Are New Construction Homes Worth the Investment?

reasons to invest in new construction properties

Do you want to invest in a new construction home? Many potential homeowners will consider checking out new construction homes for sale with the hopes that the building will be new, updated and free of potential maintenance issues. While it’s true that you might have higher resale value on newer homes, there are multiple factors to consider before investing in new construction.

In this article, we are going to answer the pressing question, are new construction homes worth the investment? Keep reading to learn everything you need to know to make an educated decision. 

What You Need to Know About New Construction Homes 

Estimated Property Tax

When it comes to property taxes, purchasing a new construction home is very different from a previously owned home. Mortgage underwriters will use estimated property tax to calculate the proper tax bracket for new construction homes. If you are a buyer that has a high debt-to-income ratio, this could be a factor that could affect you more heavily than other buyers. On average, property taxes are higher on new homes, so make sure to do your research depending on your relocation region. 

New Property Appreciation and Equity 

If you are purchasing a home in a fast-growing market, there is a high likelihood that the value of your home will increase in future years. For homeowners that are looking to rent out their property, or resell years down the line, this might be something to consider. If you are looking for instant equity, make sure to be strategic about the location, structural integrity and amenities of your home. 

Extended Warranties and New Appliances

Most new homes will come with extended warranties and new appliances, which can be a great added bonus for new homeowners that want to cut down on future repair costs. When you go to look at new construction homes for sale, remember that these factors will vary. Real estate that is on the higher end will likely come with more benefits than a small, lower-cost residence. 

Not All New Construction Homes Are Created Equal 

There are a variety of new construction homes across the nation, and not all of them are inherently better than older homes. Buyers need to be aware that there is plenty of low-quality new construction real estate for sale. Before jumping into a hefty investment, make sure you know your building company and take a look at your previous work. 

The last thing you want is to commit to a house that has poor structural integrity. It’s also important to know what type of house you are looking to buy, as some types of houses may be better in older architectural and building styles. 

How to Find a Reputable Builder You Can Trust 

If you are ready to invest in new construction home real estate, it’s a good idea to get in contact with a credible REALTOR® that can help you scale down your options. There is a lot to take into account when looking for new construction homes for sale. 

You might be wondering, what is the best location? Is there a new development being built in the area? Who are the best builders in the region, and what is their previous portfolio? How do I find a new house that fits all of my needs? What budget do I need to have to get my dream home? A REALTOR® can help you with all of these pressing questions! New construction can definitely be worth the investment, but you need the right team on your side to make the best decision. 

If you’re searching for new construction real estate for sale, contact us today, your trusted and knowledgeable Verani Realty REALTORS®. Call your local Verani agent or visit for more information.

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