We in the Lakes Region have been seeing a significant increase in the number of build packages or homes to be built, and new construction in recent years. Buyers are faced with choosing between purchasing an already existing home, which has been lived in previously, or one which is currently being built/to be constructed.
A home is typically a person’s largest asset and source of wealth, so regardless of your own personal preferences to the “old world charm” of an already existing home or the convenience of “modern living” a new home may offer, taking real consideration to the eventual resale of a home at the time of purchasing is essential.
Many of the buyers in today’s market would prefer to own a brand new home if possible. The top reasons include open floor plans on the main level, larger closets and more storage space, four or more bedrooms as well as having some options in certain areas. Buyers also recognize the considerable difference in overall annual maintenance and energy costs, helping to make their long term monthly expenses significantly lower.
A buyer’s agent who has had either very limited or a challenging experience with a build package, land or new construction, may not encourage buyers to consider a new home. An effective buyer agent will be able to assist with determining which builders have a good reputation as well as help to navigate the process. We are very fortunate to have many established and reputable builders to choose from in the area, so making sure that you are working with a buyer agent who is both experienced and knowledgeable will help to ensure you make an informed decision as to whether or not a new home is right for you.
We often see a trend where buyers begin to take a closer look at new construction options after many weeks or even months of looking at the inventory of already existing homes on the market. After calculating the costs associated with making cosmetic and aesthetic updates or improvements, addressing any upcoming maintenance issues as well as any “surprises” which may come to their attention through the process, buyers realize that many already existing homes may simply not hold enough value to make it what they would need or want it to be.
Financing options for new homes do vary but typically a new construction loan is not necessary and you may be able to purchase a brand new home using Rural Development, FHA, VA or a conventional loan depending on the home and your unique situation. Turnkey homes are sold upon completion and are ready to move into. Most buyers request the same inspections and may be provided with the same contingency period for the purposes of investigations and due diligence as an already existing or resale property.
Nicole Foster is a Broker/ Realtor at Regency Realty working with buyers and sellers in all of Southern Maine since 2006. She resides in Windham with her husband and four children. She may be reached at columnist@TheWindhamEagle.com.