Are new-build homes more expensive?

While the upfront cost of a new build home may technically be higher, the price tag is not the whole story.

On average, new homes of a similar size do cost around 16% more than second homes.

A newly built home, after all, will have a brand new roof, appliances, HVAC equipment and major systems that the homebuyer may not need to repair or replace anytime soon.

In other words, while the sales price of a newly built home may seem more expensive, it actually saves the buyer the element of replacing, upgrading or bringing up to code a previously owned home, which can cost tens of thousands of dollars.

Have to wait a long time to move in?

Newly built homes do take time to build - on average, it takes about 6.5 months from the ground up.

However, this doesn't mean you need to wait that long, as builders often start building before they find a buyer. The construction of these specification homes may already be well underway or even completed before you close the deal.

So, if you simply don't want to wait, see if a spec house is available.

However, it is also worth noting that build times can vary considerably, especially as recent supply chain issues may lengthen them. Factors that may affect construction times include the availability of labour and materials, as well as the timing of permits from municipalities.

Be sure to ask when they expect to complete the house and what happens if the house is not completed on time.

Is it more difficult to finance a new build home?

In fact, the opposite is true here. Financing a new home can be easier due to the potential incentives of the builder and the fact that lenders prefer one to buy new (which means less risk).

Builders often maintain relationships, partnerships or even wholly owned subsidiaries whose primary focus is to help borrowers find better lending options.

In addition, title companies that work with builders often conduct "bulk title searches" for new lots in a community at one time. This helps urgent buyers get to the closing table faster.

If you are looking at a larger national builder, they will often have affiliated lending companies or their own lending company that will offer you some incentives to do business with them rather than an outside lending source.

If you happen to find a better deal with an external lender, perhaps someone you've been pre-approved with, most builder lenders will usually try to match or beat that deal to keep your business in-house so they can manage your mortgage paperwork directly.

If you are working with a small builder who does not have an affiliated lender, the builder will usually work with a local mortgage broker to assist the buyer in obtaining a loan.

Does a new home lose its value faster than the original property?

While it is true that new cars lose a lot of their value the moment they pull off the lot, the exact opposite is true of new homes. In fact, many new construction homes appreciate in value even before the buyer moves in.

Most buyers who purchase in the early stages of community construction can expect to build equity even before they take possession of their home, as prices rise as builders sell more homes. Once the entire community is completed, there is usually another spike in value.

Can't have a home inspection before you buy a new home?

You absolutely can have a home inspection before you buy new construction.

In fact, buyers who choose to purchase a new construction home can actually have their home inspected regularly throughout the building process, giving them and their inspector a better understanding of the condition of the home, the plumbing behind the walls, the electrical and HVAC systems, insulation, etc. than if they were only inspecting the completed home.

Having the inspector walk through the house before the drywall is installed will allow him to see that many important parts of the house will be covered up.

Newly built homes are also inspected by the local municipality throughout the construction process and a final certificate of occupancy is provided by these groups before they are allowed to move in.

Home buyers also have the opportunity to have a walk-through of their home before taking possession. All in all, there are plenty of opportunities to have your new home inspected.

New homes lacking character?

New homes have state-of-the-art design and as it relates to existing homes, the older the home, the harder it is to help the exterior of the home look up-to-date.

A new build home limits your options in terms of design?

There is nothing more limiting than buying an existing house.

It all depends on the builder. Some builders build houses to specification - meaning that the house has been built to certain specifications, in which case the client has few, if any, choices. Other builders build homes to plan, but allow for a variety of options and/or upgrades.

To determine what kind of builder you might work with, check the builder's reviews before signing a contract.

Don't need a real estate agent to buy new construction?

Technically, this is true: in many new construction home transactions, you do not need to have a real estate agent. However, it is still generally a good idea to have your own representative.

Because a new construction transaction is no different from any other real estate transaction, you may have the opportunity to negotiate price, contract terms, riders, completion dates and other incentives.

Having a real estate agent to help with this can help ensure that you get the best deal possible.