September 24, 2017
Advantages to Buying New Construction
Are you looking for a new place to call home? Perhaps you’re considering home ownership instead of apartment living, or need more space for your growing family. Maybe a new job means you’ll be moving to another location, or you may just want a change of scenery. In any case, you have a lot of choices to consider. One of them is whether you want to enter the resale market or go with new construction.
Many potential buyers immediately rule out the possibility of new construction, believing it is more expensive than a previously owned home. Fortunately, this is not the case.
When homebuilders set their prices for their product, they must take into consideration the local housing market and remain competitive with the overall pricing structure that prevails in the area. If their houses are priced higher than the market will bear, they will face serious losses and possibly even closure of the business. Local standards for the cost of materials, land and labor will have a huge influence on the price that is set. While homebuilders must also consider their profit margin, they strive to provide a quality product at a price that is appropriate for the marketplace.
The competitive pricing of new construction isn’t the only reason to look seriously at purchasing a brand new home. There are several other advantages to consider.
Have it your way…
Burger King isn’t the only business that lets you choose the exact elements you want when you buy. You can select the specific floor plan you want, and for a reasonable fee, most builders will be open to further customization of a standardized plan. You can choose the exterior that suits your taste and load the interior with the exact items you want. You won’t have to replace old-fashioned powder blue bathtubs or scarred dark wooden cabinets. Choose the flooring you crave, whether it’s tile, carpet or hardwood. Add patios or covered entryways; enjoy the convenience of an attached garage. It’s up to you!
No problem…you’re covered!
New home warranties will give you both peace of mind and financial security. When you move into a brand new home, you won’t be inheriting someone else’s problems. Since everything is new, it’s unlikely you’ll be facing significant repair bills for a good long time. New appliances, fixtures and finishes are a huge plus. Even if they do malfunction or break, they’ll usually be covered by your warranty.
Let’s talk taxes…
For the first year to two years, owners of new construction get a lucky tax break. Many home owners don't realize that their property taxes for the current year are based on the home value established in the previous January. The taxes due for 2018 are based on the approximate value of your home in January of 2017. Let’s dive a little deeper into how this affects buyers who purchased new construction.
You sign the contract for your new home on March 1, 2018. The closing for your home takes place on June 30, 2018. Your taxes for the balance of 2018 are calculated based on the January 2017 value of lot on which it was built. Since construction didn’t begin until March of 2018, your 2018 taxes are also based on the value of the building site only.
When 2019 rolls around, the taxes due will be based on the full value of the home, but in the meantime, you took advantage of 18 months of lower taxes based on the worth of the property alone. When you buy a resale home, you pay the full boat of taxes from the very beginning. This advantage can produce significant savings based on the difference between the value of your home versus the value of the lot on which it was built. A “tax discount” of $100 - $250 a month isn’t unusual.
A sense of community
The communities created by new construction are often places where planned activities such as group yard sales, block parties, holiday gatherings and neighborhood watch programs help foster a sense of kinship. Since many people move in to these new developments around the same time, their shared experiences often encourage higher levels of interaction. If you’re looking to make new friends, buying new construction can easily open that door.
Sometimes, it’s nice to own something new…
And – last but not least – it’s always fun to own something that no-one has owned before. Like “new car smell” and a fresh pair of unscuffed shoes, there’s just something special about a brand new home!
If you think new construction might be the answer to your housing question, don’t hesitate to contact us at Ernest Signature Custom Homes. Our friendly, knowledgeable staff is here to answer any questions you may have about new construction in Savannah, GA and the surrounding communities. Drop us an email or call us at (912) 756-4135 to learn more!
