If you’ve been overlooking newly built homes, chances are you’re relying on some old misconceptions. Let’s break down a few common myths so you don’t miss out on a great chance to find the right home.

Myth 1: New Homes Are More Expensive

You might think a new build always costs more than an existing home, but that’s not always the case—especially these days.

According to data from the Census and the National Association of Realtors (NAR), the median price of a newly built home today is actually lower than that of an existing home.

So, why is this happening? Heather Long, Chief Economist at Navy Federal Credit Union, breaks it down like this:

““This largely reflects two trends: New homes are getting smaller on average, and builders are doing more price cuts.”
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— Heather Long, Chief Economist at Navy Federal Credit Union

If you’ve dismissed new construction because of the price, it might be worth reconsidering. Reach out to a local real estate agent to check out what’s currently on the market and at what prices.

Myth 2: Builders Don't Negotiate

A lot of buyers think builders won’t be flexible when it comes to negotiating, but that’s not really true. Many builders have finished homes they’re eager to sell, which means they’re often willing to work with buyers and make some compromises. Mark Fleming, Chief Economist at First American, points out that some builders are motivated to move inventory quickly, creating opportunities for negotiation.

““. . . would love to sell you the home because they’re not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown . . .” 
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— Mark Fleming, Chief Economist at First American

Builders often have more wiggle room than individual sellers and are usually more willing to include incentives to close a deal. In fact, according to Zonda, 75% of new home communities were offering incentives on quick move-in homes in June.

Myth 3: They Don’t Build Them Like They Used To

Some folks believe that newer homes don't have the same craftsmanship as older ones. But the truth is, quality can differ no matter when a home was built. What really counts is choosing a trusted builder, not just the age of the house.

The National Association of Home Builders (NAHB) suggests one of the best ways to check a builder’s quality is by chatting with people who have recently bought homes from them. In fact, NAHB points out in an article that getting firsthand feedback from recent buyers gives you a clearer picture of what to expect.

““Any high-quality builder should be ready to provide you with the names and phone numbers of satisfied customers. If they cannot, consider that a red flag and walk away.”
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— NAHB

The article recommends checking in with buyers by asking questions such as:

• How did the builder live up to what you were expecting?

• If you were to build again, would you choose the same builder?

You can also ask your agent about the builder’s reputation. Agents usually know the builders working in your area and might have firsthand experience with clients who have bought homes from those builders.

Myth 4: You Don't Need Your Own Real Estate Agent

This might be the biggest myth out there. The truth is, when you’re buying a brand-new home, having your own agent is actually even more important. Builder contracts often come with tricky fine print, so you’ll want an expert by your side who can clearly explain everything you’re signing and look out for your best interests.

These numbers really back that up. A Realtor.com survey found that buyers of newly built homes rated their real estate agents as much more helpful than the builder or the builder’s representative throughout the buying process (check out the visual below).

Bottom Line

Don’t let misunderstandings stop you from checking out one of the best opportunities in today’s housing market.

If you’re interested in what new developments are happening nearby or want to see if a new home fits your budget, let’s chat and explore your options together. You might be surprised by what you find.