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What are the Benefits of Buying a New Construction Home Prior to Construction? Or Under Construction Vs. Move-In Ready?

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Why should you buy a home in pre-construction?

Buying a home in pre-construction, what is pre-construction? It is a time that you actually are driving by in a neighborhood, and you see this home that is being built by a builder and the home is in the framing stage, or in the block stages. 

When you've decided this is the neighborhood that I wanted to live in, and this is the house I liked. So you contact the builder and you say, Mr. Builder, I'd like to buy this home. I know you're building it, and maybe it's down the road, maybe in a few months you're going to complete it, but I like to put a contract on your home that is pre-construction.

What is the benefit of buying from pre-construction?

1. You secure the price today, in today's market.

The builder might say, this is my price today but if you wait six more months until I'm done, maybe the house will cost more after it's done. So you, as one of the benefits that you have secured a good price, also think about interest rates.

Today we have low-interest rates but we don't know what's gonna happen in six months. If you go and you place a contract today on a pre-construction home, you take advantage of today's interest rates. 

2. You can make selections of finishes that fit your style

There's a lot of things that you can do in that home. For instance, you can select your flooring, you can select your countertops, you can select the bank callers.

There is a lot of things that the builder will allow you to select because he has not bought that yet in order to install it. So the time is if you have an option that you can choose I like this color, I like this countertop, I like this flooring. And the builder will make exceptions and he will help you navigate and he will help you actually choose what you want in that house that he's building.

3. Construction Process

Also, one of the benefits of buying in pre-construction is during the construction period, the builder will allow you to go to the site.

Obviously, he's gonna go with you because it is a construction site but you can actually see the progress of that home. So you put in a contract on a pre-construction home but you can see that home comes alive as you go.

4. Removes the Risk of Building

Another reason for buying pre-construction is maybe you're in the market for a new home and maybe you think about buying your own lot and having a builder building on your lot.

Well, buying a lot is not as easy as it sounds. Buying a lot is sometimes risky if you don't know what to look for. When builders buy a lot, they do all the due diligence necessary to make sure that, that is a buildable lot, that the lot doesn't have any issues with the soil. 

A Homebuilder does a lot of due diligence in order to say, this is a buildable lot and this is how I'm going to build if I can build a home or not, but you don't. If you think that you're going to buy a lot and you're going to just build a house, well, there's a lot to take into consideration. There's risk associated with that.

While if you're buying a home in pre-construction, you know that the builder chose a lot that is buildable, it's a lot in an area that you like, are a neighborhood that you like, and the price. Maybe it's the price that you have budgeted for.

If you buy your own lot, the unknown that comes with the lot also comes with a price that you're going to spend in building that house. Because you have no idea how much it's gonna cost you to build that home in your lot. In other words, stay with pre-construction, safe and sound.

If you're looking for a home drive around several neighborhoods. If the builder is building it, don't hesitate to talk to that builder, find out about what he's planning to build and maybe he has rendered he's already over the finished product that you will see.