First time home buyers are making a comeback! 

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In June 2023, a National Association of Realtors survey showed 47.8% of home buyers in Washington DC, Maryland and Northern Virginia were first time home buyers. That compares to 26% in 2022. 

While this is welcome news, buyers still face limited housing inventory and multiple offers on a single home. Are there advantages in this market for buying a new construction home?

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Does buying a new construction home make sense for you?

Advantages of New Construction Homes

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Customization: One of the most significant advantages of new construction is the ability to customize the home according to the buyer's preferences. Buyers often have the opportunity to choose design elements, finishes, and upgrades that suit their tastes and needs. This level of personalization is typically not possible with existing homes.

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Energy Efficiency: New construction homes are built with the latest energy-efficient materials, appliances, and technologies. They often feature better insulation, modern windows, and energy-efficient HVAC systems. As a result, new homes are more energy-efficient, which can lead to lower utility bills and reduced environmental impact.

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Modern Amenities: New construction homes are designed to meet the demands of contemporary living. They often include modern amenities and features that may not be found in older homes, such as open floor plans, walk-in closets, updated kitchens, and advanced security systems.

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Low Maintenance: New homes are less likely to require immediate repairs or major maintenance since all components are brand new and under warranty. This can save home buyers money and time in the initial years of homeownership.

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Safety and Building Codes: New construction homes are built to comply with the latest building codes and safety regulations. This ensures that the property meets current standards for structural integrity, fire safety, and other essential aspects of construction. Keep in mind that building codes vary from county to county and state to state. In addition, code changes are frequently made to address emerging issues. In short, what is code today may not be code tomorrow.

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Warranty Coverage: Most builders offer warranties for newly constructed homes. These warranties typically cover structural issues and major systems, providing home buyers with added protection and peace of mind in case any issues arise within a specific timeframe.There will be warranties on appliances in a newly constructed home.

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Financing Incentives: In some cases, builders may offer financing incentives or special promotions to attract buyers, such as lower down payment requirements or assistance with closing costs.

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Opportunity for Growth: Buying a new construction home in a developing area may offer the potential for the newest amenities and infrastructure. This directly impacts the value of the home. 

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Reduced Competition: Depending on the market, new construction homes may have less competition compared to existing homes, which can make the buying process less stressful for the home buyer.

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Modern Building Standards: New construction homes incorporate the latest advancements in construction materials and techniques, leading to a more durable and long-lasting property. 

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Consider the Location: Evaluate the location of the new construction in terms of proximity to schools, workplaces, amenities, and transportation options.

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Pre-Approval: Get pre-approved for a mortgage to know your budget and make the buying process smoother.

Budget for Upgrades: While new construction offers modern features, some buyers may want additional upgrades that may impact the overall cost. In general, the home listed in the Multiple Listing Service will have the new construction baseline price with photos showing the high end features. You’ll need to visit the builder with your buyer's agent to determine what features are standard and what not. 

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Understand the Timeline: New construction can take several months to complete and delays are common due to supply chain issues and weather delays. Buyers need to be prepared for potential delays and have a plan in case their current living situation changes.

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Despite these advantages, it's essential for home buyers to conduct due diligence when buying a new construction home. Working with an exclusive buyer’s agent and the builder, home buyers can ensure the proper building and construction inspections are completed on the home. Before and during the due diligence period, home buyers will want to research the builder's track record, and understand the delivery timeline for the house and the new housing development. 

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Note:  All over Washington DC, Maryland and Northern Virginia, builders are purchasing lots and building custom homes. If you decide to purchase this type of new construction, you may be able to customize the home. You will also need to do your research on the buil​​der's track record and reputation. We recommend having a pre-drywall home inspection. During this period, buyers have the opportunity to see the wiring, plumbing and other systems of the home before the drywall is installed. This can be helpful in identifying any issues. It’s also good to know what’s behind a wall before you drive a nail into it.

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How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.