Over the past couple of years, we have been experiencing a historically low supply of existing homes for sale on the market in the Denver area. This has left serious home buyers frustrated as home search options were limited, multiple offers were common and bidding wars broke out. As a result, many homebuyers have been and continue to turn to new construction as a solution to finding their next home.
Interestingly, according to Metrostudy, a Hanley Wood company, there were 11,038 home starts across the metro Denver area in 2016. This was a 22% increase in new builds over the previous year which is a testament to the fact that more homebuyers are considering new construction during times of tight inventory for pre-existing homes.
A new build home isn’t for everyone but it can definitely have its benefits. Here are some reasons to consider a new build.
Many home builders allow buyers to participate in the process of designing the property and selecting the interior finishes. You have the opportunity to create a living space specifically tailored to your tastes and preferences.
Higher building code, energy efficient standards
Over time building codes evolve. Today builders must meet codes and standards that require higher efficiency insulation, doors, and windows than what was required years ago. For you, this means higher standards of quality and cost saving efficiencies.
The typical home warranty for a new build is at least one year. The home builder will take care of any needed repair work in your newly constructed home with no additional out-of-pocket costs to you. This provides added peace of mind after move-in.
Modern new homes are engineered specifically to minimize maintenance requirements. Features of newly constructed homes should hold up better than existing homes, which may have experienced years of wear and tear.
Newly constructed homes often include fire safety features that may not be present in properties built years ago. Things like fiber-cement siding, stone, brick, stucco and treated wood are less of a fire hazard than other building materials. Plus, all newly constructed homes are required to have hard-wired smoke detectors, which provide back-up if batteries are dead.
Newly constructed homes often include green or energy-efficient appliances and systems such as high-efficiency stoves, refrigerators, washing machines, water heaters, furnaces, or air conditioning units. Cost savings from high-efficiency appliances can add up over the course of homeownership and reduce your gas, electric and water bills.
New homebuyers may be able to take advantage of mortgage financing perks made available through the builder’s own mortgage company. Often times builders will pay points or closing costs for you or buy-down certain rates that will help your bottom line and save you money.
Building a new construction home may take a little longer than purchasing a pre-existing home, but when you consider these long-term benefits it can be worth it especially in a market where existing homes are harder to come by due to lack of inventory for sale on the market, multiple offer situations and bidding wars.
Thinking of building a home? Read this first: 6 Reasons to Use a Realtor When Buying New Construction.