New Construction: Pros and Cons

Choosing new construction can be a rewarding experience but there are many differences and trade-offs, when compared to purchasing a resale. At Nuvilla Realty, we want to make sure you are informed and know what to expect, so you can make the right decision for your family.

Did you know that working with a REALTOR® cost you absolutely nothing? Having a professional guide you through the process will help you avoid costly mistakes and lawsuits. 

 

New construction home blueprints

PROS

  • Brand new/never lived in.
  • Customization of design (varies between custom/spec). 
  • No bidding war/multiple offer situations. 
  • Energy efficient windows, insulation, appliances.
  • Incentives, often if you use the builder’s preferred lender.
  • Extensive home warranty. 
  • Lower home insurance premiums.
  • Pex plumbing to provide freeze protection.

CONS

  • Limited negotiation.
  • Open ended close date. 
  •  Material delays.
  • Sales price can fluctuate depending on material cost. (BE WARY OF THIS).
  • Lack of neighborhood character. 
  • Higher Taxes. 
  • Limited on past flooding information/drainage.
  • Higher HOA fees. 
  • No option period.

Custom Build vs Spec Home

Within new construction you have two options, custom builds and spec homes. One of the biggest differences is sales price, the custom build route will be more costly, but you will be able to customize everything from the floor plan to finer details like cabinets and crown molding. It is not uncommon for buyers to spend up to 10% of the sales price on upgrades like flooring, cabinets, etc.

Spec homes can still offer a lot of value, but you will be limited on the upgrades and finishes. You also won’t be able to make changes to the floor plan like you would with a custom build. Spec homes can be a great option for buyers looking for a home that will require less initial maintenance and upkeep. When you choose new construction you won’t lose any sleep over costly repairs that can be associated with buying a resale. 

Things to look out for...

Here are a few things to look out for before signing ANYTHING with a builder!

  • Clauses in the contract that allow sales price to change due to fluctuating material cost. 
  • Whether or not the builder incentives will apply if you choose to use a third party lender? 
  • Is a privacy fence included? 
  • What landscaping the builder will provide?
  • What is covered under builder’s home warranty?
  • Be sure to check the builder’s reviews. 

We are always available to answer any questions you may have.

Send us a message below or for a faster response call or text 281-352-9972.

Nuvilla Realty Houston

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