Buying a home this spring? You’re probably dealing with the limited number of homes for sale. If you’re having a hard time finding a home you love, it may be time to look at newly-built homes.
New Home Construction Is an Inventory Bright Spot
When looking for a home, there are two options. You can choose between existing homes and newly-constructed ones. While the number of existing homes for sale has increased this year, there are still fewer available than there were in more typical years , like back in 2018 or 2019.
The good news is that there are more newly-built homes to pick from right now. The graph below uses data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development to show how new home construction is ramping up in two key areas.
Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now.
Builders Are Offering Incentives To Help with Affordability
And to sweeten the pot, many builders are offering incentives like mortgage rate buy-downs and other perks for homebuyers. This can help offset today’s affordability challenges while also getting you into your dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer more for you than the typical homeowner:
“Builders aren’t rate locked-in. They would love to sell you the home because they’re not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”
Why you should partner with a real estate agent
However, buying from a builder is different from buying from a home seller. Builder contracts can be complex. A trusted agent will be your advocate throughout the whole process.
While builders typically have sales agents on-site, having your own agent ensures you have proper representation throughout your home buying journey. As Realtor.com states:
“Keep in mind that the on-site agent you meet at a new-construction office works for the builder. So, as the homebuyer, it’s a smart idea to bring in your own agent, as well, to help you negotiate and stay protected in the transaction.”
Your agent is well-versed in upcoming developments that could influence your decision. For example, you’ll want to know if there are any plans to construct a highway or add a drainage ditch behind your prospective backyard. An agent also has expertise in the construction quality and reputation of different builders. They can give you insights into each one’s track record, customer satisfaction and construction practices. Armed with this information, you can choose a builder known for consistently delivering top-notch homes.
The most obvious benefit to opting for new home construction is the opportunity to customize your home. Your agent will guide you through that process and share advice on the upgrades that are likely to add long-term value to your home.
Bottom Line
If you are interested in buying or building a new construction home, having a trusted agent by your side can make a big difference. They will be your go-to resource for advice on construction quality and builder reputation, negotiating contracts to get you the best deal and helping you decide on which customizations are worthwhile.
