Most people assume a newly built home costs more than an existing one. But right now, that’s not always the case. In many markets, new homes are actually more affordable. Builders are offering price cuts and incentives to help move their inventory, which could mean more savings and opportunities for buyers.

Here’s why this is so important for anyone thinking about buying a home right now.

Newly Built Homes Are the Better Deal Right Now

According to the latest data from the Census and the National Association of Realtors (NAR), newly built homes are now typically selling for about $40,000 less than existing homes, as shown in the graph below.

Builders don’t have the same luxury as homeowners who can wait for the right offer. Every unsold home costs them money, so they’re finding ways to get buyers off the fence. That means cutting prices and offering incentives, and that trend is continuing into August.

According to the latest NAHB data:

• 35% of builders have cut prices, with an average reduction of 6%.

• 63% are offering incentives, such as covering closing costs or helping buy down your mortgage rate.

Those incentives can make a big difference in what you pay upfront and even lower your monthly payment. And since everything is brand new, many builders also offer warranties, which can help reduce maintenance costs. When affordability matters, every dollar can make a difference.

So, don’t count new construction out just yet. You might assume a brand new home will cost more, but these days, that isn’t always the case.

If you can get a brand new home for less than an existing one, isn’t it worth taking a closer look?

Don’t Let the Builder Pick Your Teammate

Before you tour a single model home, there’s one important thing to figure out first: who’s actually looking out for your best interests when you walk through that door?

That friendly person in the builder’s sales office works for the builder, not you. Their job is to look out for the builder’s bottom line. Your own agent is there to look out for your best interests.

They know the local market, so they can help you compare the builder’s price and upgrades with other homes in the area. They can also negotiate for you, whether that means a better price, free upgrades, or a lower mortgage rate.

A good agent will also encourage you to get a home inspection. Builders may not always mention it, but it’s a step you shouldn’t skip, even with a brand new home. Your agent will be there to protect your interests, help you understand what you’re buying, and make sure you get the best deal possible.

Bottom Line

New homes may actually cost less than existing ones right now. That could give you a great opportunity to get a brand new home for less.

If you’d like a list of new home communities near you that are offering incentives or price cuts, let’s connect. I’ll help you explore your options and make sure you have someone in your corner to help you get the best deal possible.