As home-buyers begin to research the market, they initially weigh their options. “Do I want a new home, or something more quaint with character?” or “Will a new construction home really be the house of my dreams?”
This is where things get interesting. A recent survey by Zillow shows that 38% of total buyers added new construction to their list of desires when searching for a home, but only 11% ultimately purchased a newly constructed home. Zillow went on to say that 71% of these buyers are repeat buyers who are financially secure.
Reasons Why Buyers Are Interested In Purchasing A New Build
So, why did the majority of buyers choose not to purchase a newly built home?
1) The Right Location
Location, Location, Location! It’s the most important factor when buying real estate. Location creates desirability, desirability creates demand, and demand raises real estate prices. Buyers want a sense of community, which is something that has yet to be established when constructing a new home (e.g., landscaping, neighbors, etc).
2) Timing Really Is Everything
Buyers face the end of a lease or sale of their previous property and don’t have the time to wait for a house to be built. According to Realtor.com, it can take anywhere from 3-6 months to build a home. This puts pressure on buyers as the end of a lease or sale of their previous property is imminent.
Can you really afford the final price? Some buyers felt that new construction pricing is misleading. The biggest mistake homeowners forget to take into account are the added upgrades and high HOA fees.
Did you envision your dream home as a “cookie cutter”? For some buyers, new construction homes have become way too generic. Others feel that the charm and uniqueness of an existing house surpasses those that have never been lived in.
There are two primary advantages to buying an existing home: convenience and cost. Not all buyers are looking for that newly built dream home and chances are it already exists. There are many buyers looking for “the charm and uniqueness” of an existing home.