If you’re getting ready to buy your first home, you might be wondering whether it’s better for you to buy an existing home or a newly constructed home. Conventional wisdom suggests that new, younger home buyers should be looking at “starter homes” or “fixer-uppers,” but recent trends show that larger numbers of millennials are choosing new home construction over older, existing homes. We at Lowder New Homes have noticed that many first-time homebuyers in Alabama are gravitating toward small towns and suburbs rather than older, more established neighborhoods — in part because they’ve figured out they can enjoy more affordable luxury in the suburbs.
While every situation is different, in many cases, it’s advantageous for new homebuyers to choose new construction as their first home purchase. Let’s explore a few reasons why.
When you purchase a new construction, you have many options for “making it your own” from the very beginning. Your builder can walk you through decisions for everything from cabinetry to appliances to flooring to paint. You’ll know up front what various upgrades might cost, giving you greater control over the price of your new home.
Simplifying the Search
Once you’ve decided on a builder and a neighborhood, your house hunt is effectively over. No need to look through dozens of existing homes to find one that’s just right.
If you’ve never owned your own home before, the idea of budgeting for ongoing maintenance can take some getting used to. With a new construction, not only is everything new, but you’ll also benefit from warranties which protect against defects and repair costs for several years. This way, you can ease your way into routine maintenance for your home over the next few years.
Many existing homes are “fixer-uppers,” meaning you can get them at a reduced cost but you’ll have to do some repairs and remodeling. If you’ve never owned before and you’re unfamiliar with the work involved, this can be a daunting prospect. With a new construction, you don’t have these issues; once the home is complete, it’s move-in ready. With no remodeling costs, new construction homes are often actually cheaper than fixer-uppers in the long run.
Good Value, Good Investment
While housing markets can be affected by many factors, new construction homes, in general, tend to hold their value better and appreciate faster than existing homes. When you buy a home in a new development, you also get the benefit of being part of founding a new community, and you can be part of making good collective decisions to improve home values throughout the neighborhood. Your new construction home is an excellent long-term investment [LINK] that is set to pay off over time if you ever plan to sell.
New construction homes often come with builder incentives that you won’t see with existing homes. For example, many builders have periodic deals to cover your closing costs or offer a certain dollar value in free upgrades. If you purchase a new construction during a slower time of year, these incentives are more common. One of the benefits of choosing a new construction with Lowder New Homes is that we offer various incentives throughout the year.
In the Montgomery, Alabama area, Lowder New Homes has been building high-quality new construction homes for first-time homebuyers for more than 60 years. To learn more about the benefits of buying a move-in ready new construction home, call us at 334-270-6789 — and be sure to ask us about our ZERO closing cost programs and up to $5000 in free upgrades!