Is new construction still a good option with all the great deals out there?

New construction is a viable solution in any growing market, but even in a slow market builders tend to take a smaller profit margin in order to compete.  So the cost of buying new construction will be comparable in most markets to buying exhisting.  The one key factor is are you in a situation that will allow 70-120 days to build your new home.  You will pay market value for the home, but for some this is what they want to do and it has remained a great option for many even over the past year.
  • May 19 2010 - Kingsland
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Answers (11)

I certainly agree, a home should be something you purchase for long term investment and for your families enjoyment.  It was almost impossible to look beyond our Foreclosure market for the extremely good deals, but most of our Foreclosure market is drying up and new construction has returned as a very viable market choice.  I work with a Good Sense builder and the quality is amazing!
  • August 28 2012
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Profile picture for Alan Grizzle

Buliders can now by lots for around $10,000 that at one time cost up to $40,000. That just reduced the price $30,000. This is starting to let builders reduce ther price to match that to some of the Foreclosure prices.

  • May 24 2010
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I don't know about GA. But, in SoCal there are some fabulous "deals" on higher valued new construction property. You need to read your local newspapers and contact some builders that have started producing homes again. .... Happy funding, Rudi  
  • May 23 2010
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Alot of our homes in MD are pre conctruction. Because thay had to stop building, they now can offer HOLLYWOOD upgrades. Customize up-grades to fit the qwners liking. Talk about a steal right now! $800,000 to now as low as $500,000 this is big deal out up here. Mortgage Brokers can help.
  • May 22 2010
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Also, what Buyers don't seem to understand is the Builders generally welcome Realtor interaction. I have been a Sitter for a new home site and Realtors are very involved in the process.

On many occasions, the commission is even better than selling pre-owned homes and more incentives for the Buyer.
  • May 20 2010
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Profile picture for Matthew Allan
Builders are building cheaper than they have in years, and even newer communities (2005-2009) have seen price depreciation.  In Savannah, builders are buying land at discounts from other builders who have gone out of business, so they can afford to build cheaper.  My investors are building  in Savannah's Victorian District and are acquiring lots to build others.  It's cheaper than buying/renovating an existing house and they can pass along the savings to buyers.  Of course, every situation is different, and if you have a seller who has owned for 20 years, needs to sell, and has enough equity to withstand the losses of the last few years, you could very well get a good deal.  But I think new construction is generally a good deal right now.
  • May 19 2010
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I find new construction in my area rather feasible with many builders and many are willing to pay full or partial closing cost, which can easily be a savings between $3500 - $10k.  Builders are providing many incentives in order to move the property and the Buyers get a brand new home.

Time frame is averaging approximately 70 days but this can also be beneficial for the Buyer, should they need time to accumulate more funds for closing.  There are also a few that have inventory, ready to sell.
  • May 19 2010
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Profile picture for Randy Mabry
We have a couple builders here that are building new, slab homes for around 60/sq ft.  Granite counters, upscale cabinets, and hard for used homes to compete with.  They have about 6 styles and even up to about 2600 sq ft for around 140K. 
  • May 19 2010
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You will see new construction on the rise due to the surge in home purchases as a result of the tax credits.  However, construction costs fluctuate dramatically, and the existing homes know that they are competing like never before with new construction and are therefore reducing their prices. The hidden costs of new construction are often overlooked. Landscaping is costly, and people are usually surprised at what it takes to bring a home up to the calibre of an existing home!
  • May 19 2010
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If the new construction home is in a new development with construction going on for several years, the Buyer should consider how long they will stay in their home.  If the Buyer needs to sell before the new construction is done, the Buyer will be selling a "used home," as opposed to a newly constucted home, which may devalue the Buyer's existing home. 
  • May 19 2010
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For some it's the only option. If you have an exact idea of what you want or need and can't find it on the market building new is the solution for you!

  • May 19 2010
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