There are HUGE benefits when buying new construction. Here are a few!
Published | Written by Brandon Holley
Disclosure: Transcribed from video. The wording may be off.
If you are in the market to purchase a home and new construction is not on your radar, it should be, and here's why!
What is going on? My name is Brandon Holley, and I am the broker at Holley Homes Realty and your new construction expert. I enjoyed a few weeks off as my wife, and I welcomed our firstborn into this world on 8/31. So now, after very little sleep and lots of diaper changes, I am ready to jump back into making videos. So today, let's discuss how new construction can benefit you if you are in the market to buy a home.
Three exciting benefits of new construction are builder incentives, home warranties, and amenities.
But first, check out how many communities are under construction around central Texas. If this is your first time viewing the channel, check out my other videos, where I visit these communities and give tours of the model homes, amenity centers, and additional information about the area. And if you have not already, hit like and subscribe for future content on how new construction is right for you!
One of the biggest benefits of new construction is the incentives the builder offers. These incentives can vary from month to month, but I am seeing 3-4% percent of the purchase price towards closing costs or rate buy down. So what exactly does this mean?
Closing costs are different than the down payment. The down payment is a percentage you, as the buyer, must pay at closing. This percentage is decided by what type of loan you qualify for and could be 0 down, which is why you should not wait to get in touch with a realtor! Because if you are eligible for down payment assistance and the builder pays your closing costs, you could get into a home for very little money.
What is rate buy-down? You will get quoted an interest rate when qualifying for a loan. This interest rate is one component of your monthly mortgage. If you have followed along with the fed, you know interest rates have increased significantly. If you want to learn more about interest rates, you can check out my video, 'Rising Interest Rates and New Builds,' and I will drop a link below. The interest rate increase has priced many buyers out of the market.
If you use the incentive to buy down the rate, it could potentially save you $100's on your monthly mortgage. However, please keep in mind rates are constantly fluctuating, and you also can refinance in a year. If you have questions, please get in touch with me (put my email address.)
Another benefit of new construction is the builder's warranties. One worry for many of my clients is that they buy their dream home (a resale), and shortly after closing, something big fails. The HVAC system, a leaky roof, a busted water heater, or all three. This could be a problem with the resale, but with new construction, you have a 1, 2, and 10-year warranty.
1-year - Craftmanship
2-year - Plumbing and Electric
10-year - Roof and Foundation
If something fails and it is not on you, it will be covered.
The final benefit I will mention about new construction is the amenities the community provides for the residents. How great would it be if you did not have to leave your neighborhood for the gym, pool, trails, or dog park? The communities that I have been visiting all offer great perks. Honestly, when you get done with this video, go check out my video on Sunfield. One of the coolest amenity centers I have ever seen. It feels like a resort! These builders have incorporated hiking trails, fishing ponds, and playgrounds into each community, allowing residents to enjoy all sorts of activities without fighting traffic.
These are just a few reasons you should check out new construction if you are in the market to purchase a home. Buying a home is a huge decision and should not be taken lightly. However, if you are renting or looking for more space, now may be the time to take that next step. I suggest getting in touch with a realtor and discussing your options. It is never too early, and if you think purchasing a home is in your future, I would love to answer your questions.
Those are a few reasons new construction is great for many of my clients, but let's face it, not everything is perfect, so what are the negatives?
Location. Many of these communities are being built on land on the edges of town.
HOA. Every new community I have come across has an HOA associated with the neighborhood.
Construction debris/noise. The community is in the process of being completed, so you will have to deal with construction.
Honestly, I have been in real estate for 7 years and have sold a lot of new construction. And, I promise, every single one of my clients is still extremely happy. I can not express enough how important it is to start the process if you believe buying a home is in your future. And if it is in your future, please do yourself a favor and look at new construction!
Thank you for watching my video. If you have not already, hit like and subscribe to my channel. Also, take a look at these great communities!
*Disclaimer - All neighborhoods are different. Please speak to an agent to get all the facts straight. Also, equity is not guaranteed and fluctuates with the real estate market.
If you have questions about new construction, please reach out to me. The builder pays the commission, and it is my job to be knowledgeable about these communities.
Broker - Holley Homes Realty
Phone - 512.487.9242
Email - email@example.com
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