In the process of buying a home, you will come across houses of all ages. Many people gravitate toward houses that have already been lived in because they can be cheaper than new construction. However, new construction homes come with a host of advantages, such as a home warranty, brand-new implements, and simply the newness that comes along with a new structure. Take a look at some of the common questions about new construction homes that prospective buyers usually have about these properties.
Do new construction homes depreciate or appreciate in value?
Most new construction home values will drop slightly after purchase. The simple explanation for this is because of the fact that a brand-new, never lived in home is naturally more valuable. buying a new construction home is a bit the same as buying a new car in that respect. However, real estate values do tend to rise over the years, so even if there is a slight depreciation in the first year or two after purchase, it is common for the home value to start to appreciate beyond that. Therefore, new construction homes do serve you better as a long-term investment.
Are prices on new construction houses negotiable?
It is actually a misconception that there is no negotiation on a new construction home for sale. Some builders do ask firm prices, but some do allow for some price negotiations. There are other ways to negotiate beyond just the price you are willing to give to buy the property as well. For example, you may be able to negotiate that you will give the asking price if the home can be built with certain elements. For example, you may tell the builder that you want a bathroom with a large soaking tub for the price they are asking for the property.
Do new construction homes have to be inspected?
Many builders will take the initiative to have the home professionally inspected once it is completed so buyers don't have to do so for their lenders or simply because many buyers prefer a home that comes along with a professional inspection. However, the home may still have to be inspected if the lender chooses that they prefer it to be. Even if you are buying a new construction home straight-out without financing, it is best to have it inspected if it has not already been done by the building company.