Buying New Construction: Go For It Now or Wait Until It’s Built?
When it comes to purchasing a new construction home, one of the first decisions you’ll face is whether to buy during the construction phase or wait until the home is complete. Each approach has its advantages and potential drawbacks, and the best choice depends on your priorities, timeline, and financial situation. Let’s dive into the factors that can help you make an informed decision.
Advantages of Buying During Construction
1. Customization Options One of the most significant benefits of buying a home while it’s being built is the opportunity to customize it to your preferences. Many home builders allow buyers to select finishes, fixtures, paint colors, and even floor plans during the early stages of construction. This level of personalization can make your home feel uniquely yours and reduce the need for renovations later.
2. Potential Cost Savings Builders often offer lower prices or incentives for buyers who commit early in the construction process. These incentives might include upgrades, closing cost assistance, or discounts on the base price of the home. Buying early can also help you lock in the price, which may protect you from market fluctuations.
3. Early Access to Desirable Lots In many new developments, the most desirable lots are sold first. By purchasing during construction, you’ll have a better chance of securing a prime location, such as a lot with a larger yard, better views, or proximity to community amenities.
4. Time to Plan Your Move If you’re not in a rush to move, buying during construction gives you several months to prepare. This timeline can be particularly helpful if you’re selling your current home or relocating from another area.
Disadvantages of Buying During Construction
1. Uncertainty Buying a home that hasn’t been completed involves a degree of uncertainty. Construction delays due to weather, labor shortages, or supply chain issues can push back your move-in date. Additionally, the finished product may not perfectly match the model or renderings you saw when you made your decision.
2. Limited Ability to Walk Through When buying during construction, you’re often relying on floor plans, virtual tours, or model homes to visualize your new home. This can make it challenging to get a true sense of the space, layout, and finishes until it’s complete.
3. Risk of Market Changes If the housing market shifts during the construction period, you might find yourself paying more than the home’s current market value by the time it’s finished. Conversely, interest rates may rise, which could increase your monthly mortgage payment.
Advantages of Waiting Until Completion
1. See What You’re Buying Waiting until the home is complete allows you to walk through the actual property and see exactly what you’re purchasing. You can inspect the quality of the workmanship, check for potential issues, and ensure the home meets your expectations.
2. Immediate Move-In If you’re in a hurry to move, buying a completed home is the fastest option. There’s no waiting for construction to finish, and you can move in as soon as the closing process is complete.
3. Less Risk of Delays By purchasing a finished home, you avoid the potential for construction delays and the associated frustration. You’ll also have a clearer understanding of the timeline for your move.
4. Potential for Negotiation If a builder is eager to sell completed homes, you might have more room to negotiate on price or request additional incentives. Builders are often motivated to close sales quickly to move on to the next phase of their projects.
Disadvantages of Waiting Until Completion
1. Limited Customization Once a home is finished, you’re typically buying it as-is. This means you’ll have little to no say in the finishes, fixtures, or layout. If the home doesn’t align perfectly with your preferences, you may need to budget for changes or upgrades after you move in.
2. Higher Competition Completed homes may attract more buyers, especially in a competitive market. This could lead to bidding wars, higher prices, or the need to act quickly to secure the property.
3. Missed Incentives Builders often focus their incentives on pre-construction sales to generate early momentum. By waiting until the home is complete, you may miss out on financial perks or discounts.
Key Questions to Consider with Your Real Estate Agent
To decide whether to buy during construction or wait until completion, discuss these questions with your real estate agent:
- What’s my timeline? If you need to move quickly, a completed home is the better choice. If you have flexibility, buying during construction could work well.
- How important is customization? If you want a say in the design and finishes, buying early is the way to go.
- Am I comfortable with uncertainty? If delays or market fluctuations would cause significant stress, waiting for a finished home might be more suitable.
- What’s my budget? Consider whether early-buyer incentives or the ability to negotiate on a completed home align better with your financial goals.
Both buying a new construction home during the build process and waiting until it’s complete have their merits. The right choice depends on your priorities and circumstances. By weighing the pros and cons of each approach and considering your personal needs, you can make a decision that ensures your new home is everything you hoped for.
