If you live in an area where real estate is still super competitive, you may wonder if you’ll even buy a home. Millennials find themselves in this situation often because they can’t compete with older and more experienced buyers.
While it’s true it’s still a seller’s market as inventory remains low, there is an alternative – new construction.
It’s a Seller’s Market and it’s Competitive
The existing real estate market doesn’t have nearly enough homes for sale as the industry needs. It can’t keep up with the demand which leaves thousands of buyers without a home to buy.
Those who can afford the inflated prices, paying the difference between the appraised value and sales price, or who have large down payments are a step ahead of the game. But where does that leave everyone else?
It’s time to think about new construction.
New Construction isn’t Competitive
New construction is ramping up as material prices come down and more labor becomes available. This means the inventory of new construction in hot areas will be much more accessible than existing real estate.
New construction often has the stigma that it’s hard to afford or impossible to get, but neither is true. In today’s real estate industry, new construction is a smart way to go.
The Benefits of Buying New Construction
If you’ve never considered buying new construction, here are some great reasons to consider it:
- Everything is brand new
You don’t have to worry about home inspections or finding out after the fact that you bought a money pit that needs excessive repairs. While no home is perfect, you probably won’t have to put much money into the home.
- It’s built how you want it
Even if you buy a ‘cookie-cutter home’ you still get a say in what features, upgrades, colors, and designs you want in the home. This means the home meets your expectations before you call it yours.
- There’s no competition
You can’t get outbid when buying a new construction home. Even if there are hundreds of others looking at the homes, if it’s a big subdivision the builder created, there’s room for everyone. You may have to be one of the first to put a deposit down if there’s a highly sought after lot, but you don’t have to worry about paying inflated prices for a home because of a bidding war.
- You may save money with energy-efficient features
Older homes are usually the opposite of energy efficient. Building a new home often means you’ll have the latest technology which will save the environment and keep your bills lower from day one.
Final Thoughts
If you can’t find a home today because of the inflated prices and crazy bidding wars, consider new construction. There’s much less stress involved in the process, and you get what you want from the start!
You can work closely with the builder to build a home that’s within your budget and has the features you want without the hassle of trying to outbid anyone else.