With ready-for-occupancy homes on the market becoming more expensive and less in supply, homebuyers are once again faced with constructing new homes or trying their luck in the current real estate market - and an expert has the advice to give.
Tim Bakke, a home building expert and director of publishing at The Plan Collection - an online home design plan pioneer - believes that, like everything, there are pros and cons to starting a new home construction over buying existing ones.
Pros of a New Construction: More Freedom, Less Competition
ALL-NEW EVERYTHING. With constructing a new home, would-be homeowners start with a blank slate - all new everything, no worries about remodeling and updating yet - and it applies to both a spec home or having their ideas brought to life.
Usually, buyers of existing homes find renovation works necessary, with bathrooms and kitchen areas the most commonly renovated parts. However, Bakke puts renovation costs to be anywhere from $5,000 to $25,000, or maybe more. Also, the construction of a new home is accompanied by all-new appliances, fixtures, fittings, and mechanical installations that certify homeowners of at least a ten-year headstart over existing parts.
NO COMPETITIVE BIDDING. By kickstarting the building process, homebuyers no longer need to worry about suitable housing inventory or risks of losing against other buyers in a bidding war. With the freedom and control over its design and specs, it also eliminates the need to tour and check out undesirable homes.
LOCATION, STYLE, ENERGY ADVANTAGES. Starting from scratch, homebuyers enjoy unparalleled freedom with the materials, the design, and even the location of their homes. Additionally, newly-built homes have new fixtures, lights, insulation, and HVAC systems - also compliant with current energy standards for increased safety and efficiency.
Cons: Prices and Patience
COST/ BUDGETING. Of course, with all new parts and often customized designs, home buyers might find themselves paying a little more for a similar-sized plot of land, although it's not always the case. For example, Tim Bakke notes suburbian locations in New York and New Jersey experiencing real estate booms with low inventories because of the pandemic. This leads to high prices and more risks of bidding wars. The publishing director of The Plan Collection reminds potential homeowners not to overextend themselves financially during the construction process.
TIME/ TEAMING-UP WITH CONTRACTORS. Building a new home will obviously take more time than existing homes, most of which are ready for occupancy. Construction of a new home could take anywhere from 6 to 12 months, with important decisions needed every step of the way. Also, building from the ground up is an all-new, unproven project. Buyers must do their due diligence and must make sure that they are working with a trusted builder. Tim Bakke also stresses the need for a "solid contract" vetted by a lawyer.
About Tim Bakke and The Plan Collection
With more than 30 years of publishing experience in books, magazines, and on the Internet, Tim Bakke regularly writes about house plans, home design and construction, remodeling, and helping his readers achieve their dream homes.
He is the Director of Publishing for ThePlanCollection.com, which offers more than 22,000 affordable house plans - trustworthy and dependent, developed by some of the country's most talented architects and designers. These pre-drawn plans are customizable, allowing builders and potential homeowners to achieve their dream homes at a more favorable cost. More information is available at The Plan Collection website.
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