When you and your family have decided to make the jump into the real estate market in order to buy a new home, you have some options to explore from the very beginning – even before you start searching for the house! One of the first choices you will want to make is whether you may be interested in buying a new construction home in South Jersey or just stick with resale homes.
Many home buyers enjoy the fact that buying a new construction home in South Jersey means that it has never been lived in by any other family, so they get to explore the fun, exciting features of the home before anyone else. Although this is an amazing advantage, there are also a few drawbacks that you should be aware of and consider as well.
Our real estate team at Your Home Sold Guaranteed Realty - Nancy Kowalik Group in South Jersey is happy to discuss all of these advantages and drawbacks with you, and that is why we have put together this special post. We want home buyers like you to have all of the information they need to make well-informed decisions throughout the entire home buying process.
Buying a New Construction Home in South Jersey: Benefits and Drawbacks
Let’s start with the many benefits of buying a new construction home in South Jersey before we explore a few of the drawbacks. These are advantages that you will likely be unable to enjoy when buying a resale home, so they should certainly be taken into consideration.
Some of the best benefits include:
- Everything in the home is brand new and ready for use
- All appliances are the latest energy-efficient models so you get to enjoy their full life expectancy
- Your house will have the most modern and current design and style
- You may be able to customize the build (flooring, hardware, fixtures, specific upgrades) if your builder allows you to buy it before it has been completed
- The house will have a warranty so you will not have to worry about making repairs or buying new appliances to replace old, broken-down ones
With all of these great advantages, it is a wonder that anyone buys resale homes anymore! However, there are a few drawbacks to discuss that may make you reconsider the option of buying a resale home.
Here are a few of the most important disadvantages to consider:
- New construction homes are more expensive than resale homes in order to cover materials and labor of the build as well as those shiny, new appliances
- You will have to make a larger down payment and contend with higher property taxes
- If the home is located in a gated community, you may have to pay HOA fees
- Dealing with home builders rather than home sellers can be tough because they are often more concerned with turning a profit that your satisfaction with their work
Given these downsides, you should definitely take the time to enlist the help of a real estate professional such as ours at Your Home Sold Guaranteed Realty - Nancy Kowalik Group to make sure you are getting the best deal, have everything you want and need in the new home, and have a clear understanding of what exactly you are getting for the price you are paying when buying a new construction home in South Jersey.
What Are the Steps of Buying a New Construction Home?
So, now that you know and have considered the pros and cons of buying a new construction home in South Jersey, what are the steps involved in the process? It is actually quite similar to buying a resale home but with a few key differences.
First, you will need to look for new home developments in your area in order to narrow down where you want to live. After all, you can’t build a new home where one is already standing. This may be a challenge, especially if your region is already well-developed, so you may end up going further out of town to find available property.
Next, it is time to dig deeper into the building companies you are considering to make sure the one you choose is the right option for you. Be sure to read customer reviews to determine if the company has a good reputation in the area and has previously delivered the highest quality products that you are looking for.
This may be a bit of a challenge, but working with an experienced realtor can make the process much easier. Because realtors are already familiar with many home builders in the area, working with a real estate professional can help you ensure that you find the best builder in your preferred area.
Once you find the perfect home builder for your needs, you can get started on the construction. Rely on your realtor and builder to guide you through this process and keep you up-to-date on a regular basis.
The Ins and Outs of Financing a New Construction Home in South Jersey
One of the most important aspects of any home purchase (resale or new construction) is the financing. It is imperative that you get all of your financing in order as soon as possible to ensure that the process goes smoothly. It is wise to get pre-approval from a lender before you begin the process.
While some builders do have their own preferred lenders that they are happy to recommend, those lenders are not necessarily focused on giving you the best deal or keeping your best interests in mind. That is where a realtor can play a vital role.
Our team at Your Home Sold Guaranteed Realty - Nancy Kowalik Group can help you determine your options for lenders, including the builder’s preferred one, and figure out which one will give you the best deal. It is important to make sure you are working with a lender who specializes in new construction since the terms of the loan will be slightly different than with resale homes, and they need to have extensive knowledge and experience with those differences.
Figuring out the lender may be one of the most difficult aspects of the process, so once that is complete, you can move on to the next step. You have figured out what your dream home will be so you can now put a deposit down and sign the contract.
Putting a House Under Contract
When you go under contract, you will find out that there is not much room for price negotiation, but you may be able to get a better deal if you are one of the first buyers in a brand new development early in the construction phase. If the builders are trying to generate interest and sell their homes, they may be willing to give you a deal in order to attract more home buyers. This may not always be possible, though, so don’t rely on this as an option.
If you are not an initial home buyer in a new construction project, your realtor may be able to advocate for you when it comes to the cost of upgrades or closing costs. That is why it is essential to have a realtor who is ready and willing to keep your best interest in mind and work on your behalf.
A final consideration to make when buying a new construction home in South Jersey is getting a home inspection. With a professional inspection from a third party, you can rest assured that any mistakes that have been made will be caught early to be fixed and you are getting a high quality product which meets the building expectations of your area.
Our Real Estate Team Can Help You Buy a New Construction Home in South Jersey
If you and your family are ready to buy a new home, you have some important choices to make. You may be considering buying a new construction home in South Jersey, but you should be aware that it is not necessarily any easier or harder than buying a resale home. It is simply different. To make sure you are aware of these differences and can prepare for them, it is important to work with an experienced realtor such as ours at Your Home Sold Guaranteed Realty - Nancy Kowalik Group.
We will ensure that you fully understand the terms of the contract you are signing with the contractor, and our team will always advocate for your best interests with a builder who only cares about their own profit.
Whether you opt for buying a new construction home in South Jersey or a resale home, we will be offering you our Exclusive Home Buyer Protection Plan to make the home buying experience the best it can be. For more information about this protection plan or to start your journey when buying a new construction home in South Jersey, give us a call at (856) 230-7077 or fill out the form on this page with the requested information.
We can’t wait to hear from you and help you begin your home buying experience!