What's Different in the Process of Buying a New Build Compared to an Existing Home?

What's Different in the Process of Buying a New Build Compared to an Existing Home?If you're already a homeowner but you are considering buying your first new build, it helps to know the differences in the process. While there are some things that are the same in any home buying journey, buying a new construction home in Texas Hill Country differs in some ways. We can walk you through the process to make sure you are confident and informed each step of the way. 

These are some of the differences between buying a new build and an existing home.

Timeline

One of the most significant differences between buying an existing home and a new build is the timeline. The majority of the time when you buy an existing home, you will have something like a 30 day escrow period between when you have an offer accepted and when you get the keys for the home, possibly even shorter. 

When you buy a new construction home, it's not always this straight forward. If construction has already been completed, you may have a similar timeline, but if the home is either being built to your customization or is still under construction the timeframe can vary significantly. 

Make sure that you have a plan in place in case of delays or even an accelerated timeline. Building a home means having an estimated completion date that can shift significantly depending on weather, supply chain, availability of contractors, speed to getting permits approved, and other factors. 

Customization

One of the most significant advantages of buying a new construction home is the opportunity for customization and personalization. Many new construction home builders in Texas Hill Country offer a range of floor plans, design options, and upgrade choices that allow you to tailor your home to your preferences and lifestyle.

From selecting finishes and fixtures to choosing layout options and architectural details, buyers have the freedom to create their dream home from the ground up. While you can renovate an existing home, taking on home improvement projects or a major remodel are going to require a completely different level of effort, and the financing will need to be different as well. Most buyers looking at existing homes are requires to compromise on certain features or invest in renovations to achieve their desired aesthetic and functionality, while new build buyers get to move into the home they prefer right away.

Financing

New construction homes can come with a higher price tag due to the customization options and modern amenities, as well as the prestige of the community in which they are built. However, buyers of new construction homes may save money on maintenance and repairs in the long run.

In contrast, existing homes may offer more competitive pricing and negotiation opportunities, especially in buyer's markets or for properties that require updates or renovations. 

It's also smart to talk with your lender and see if there are any distinctions between buying an existing home or a new build. For example, you can often include many upgrades in your mortgage with a new build, making it more affordable than a remodel of an existing home might be if you need to come up with all the cash for the project. 

Negotiation

The negotiation and contract process for new construction homes versus existing homes can vary in terms of complexity and flexibility. When you are purchasing a new construction home, you will typically enter into a purchase agreement with the builder or developer, which may involve negotiating pricing, upgrades, incentives, and contractual terms. Builders also sometimes offer incentives or promotional offers to attract buyers, such as closing cost assistance or appliance upgrades.

On the other hand, buying an existing home involves negotiating with the seller directly, through your real estate agent, and may involve different contingencies such as home inspections, appraisals, and financing approval. The actual contracts and negotiations are different depending on the type of home you are planning to buy. Depending on the market conditions, you may have more negotiation power in either of the two cases, and we can help provide some current context for you if that's an important factor in your decision. 

Ready to learn more about buying a new construction home in Texas Hill Country? Contact us any time.

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