Myths About Buying a New Construction Home

Myths About Buying a New Construction HomeBefore you buy a home in St. George, make sure you know the difference between fact and fiction about buying a new construction home to shop with confidence. There are some common and misleading myths about new builds that we want to help dispel for you as you decide what type of home in St. George is going to be right for your lifestyle, preferences, and budget.  

Myth: You Need a Huge Down Payment

Many buyers think that purchasing a new construction home requires a significantly larger down payment than buying an existing home. While some builders might require a higher deposit to secure your contract, there are often financing options available that cater to a range of budgets. Additionally, builders sometimes offer incentives, such as reduced down payments or assistance with financing, making it more accessible to a broader range of buyers.

The bottom line is, ask your lender and a few builders in the area before you assume what kind of financing is available to you. 

Myth: New Construction Homes are Always More Expensive

While it’s true that new construction homes can sometimes come with a higher price tag due to modern amenities and contemporary designs, this is not universally the case. When comparing similar features and locations, new homes can be competitively priced against older homes.

Additionally, new construction homes often require less immediate maintenance and fewer repairs, potentially saving buyers money in the long run. Incentives from builders, such as covering closing costs or offering upgrades, can also make new homes more financially attractive.

We asked Greg Smith of Boulder Home Source for his opinion:

"Buying a new construction home offers a range of benefits that many buyers overlook. Not only do you get to enjoy modern amenities and energy-efficient designs, but you also have the opportunity to personalize your space to fit your lifestyle. And contrary to popular belief, new construction homes aren't always the more expensive option. With fewer immediate repairs, lower maintenance costs, and potential builder incentives, you might find that a brand-new home is more affordable in the long run. Plus, the peace of mind that comes with a builder's warranty is invaluable. Investing in new construction is not just about purchasing a house; it's about securing a home tailored to your future."

Myth: There are Always Hidden Costs

While it's true that there can be additional costs in new construction, such as landscaping, window treatments, and appliances, these expenses are often no different from what you would encounter when buying a resale home. The key is to budget for these items and be clear about what is included in the purchase price.

Builders typically provide detailed lists of included features and available upgrades, helping you plan and avoid unexpected expenses. If you're not sure, we're able to help you get all the information you need to avoid hidden expenses that show up unexpectedly. 

Myth: The Warranty Covers Everything

New construction homes typically come with warranties that cover various aspects of the home’s construction and systems for a certain period. However, these warranties are not all-encompassing. It’s essential to read and understand the warranty details, including what is covered and for how long. 

When you understand what it covered, you can decide whether you need additional insurance or not, and you can also make sure to pay careful attention to the home inspection report, which brings us to the next myth. 

Myth: New Builds Don't Need an Inspection

Unfortunately, many buyers of new construction homes assume they don't need to be inspected. However, just because they are brand new doesn't mean they are perfect. Construction defects, faulty installations, or unfinished work can occur. A professional home inspection is just as important for a new construction home as it is for an older home. Even reputable builders may make errors here and there, and the home inspection is your chance to make sure everything was done correctly. 

It will give you peace of mind to know you're getting the home in the brand new condition you expect. 

Ready to find your home in St. George? Whether it's a new build or an existing home, we can help. Contact us any time to get started. 

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