New construction has its advantages: modern layouts, energy-efficient systems, smart gadgets, and a clean blank slate to make the house into a true home. But is there a downside? What are the pros and cons of new construction homes?
The Perks of New Construction
When thinking about new construction pros and cons, the perks spring easily to mind:
Brand New Everything
Every element of your space will be freshly installed, with that new home smell throughout! You’ll be the first to use the appliances, bathe in the tub, and open and close the windows. No paint chips, no loose knobs, and no mystery stains that you can’t get out.
No Repair Expenses
With brand new systems, you won’t need to worry about repair costs, at least for a while. Most builders include robust warranties on their work, so you’ll have peace of mind and room in your budget for the first few years.
Energy Efficiency
Among the new construction home pros and cons, the biggest money-saving advantage is the energy efficiency features of a new home. With low-E windows, a high-efficiency HVAC system, and fully functional weather seals, homeowners report much lower energy bills.
Modern Layouts and Functionality
Life has changed considerably, even from 20 years ago. New construction Homes reflect the way families live today, with bigger closets and garages, more electrical outlets, open layouts, and second-floor laundry rooms. With a new build, you don’t need to worry about remodeling as soon as you move in or living with inconveniences until you have a chance to renovate.
Customization Options
If you buy early, you can select your preferred layout and choose custom finishes like cabinets, counters, flooring, and lighting. You can move right in without even having to paint the walls.
Smart Home Technology
Integrated smart gadgets make everything more efficient. Many builders now design homes with smart home technology built in, including thermostats, lighting, security cameras, and door locks, which can all be controlled from a smartphone. You won’t need to retrofit old wiring or install separate devices later, and with the builder’s warranty, you know everything will work smoothly from day one.
Up-to-Date Building Codes and Safety Features
New builds must meet current building codes and incorporate safety improvements that have evolved over decades. This means proper electrical grounding, CFGI outlets in kitchens and bathrooms, smoke and carbon monoxide detectors, fire-resistant materials, and structural engineering that meets current standards.
Potential Downsides of New Construction
When learning the pros and cons of new home construction, many home buyers are surprised to learn about the downsides:
Higher Purchase Price Per Square Foot
New construction typically costs 10% to 30% more per square foot than comparable existing homes in the same area. Of course, you’re getting new materials and appliances for that premium, but some of it also goes to builder profit margins and the higher prices buyers are willing to pay for new builds.
Limited Negotiating Power
Among the new construction home pros and cons, one of the biggest disadvantages is that you don’t have as much negotiating power with builders as you do with a homeowner selling their house. You might be able to negotiate some small concessions, but builders often have waiting lists and can close at full price without negotiation.
Lot Premiums and Upgrades Can Add Up Quickly
Builders advertise base prices that look competitive, but once you start adding in a desirable lot and premium finishes, the final cost of a new build can be much higher than you budgeted for. If you’re in the market for new construction, leave a sizable buffer for these upgrades to avoid having to make stressful decisions in a short time window.
Construction Delays
We all know people who planned to close on their house a year ago and are still waiting for their unit to be finished. Problems like weather delays, supply chain issues, and labour shortages can extend a construction timeline by weeks or months beyond the projected completion date. When buying new construction, plan for delays by securing temporary housing if necessary.
Potential for Settling
It’s common for new homes to settle during their first few years as the soil underneath compacts and the structure stabilizes. Settling is to be expected and is covered by the builder’s warranty, but reporting issues and getting them fixed can be inconvenient and time-consuming.
Lack of Infrastructure and Mature Landscaping
New builds are often in new subdivisions where roads are unpaved, transit routes have yet to be established, and there are no trees, parks, or nearby shops. In time, these areas will look more like established neighborhoods, but it can take years for that to happen. If yours is one of the first houses to be completed in a new neighborhood, you’ll also be living in an active construction zone that might not be completed for a few years.
Minimizing New Construction Pitfalls
Now that you understand the pros and cons of new home construction, here’s how you can lessen the impact of common problems:
Research Builders Thoroughly
New home builders vary in quality and reliability. Read reviews, visit other communities they’ve developed, and check complaint records with local consumer protection agencies before you commit.
Hire an Independent Inspector
For your closing walkthrough, bring your own home inspector to the site. Make sure it’s an inspector who is not affiliated with the builder.
Review Your Contracts in Detail
There’s a lot of paperwork involved in any home purchase, but with new home construction, you need to be extra careful. Have a real estate lawyer review the contract before you sign and ask them to point out any irregularities and things you need to watch for.
Budget for Premiums
You’re going to want some of those custom finishes and upgraded conveniences, so set a limit on how much you’re going to spend. It can be easy when you’re already putting out a lot of cash to put out even more; establish a maximum figure and stick to it.
Visit the Site During Construction
Put on some steel-toed boots and go to the site once a week or so. This will help you catch issues early when they’re easy to fix and not hidden behind drywall. Be friendly and accommodating to the people working on your home, but vigilant about asking questions and getting answers.
The Pros and Cons of New Home Construction
Once you know what to watch for when it comes to new construction home pros and cons, you’re in a good position to make a decision. New construction offers warranty protection, modern efficiency, and low maintenance, with less negotiating power, a premium price, and a neighborhood that’s still developing. Existing homes offer better value, established settings, and negotiating flexibility, but may require more immediate maintenance and updates. With a clear understanding of both options, you’ll be able to make a choice that meets your needs and preferences and those of your family.
