Are you in the market for a home but struggling to find ways to save on costs? Buying new construction may offer some savings. When looking at incentivized interest rates, maintenance and renovations – it’s clear costs will be down over a traditional resale home.
Interest Rates for the Win When Buying New Construction
With the average mortgage rate on a 30-year fixed rate mortgage coming in at 7.28% on June 26th (up from 7.24% the week prior) most buyers are looking for ways to save. Enter the idea of a new build. In local communities, I’ve seeing rates of 4.25% (4.696% APR) advertised with Lennar in SilverLeaf and offers of $10k towards closing costs on select homes. For those qualifying for these ncentives, the payment would be significantly reduced over a conventional mortgage at a higher rate.
General Maintenance Covered for a Year and Beyond
The majority of new homes come with a 1-year full home warranty. This can save home owners on unsuspected maintenance costs during their first year of homeownership. Additionally, things like ductwork, plumbing and electrical systems will be covered for two years. Many builders will contract for coverage up to 10 years and cover damage/defects related to major structural components.
Renovations – What Renovations?
With new construction – typically renovations are not warranted for the immediate future. Most builders strive to build their models based on current design trends. In turn, when taking ownership of the residence, buyers find that major renovations are not necessary. Renovation costs can be significant and a challenge to balance – especially for new homeowners. Being able to avoid costly renovation budgets can afford time to save for future projects and changes.
Buying New Construction May Offer Savings
Home ownership offers many perks to buyers including a chance to build equity, tax deductions and stable monthly payments. With incentives on financing, builder warranties and lack of renovations needed, new builds should be atop the list for consideration. As with anything – if something seems too good to be true – always read the fine print and consult with an expert. Often times, these offers are on existing inventory which may or may not work for you/your family. If you will be considering this route – before making a deposit – I would strongly suggest arranging a call with the builder’s preferred lender. I’m happy to help guide you through points to consider if this is a path you would be interested in pursuing.
With a number of new communities under construction in St. Johns County and the Jacksonville metro area, there are plenty of options to consider. If you would like to tour some models or view quick move in homes, please get in touch and let’s schedule some time together.