New construction isn’t always perfect: 3 pros and cons

CHICAGO – May 30, 2018 – Many house hunters mistakenly think that new construction is flawless – a perception that can make it difficult for sellers surrounded by brand-new housing developments.

In reality, a newly built home often has just as many inspection issues as a resale property.

If working with clients who are interested in purchasing a new home, it’s important to manage their expectations. Let them know that no home – no matter what age – is perfect.

On the other hand, new homes do have some advantages because they’re not worn. Here are three pros and three cons of new construction:

Pros

1. Less wear and tear. New construction buyers can expect fewer imperfections in the product, says Terrylynn Fisher, a professional stager and associate broker with Dudum Real Estate Group in Walnut Creek, Calif. Scratched floors and cracks in walls, for example, are more common in resale homes than new ones. Finishes and design flourishes may also be brighter and more colorful because they’re untouched.
2. Built-in technology. While many homeowners have been slow to adopt smart-home technology, developers are jumping on the bandwagon quickly and incorporating smart features into their projects, says Sce Pike, founder and CEO of Portland, Ore.-based software company IOTAS. Smart door locks and thermostats are among the most popular products developers request, but some are eyeing more comprehensive packages that include smart humidity sensors and the ability to control access to a home remotely.
3. It’s a blank canvas. Buyers may feel like they have more control over their personal home design, which can be a big psychological motivator in a purchase decision, Fisher says. While resale buyers can make a home their own, they may not feel complete ownership of its style because they’re either adding to, morphing or covering up the previous owner’s sense of style, says Christine Rae, founder of the Certified Staging Professionals International Business Training Academy.

Cons

1. Building shortcut flaws. Builders may take shortcuts in the construction process to cut costs, and that can result in blemishes. Fisher says one of her buyers recently bought a new home and discovered about six aesthetic problems, including an unsightly gap at the top of a shower that showed the framing behind the wall. “It was like a bad flip that appeared beautiful on the outside,” she says. “You’re going to have a more substantial house in an older home because it’s had owners that have cared for it.”
2. Style over functionality. Builders are hyper-focused on open floor plans, a top priority for today’s buyers. But that often requires sacrificing storage space, Rae says. To achieve a truly open space, builders often have to decrease the size of closets and other areas of the home designed for storage.
3. Incomplete curb appeal. Many builders put all of their effort – and investment – into the front of the house so it looks good to potential buyers driving by, but they’ll sometimes ignore the backyard, Fisher says. Many new-home buyers may have to assume all the costs of backyard landscaping, including planting grass or laying sod, as well as planting trees and other shrubbery. This can be a huge expense, too.

Source: Graham Wood, Realtor® Magazine

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