Welcome to The Pendergraft Team’s New Build 101—your go-to guide for navigating the exciting world of new construction. Whether you're a first-time buyer or a homeowner looking to upgrade to the custom home of your dreams, understanding the latest trends and updates in the new build market is crucial.
In this quick read, I'll help you explore recent stats for new home construction, the differences between master-planned communities and custom homes, and share why having an agent in your corner is an essential part of the process to ensure your new home comes out on time and on budget.
New Build Inventory
You may have heard that there are more brand-new homes available right now than usual. Currently, about one in three homes on the market are newly built. So, is there still a shortage?
Unlike the housing market crash in 2008 when an oversupply of homes contributed to economic turmoil, today's new build market is more balanced. Back then, overbuilding led to a surplus of homes—but this time around, builders are simply catching up after years of underbuilding.
Recent data from the Census highlights that we have only recently met the long-term average for home construction.
Despite the increase in new builds, there's no need to worry about an oversupply. Builders are mindful of past mistakes and are moderating their pace appropriately. This year, while the supply of new homes has grown, it's a necessary correction rather than an excess.
The Difference Between Master-Planned Communities & Custom Homes
When considering new construction, it's important to understand the differences between master-planned communities and custom homes. These two options offer distinct experiences in terms of quality, price, and control. So, let’s break it down.
Master-planned communities are developed by big builders who construct many homes within a planned neighborhood. These homes typically come with standard features and limited customization options, and the quality of these homes can vary based on the builder's reputation and the materials used. However, these communities generally offer lower prices than custom homes because builders benefit from scaling sales. Additionally, these communities often come with amenities such as parks, pools, and community centers, adding value for potential homeowners.
On the other hand, custom-built homes provide a more personalized approach to homebuilding. Buyers have greater control over the design, layout, and materials used in their homes, resulting in a unique living space tailored to their preferences. The quality of custom homes can be much higher, given the attention to detail and the ability to choose premium materials. However, this level of customization comes at a higher price and requires more time and involvement from the buyer.
Why You Still Need an Agent
Purchasing a new build can be an exciting process, but it's crucial to have a real estate agent by your side to represent your interests. While it might seem straightforward, buying directly from builders without an agent can lead to overlooked details and potential disputes.
- A real estate agent works for you, not the builder. Their primary goal is to ensure you get the best deal possible and that all your needs are met. They have experience negotiating with builders and can help you understand the contract terms, ensuring there are no unfavorable clauses. (This is why it can be difficult working with an agent you meet at the model home because they represent the builder.)
- Agents provide expert guidance in choosing the right builder and community. They have insights into builder reputations, construction quality, and can recommend areas that align with your lifestyle and budget. This local knowledge is crucial, especially if you're new to the area or unfamiliar with the market dynamics.
- Having an agent can help prevent and resolve potential disputes. From construction delays to issues with the final walkthrough, agents can advocate for you and ensure the builder meets their obligations. They can also assist in securing financing options and managing paperwork, making the entire process smoother and less stressful.
While buying a new build can be a great opportunity, partnering with a real estate agent ensures you have a professional looking out for your best interests. Their expertise, market knowledge, and negotiation skills provide a significant advantage, making your homebuying experience more successful and enjoyable.
The real estate world can be tricky, so it’s important to work with a team that will not only guide you through the hoops but also educate you about the process along the way. The Pendergraft Team is here to represent al your real estate needs and will look out for your best interests.
Call or text me today if you want to know more about the home-building process.