With interest rates still at historic lows, it may be an excellent time to purchase a home. If you’ve been dreaming of becoming a homeowner, you may be wondering whether a brand-new home or a fixer-upper is your best choice. Interested in exploring the pros and cons of each? Here, we share more about each option to help you determine the right path forward. If you love the idea of new construction but prefer the peace and quiet of nearby green space, Independence’s new homes offer the best of both worlds.
Examine Your Priorities
The housing market is competitive in every corner of the country, making it challenging to find a home. Although it may be tempting to put in an offer on the first home that fits your criteria (and your budget), be sure to think about your priorities before moving forward. If you want your new property to feel like home from the moment you move in, new construction may be a better fit than an existing house that needs some TLC.
Evaluate Your Budget
If you’re thinking about purchasing a home that needs significant repairs, it’s crucial to have an in-depth understanding of what the renovations will cost. Even if you’ve found a home that’s priced competitively, renovations may end up pushing the total cost above what you’d pay for a brand new home (especially when accounting for the soaring prices of lumber). If you decide to buy a property that needs renovations, a 203(k) loan (also known as a Rehab Loan) may be a practical option, as you’ll gain access to funding for renovations and the home itself in one loan.
On the other hand, a new home will provide peace of mind for those hoping to avoid renovations. New construction almost always comes with a warranty, so you won’t have to worry about additional hidden costs for at least the first year. Plus, newly built houses are constructed with the latest technology and energy efficiency in mind.
If you’re excited about the prospect of becoming a homeowner, choosing between a rehab project or new construction is one of the most important decisions you’ll make. Many buyers consider older homes or fixer-uppers because they’re drawn to the price point and local amenities but end up going over budget with renovations or compromising on outdated style. When you choose Independence’s new homes, you’ll get the best of both worlds: modern features combined with an abundance of preserved open space right outside your front door. In addition to our coveted community features and cutting-edge design by our builders, Independence Neighborhood is USDA eligible. Interested in learning more? Please contact us for a model home tour.