Builders proclaim the benefits of new construction
Buyers' dilemma: Should you buy a charming older house or a sparkling new home?
You've admired that older stucco home close to town with the quaint front porch and beautiful gardens. The location is perfect - near restaurants, shopping and the train. On the other hand, you've always dreamed of moving into a new construction home with a bright, open floor plan and all the latest amenities.
Speaking from experience, Christy Whelan votes for new. "We built three homes with Airhart Construction, and we're absolutely sold on new," said Whelan, director of sales for the builder. "For our first home, we were young without a stick of furniture, but we had everything we wanted in our new home - all our colors, cabinets and appliances that were fresh and new and never used."
When people buy an existing home, they often settle for something that isn't what they really want. Then they decide to renovate, and those costs add up quickly. Before they know it, they're spending more than they would have on a new home, said Randy Stevenson, president and owner of Embassy Construction.
One of Stevenson's customers looked at purchasing a new home, but he decided to buy an existing home and finish the basement. He spent so much for the basement that altogether he ended up spending more than the cost of the new home he wanted.
"With a new home, buyers get exactly what they want - the home of their dreams - a home that perfectly fits their lifestyle and budget," Stevenson said. "In our experience, the time spent building a new home outweighs the often quicker purchase of an existing home."
Open design, current amenities
Buyers want a home with an open design, which has been a trend since 2004. They're entertaining more, and everyone gravitates to the kitchen and family room, which has become one big room, Stevenson said.
Whelan agrees. Today's buyers want what's in style, current colors, fresh and new, not something outdated. They like to start out with a clean slate. When you close on a new home, you get the key, the house is done and it's beautiful, Whelan said. "Young couples don't want someone else's house.
"We have a new design center where buyers can select their products and finishes with the expertise of professional designers."
With new construction, you're building from scratch, selecting the floor plan, exterior look, siding, brick and interior products and finishes, said Andy Konovodoff, president of K. Hovnanian Homes. "It's yours. You have ownership in putting it together."
Energy efficiency
With state-of-the-art technology, a new home is far more energy efficient than homes built just five years ago, which will result in saving energy and money for heating and cooling. Also, the construction industry has energy standards and codes that weren't in place in the past.
"With the blown cellulose insulation we use, a new house won't have cold rooms and drafty spaces. We go through the home with an energy seal system with infrared light to detect any place where air can infiltrate into the home," Whelan said.
A new home is cleaner and less dusty. If a buyer has a baby, or if someone has allergies, the carpeting or wood flooring is new, and the home has a good air quality.
Better products
Materials used in new construction are a lot better today. Siding is stronger, and there are more color selections. Flooring is better and stronger and doesn't flex as much as it may have before. And roofing lasts longer because of better quality materials, Konovodoff said.
"With an existing home, all the components have aged, even if it's not that old. That's the bonus for a new vs. used home. The sticks and bricks are so much better."
Whelan echoes Konovodoff. The products builders use today are so much better, such as roof, windows and landscaping materials, she said. In an older home, it may be nice, but probably not reflective of the buyer and not professionally designed.
"With a new home, it's fun to have a new garden and have input about what you want. We show you a plan. Maybe your grandma had a tree that you loved and you want that tree in your yard. You can substitute that and have what you want and take out what you don't want from the plan," Whelan said.
Existing home problems
A new home is more cost-efficient to operate and maintain because of fewer problems and repairs. When you come home from work, you don't want to deal with a leak or any of the many things that can go wrong with an older home. Even if you do something as simple as tear out carpet, you will have to deal with dust and dander.
In an older house, there may be hidden defects that even an inspector might not find, Whelan said.
When rehabbing an existing home, you spend a lot of money and go through a lot of dust and stress. While an existing house may have a new kitchen, it remains an older house with a possibly older roof, windows and foundation, and it's still not energy efficient.
When renovating an existing home, it must meet all the new electrical and energy codes and it will start to cost more than a new home.
Bottom line
If buyers have the time to invest in building a new home, then that is their best choice. If their ideal home is not as important as their time, an existing home may be right for them. Years ago, there were a lot of spec homes out there, but most buyers don't build on spec anymore. It's a little riskier for the banks that finance builders, Stevenson said.
"Today, there is more value for your dollar when purchasing a new home. I think you can get a lot of house for the money," Konovodoff said. "Prices of homes are rising, but not as fast as in the past, and mortgage rates are low, although they will go up eventually. It's a great buying opportunity today."