Timing is key when it comes to buying a home in a new community. Most home buyers are often at crossroads when it comes to purchasing pre-constructed homes or already-constructed homes. Experts advise that your homeownership goals should inform the choice you settle on. If you are planning to buy as an investment or for residential purposes, go for pre-constructed home or newly constructed units. Pre-construction homes are not for everyone, and here are some things you need to know about these types of investment.
Minimal Bidding Wars
Within pre-construction homes, developers set the price by considering different aspects such as square footage, lot size, recent sales data, and floor level. If you are planning to buy an already-constructed home, you should be prepared to deal with heated bidding wars. To avoid the emotional turmoil that comes with bidding wars, which are often not subject to passionate demand.
Customization Options
One of the most exciting parts of buying pre-construction homes is that they offer design studio options. Based on the floor size you need, you can always have a say on the interior design. On the other hand, you also have some degree of freedom with regard to conducting structural upgrades. If you have some room in your budget, you might consider adding features that enhance the resale value of your home.
Down Payments
Another attraction towards pre-construction homes is that you do not have to meet the full payment amount. This fact is particularly appealing to potential homeowners with limited resources. Most pre-construction homes usually ask for 20% down payments over an extended period. Even though the payment options are up to the developer, not paying the full amount comes with considerable flexibility.
Possibility of Delays
Delays are quite common when it comes to buying pre-construction homes. It is worth noting that construction dynamics can make some projects delay by one or two years. It is imperative to do your homework since developers aren’t cut from the same cloth to avoid such limitations. Some are known for promptness, while others might have a reputation for delays. Always do your research while buying pre-construction homes.
There are lots of benefits and a couple of downsides to buying pre-construction homes. If you are purchasing a home for the first time, make sure you seek expert opinion from a realtor. But overall, home buying is a fun and rewarding experience, but only if you are willing to put in some effort.
