Are you considering buying a home soon and not sure if you’re interested in moving to an existing or newly constructed home? Here at The Atacan Group, we understand that most people in Philadelphia, a city with buildings older than the country itself, don’t have much experience with new construction homes, so we’ve compiled a list of pros and cons to help make your home buying process a little easier!
Pros of New Construction Homes:
Major repairs are not typically needed in the first few years of buying a newly constructed home, and most new construction homes have warranties for at least the first year in case anything malfunctions.
New homes are typically more energy efficient than older homes. The builders tend to use double pane windows and better insulation, which older existing homes may not have.
New homes can typically receive tax abatements in Philadelphia. (The developer should start the process of applying for the abatement when building the home.)
New homes typically allow you to make some customizations if you buy early into the construction process, such as countertops, built in appliances, lighting and sometimes even layouts too!
New homes are generally larger and have modern layouts
Homes are built to modern building code standards and can’t be sold to buyers without obtaining Certificates of Occupancy from the city.
Because new constructions homes are built to modern building codes, homeowners insurance premiums tend to be cheaper for new homes than for existing homes.
Cons of New Construction Homes:
New homes are typically priced higher than existing homes in the same neighborhoods.
Home builders are not as open for negotiating sales prices of their homes. Builders are typically open to negotiating for upgrades instead.
Construction timelines are often unpredictable and can cause delays to estimated settlements. Building a home from the ground up is a long process with many moving pieces, and anything from receiving building materials to establishing utilities and even the weather can increase the time it takes to complete.
A new construction home can be a less unique design, especially if the developer is making multiple homes in the same project.
Landscaping is new and won’t include large trees like in an existing home lots.
You most likely won’t see the home until after it’s built- developers will use renderings (or illustrations of the proposed architectural design) and interior images of other homes they’ve sold, but you won’t see the home until the Delivery (the walk through when you’re finally able to inspect the home before going to settlement).
Sometimes the locations of new construction homes in the city can be less than ideal. Developers like building in “up and coming neighborhoods,” which doesn’t necessarily mean the most enjoyable neighborhoods to live in while they’re still in transition.
Thanks for reading! If you have any questions, have our transaction manager arrange a day to tour new homes with one of our experts, by clicking HERE.