In the Building vs Buying Series, we are outlining the pros and cons of the options. This installment will discuss in more detail the risks of building a home in a new development. Below are a few considerations to keep in mind when building a home in a new development.
Do you have the rights to sell the home?
As excited that you might be about buying a new house, you must consider the long-term plans. Similar to a “non-compete” clause, builders can require that you cannot sell your home for a specified amount of time. Before you sign the contract ensure that you are comfortable with the terms of the contract.
How many homes are left to be built?
When buying a newly built home the unbuilt homes in the neighborhood are your biggest competitions. As a seller, how would you market your home against a potential of a new home. Why would they purchase your preowned home over the potential of a brand-new build? Even with the rights to sell, you could be in for a loss when it comes to selling your home.
Does the neighborhood have enough developed amenities?
New housing developments are often the center of a new neighborhood developments. They lack developed amenities such as restaurants, grocery stores, and health services. The up-and-coming neighborhood could also be a hub for future developments.
In the end, building a home has it pros and cons. It is important to choose the best option for your family.