Does My Dream Home Already Exist?
As homebuyers begin to research the market, they initially weigh their options. “Do I want a new home, or something more quaint with character?” or “Will a new construction home really be the house of my dreams?”
This is where things get interesting. A recent survey by Zillow shows that 38% of total buyers added new construction to their list of desires when searching for a home, but only 11% ultimately purchased a newly constructed home. Zillow went on to say that 71% of these buyers are repeat buyers who are financially secure.
Reasons Why Buyers Are Interested
In Purchasing A New Build 👷🏼
Close To Family
Best Value For The Money
Appealing Home Features
So, why did the majority of buyers choose not to purchase a newly built home?
1) Lack of Inventory
Some markets around the country have an abundance of new home communities and builders willing to build new homes within those communities on the speculation they'll sell (aka 'spec homes'). Our area is unfortunately not one of those areas and finding suitable land with access to the infrastructure of utilities (sewer & water) for the density to make development and building more affordable has kept many developers and builders at bay. There simply aren't enough new construction homes available to be a viable choice in the Foothills of Western NC at the moment.
2) Timing Really Is Everything
Buyers face the end of a lease or sale of their previous property and don't have the time to wait for a house to be built. According to Realtor.com, it can take anywhere from 3-6 months to build a home. This puts pressure on buyers as the end of a lease or sale of their previous property is imminent.
Can you really afford the final price? Some buyers felt that new construction pricing is misleading. The biggest mistake homeowners forget to take into account are the added upgrades, variances in grading and site preparation, as well as the ever changing prices in the materials and labor markets.
Did you envision your dream home or the neighborhood you'll live in as "cookie cutter"? For some buyers, new construction homes & neighborhoods have become way too generic. Others feel that the charm and uniqueness of an existing house surpasses those that have never been lived in. This rings true in our area even more so because people are more apt to spend money remodeling an older home, adding further to it's overall charm and character versus looking for a new construction home in an area or neighborhood that may not be established yet.
There are two primary advantages to buying an existing home: available inventory and cost. Not all buyers are able to find that newly built dream home within their budget, and chances are it already exists or a close alternative does in an existing home. There are many buyers looking for “the charm and uniqueness” of an existing home that they can move in now and then spend a little time & money making upgrades and/or changes so that it ultimately fits their 'dream'.