NEVER Buy a New Construction Home

New Construction is not what it’s cracked up to be. I know many would like a brand new home without any issues or headaches. But I can tell you there will be headaches. So in this video I’m going to tell you why should never buy a new construction home.

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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River

#realestate #jackiebakerrealtor #jackiebakersellsnj #homebuyingtips #homesellingtips #realestateinvesting

[JacobPaul-np]

If anything, it's likely to get worse. Affordable housing will soon become unaffordable. Therefore, I advise taking action now because today's prices will seem like bargains tomorrow. Until the Fed takes more decisive action, I expect we will see hysteria due to rampant inflation. You can't just halfway rip the band-aid off.

[SeanTalkoff]

It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.

[droldsw]

I've lived in Naples Fl. 37 years installing custom stone tile in multimillion dollar homes. The superintendent asks when I will be done, I say, when it's done right. he asks when will it be done right? I say when I'm done.

[markbone]

I'm a plumbing contractor. I see quality issues in nearly all new construction homes, even the high-end "custom builds". The thing is, quality is down almost everywhere. From construction, to healthcare, to insurance, to food, to education, quality is down everywhere. It's a moral and dignity problem. People have to get right with God.

[ClayneBanks]

And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.

[Fedgery]

Homes aren’t built using skilled labor. They built using unskilled day laborers.

[DonaldMark-nese]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[edflaherty]

The "base price " of a new home is like buying the cheapest model of a car. Here is what a friend of mine encountered. 1. There was a lighting package price allowed in the base model for $500.00. You go pick out the lights and anything above that is an add on.2. You were allowed 3 cable hook up boxes. More than that is $250.00 each. 3. One receptacle was included in the garage . Extras were $250.00 each . 4. The doors and windows were cheap " builders grade. 5. The furnace and AC were cheap builders grade. 6. The roof shingles were 20 year grade, not 30 years. 6.The driveway was one layer os asphalt, not a base layer and a top layer. 7.The appliance package in the base price price was $2, 500.00 . You go pick out what you want and you pay more fro anything above $2, 500.00. 8. The base price included one front and rear porch light. To add more was $250.00 each . 9. The switches and receptacles were the cheap 99 cent variety, not the good ones at $4.00 each . !). 10. The bathtubs had fiberglass walls, not tile . 11. The floors were cheap tile, cheap carpet or the cheap composit type. 12. The plumbing fixtures we builders grade . Everything look new and shiny, but it was a piece of junk.

[timothyadams]

Unfortunately there is a lot of unskilled labor building these houses

[LucasBenjamin-hvsk]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[Barbarra]

Shoddy new construction is nothing new. A friend of mine was having a house built in the mid 80's. He went to the site every day and found horrible workmanship and he was like a bulldog and wouldn't leave those guys alone until it was done right. Even to the point of the having to remove the entire roof, rafters, shingling, everything and redoing it because the peak of the roof was all screwed up to where there was an 8 inch gap at the peak and the workers just shot hundreds of nails in it (most of which didn't even work). Unless you have the time and tenacity to inspect the building of a new home every day sometimes twice a day, I'd steer clear of new construction.

[angiespradlin]

I love my 1955 home...the wood is thick and redwood...been through several hurricanes and tornadoes and still standing strong! We re-moddles in 2018 so it is basically a "new" home!

[danparish]

Look at all those 3 to 4k sq ft homes sandwiched together. I’d rather have a home half that size that has an actual yard and space.

[scoots]

Advice giver: Never buy a new construction house!

Me:okay

Advice giver: never buy an house from before the year 2000

Me:okay

Advice giver: never buy a manufactured home.

Me:okay

Advice giver: and never buy a condo.

Me: so what should i buy?

Advice giver: nothing

[petercollingwood]

As an immigrant to this country in 2000, who finally bought a house in 2008 I was STUNNED by how crap the quality of home construction is in the USA. Most Americans never set foot outside the country and have no idea just how bad it is. Of course there are other countries with garbage construction as well but thats not the point. The USA is not supposed to be a poverty stricken third world country. The bigest scam in the entire industry is the "short term roof rental" scam. The idea that you have to "re-roof" your home every few decades (40K dollars where I live) is still not something I can wrap my head around. The house I grew up in was built in about the 1910-s to 1920-s. I used to get up on the roof all the time when I was about 8 to 12 years old. You can still see the house on Google Earth with the same orange clay roof tiles they put on it when it was built. That's over 100 years later! I know they're the same ones because they haven't made those tiles in that color since I was a kid so there is no way they aren't original. Thats over a CENTURY that that house (and the others in the neighborhood) have had their roofs untouched. Yet here American's apparently think its perfectly normal and understandable for roofs to require replacing every 20 to 30 years, Absolutely NUTS.

[SoulfulVeg]

As much as everyone dunks on Boomers and GenX, when they retired, the quality went down. My dad was a carpenter, and a knowledgeable perfectionist. Not sure if they make them like that anymore.

[dionisioramirez]

Problem is there is shortage of good tradesmen who probably worked for a builder and they probably got laid off one too many times, so they either started their own company, or got a different career.

A lot of these new homes are pre fabricated and are shipped to new subdivisions that are being built.

The material is another thing because wood is not as strong as it used to be. If you get a chance to look at new construction homes you can see the type of wood they are dealing with.

You are better off buying an older home that you can remodel yourself, or if you have friends and family in the trades that’s even better.

Learn some trades skills. This will help you in the long run.

[lisalaufenberg]

I love my solid 1930’s home, built by a successful pharmacist in my small town. I know it was well built back in the day, including all the wonderful moldings and built ins. It has been well loved through the years.

[robertcorrigan]

I am a builder, 40 plus years, owned my company, worked for national builder, and best custom builder with every award on planet. Sorry but a very broad brush you are painting with. My homes both with national builder and custom and what I presently build meet the highest standard, and if you what to see if a builder can deliver consistent quality, it is simple, ask how long his subcontractors have been with hi. Mine are the same year in and year out, so the quality is there and consistent. National builder rebuild a new team when the price of labor goes up 10 cents, so you get what you pay for. When I built in New York, the man that put in my first foundation put in my last 20 years later, same with flooring, drywall, HVAC, build good relationships and build good homes!

[briancarlisi]

If you can’t afford to pay a good inspector $300-$500, then you can’t afford the home. Go back and get your “financial house” in order first before considering spending on the biggest “investment” in your life. Good video, JB!