softer markets, even if the builder won't budge on price, you may be able to negotiate on the finishes.
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