You're in the market for a new home, but you're not sure where to look. Do you focus on existing properties that are move-in ready or put your name down for a new construction home?
Austin has seen a slowdown in new construction homes in 2024, but there are still plenty of opportunities for buyers. If buying a property that was never lived in has always been your dream, PMI agents can help.
To get started, let's talk about the pros and cons of buying new construction. Read on for our primer to new construction advantages and risks in Austin.
Top Pros for Buying New Construction Homes
Undoubtedly, one of the biggest off-plan advantages is that you have a say in the design of your home. Most new construction communities offer a handful of different floor plans with optional add-ons. This makes it easy to meet all of your must-haves without having to take on major renovations down the line.
New build homes can also be easier and cheaper to insure. This is because policy rates take calculated risk into consideration, and new construction is less likely to need major renovations, like foundation repairs or a new roof, in the near future.
Biggest New Construction Risks
There's a common misconception that a brand-new home is always going to cost more than an existing property. While this isn't the case, financing a new-build home can involve extra steps. Make sure you understand parts of the home purchase process such as when payments are due, as this can differ from traditional mortgage payments.
While you're taking on fewer risks moving into a new construction home, you're accepting more risks on the front end. During the construction process, your builders can face unexpected issues or delays. This can lead to higher costs, but it can also push back your move-in date.
Additional New Home Buying Tips for Austin Buyers
If you're interested in new construction, make sure you research the building and development team before signing up. One of the advantages of buying an existing property is that you can schedule an inspection before signing the contract. If your new-build team does poor work, you may find yourself stuck with a lemon.
Unless you're set on living in a specific location, don't close yourself off to alternative options. On the other end of the spectrum, investors and homebuyers can see a lot of success buying foreclosures, especially if they have ample resources for renovations.
Looking for a New Home? Call PMI Austin
This year, we're not seeing as many new construction homes in Austin. However, there are still developments in the works. With the right real estate agent, you can keep your finger on the pulse of off-plan housing in the Austin area.
At PMI Austin, we play an active role in every stage of real estate, from buying and selling to managing rental properties. This puts us in a unique position to give investors and home buyers the best advice for buying Austin real estate. Contact us to learn more about how our agents can help.
