Should you consider NEW CONSTRUCTION? Pros and Cons of Buying New Construction

Are you a first time home buyer considering new construction homes and wondering the difference between new construction vs resale? Should you consider NEW CONSTRUCTION? What are the pros and cons of buying new construction in this housing market?

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How do you think new construction is going to affect the housing market? What are you thoughts on the benefits of new construction? Can home builders build fast enough to help slow the housing market? Let me know in the comments below.

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Jeb Smith (huntington beach Realtor/orange county real estate)
DRE 01407449
Coldwell Banker Realty

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[tinabdawg]

Great video! As someone who’s bought two new construction homes, I’m glad you mentioned all the extras costs people don’t think about. I would set aside money for shelving for closets, fences, appliances, window treatments, landscaping etc. Some companies will give you some of those things and some don’t. All those costs can easily set you back tens of thousands of dollars. Also, HOA fees can be high in a new construction community.

[Bubbandadda]

We choose new build because we were bidding on 280k-300k homes and was getting outbidded 20-30k over. A new builder here had Spec homes for 320k, we went into the office and put 10k deposit down. Our home will be done in august.

So instead of getting a used home for 315kish we get a brand new efficient home for 320k, and egress windows in the basement so we can expand more sq ft in the basement in the future.

[realTLC]

Just bought a new construction called "Mira Vista" on the Bay Park/Clairemont border. I'm learning a lot but sure wish I had watched your video sooner!

[Sanai]

You are speaking ALL FACTS in this video. Thank you.

[iandimas]

There are pros and cons to both and you look at everything from size to location and other things. My driving force to buy new construction was the way this market is. My price was locked in from the start. With all these investors, greedy sellers, and getting outbid by 30k, I decided to go new construction and cancel all the nonsense out. Much easier process

[sharonwaranius]

Thanks, Jeb, as always! I wholeheartedly agree every time you recommend buyers, and sellers, to work with real estate agents. From my experience, I'd add... highly qualified and experienced agents! And never a 'friend' agent! I learned that the hard way! What a nightmare that was; selling while out of state, using an agent who was a friend. Never again!

[Skeer]

I just bought a new construction home. We were able to get the builder to throw in blinds, an AC unit, a fence and a garage door opener. We also got a 5.75% rate for using the builders preferred lender. What's great is that I'm spending the same amount of money on a new house with new everything vs spending the same amount of money and having to dump a ton of money on upgrades.

[notinusemedia]

very informative - Thank you for putting efforts for the community and buyers

[HoloHoloAdventures]

That is crazy to hear about no set base prices. Ugh 😩 this sucks when it comes to buying houses.

[tfsjuhi]

Thanks for the video! We just signed contract on one of the new construction home(still waiting for conditional loan approval), it was almost at the end process with only 10-11 units left and even though people were bidding but we got "selected" for our home without overpaying at the base price. They have pre-selected lots for floor plans and have already started construction before they release these homes - so I am guessing they have pre-ordered all of the stuff. We got his one for 440k and the current resale market we wouldnt be able to get the same home for even 480k.

[lorenagonzalez]

Buying new all the way! I will not waste my time looking at so many homes and paying the appraisal gap! And going through the bidding wars no thank you!

[heatherpeggau]

This is why buyers need to review the purchase contract VERY carefully! They cannot raise the price unless they leave that option in the contract (usually in the form of an escalation clause). I just signed a contract for a home in Nashville and there are no such clauses so the builder has locked us in to the rate we signed for.

[omowasolaagbemoroti]

This is crazy, the house that l wanted to buy last year summer was 350, 000, Now l paid 450.000 singlehome, , in new jersey, new construction,

[JaNooB]

Love the videos Jeb, what would you consider as essential and nonessential upgrades in a new construction? I don't like the idea of paying for the "standard" only to get a contractor to rip it out. The design center seems extremely marked up, but I may be wrong.

[jtgg]

I was told 6 month build time now their talking 10 months and that’s not even guaranteed 🤦🏻‍♂️

[markocean]

I notice that newer homes are starting to come with smaller lots. I have a 100 year old home that i have updated. When i look at newer homes with similar square footage, they generally have small lots. However, they are asking upwards of over $100k higher. It is strange.

[stevenk]

I considered new construction back in January 2020. After being put on the list and waiting for months, our agent notified us that the builder is holding off on releasing more houses. They were holding out for higher prices. We actually haven’t heard back from them to this day.

[ThisGuyRocksLikeCrazy]

Here in bay area new properties don't have backyards.

[deldeek]

can you sue the builder for breach of contract if they increase the price given both parties the buyer and the builder agreed on a price when the contract is signed ?

[kaomatic]

i’m an electrician, i’m building my own home soon, as in i will physically build it not pay someone to do it
i don’t trust new homes made of cheap garbage materials and i don’t trust older homes that have had some ding dong house flipping handy man come in and “renovate” while cutting corners to maximize profits