New Build Perks

The news lately has been abuzz with high home prices and equally high mortgage rates. These numbers have boxed a lot of buyers out of the market or, at the very least, significantly changed the ways they’re home shopping. Some buyers have found the seemingly unseen perks of buying new construction and how it might actually cost less than pre-existing homes. How?!

In places where rents outpace mortgages or in instances where down payment requirements are overwhelming, some experts (like the ones at Realtor.com!) are suggesting turning to new construction companies. During the housing demand of the Covid bubble, builders got to work trying to meet that demand. Then… mortgage rates more than doubled leaving the pool of potential buyers much smaller. 

This left builders ready to wheel and deal. Realtor featured a Michigan-based couple who were surprised to find that new construction ended up saving them money from buying a pre-existing home. The home fit their budget, though it came with some quirks. It was move-in ready but didn’t necessarily come with the customized options of choosing new-construction before it’s actually built. They also had to buy their own appliances, though the builder offered an appliance credit. To sweeten the pot, they offered a lower-than-average interest rate through the builder’s lender of 5.5% and no closing costs.

Builders Can Do That?!

This savings on the mortgage rate equaled a savings of hundreds per month. 

Cash-strapped buyers in today’s market may see new construction and assume it’s automatically out of their budget, but that’s not always the case. Builder incentives like closing cost assistance, amenity upgrades, or betting the current interest rates are all cash saving options that most people don’t realize are possible. 

If house hunting is your current biggest frustration, talk to an agent about what it might look like to buy new construction!