Top Reasons to Buy a New Home
Owning a home is a big part of the American Dream. Here are some top reasons to buy a new home.
There’s something about buying new – like a car and that “new car smell,” or even a brand-new pair of running shoes – a springy set of new rubber, ready for the trail and new personal records.
Buying a new house is a lot like that, too, with countless advantages for consumers. Consider low interest rates. Incredible rates in the early 2000s launched an unprecedented housing boom in the U.S.; in fact, in 2003, new home sales exceeded 1 million for the first time in industry history.
Low rates, low maintenance
Those rates are still at historic lows today – hovering just under 6 percent for a 30-year fixed mortgage for those with stable income and good credit. If you’re the kind of buyer who is planning to stay in whatever home you buy for a few years, now is a great time to buy new. Why? If you’re renting now, your mortgage won’t be much more than your monthly rent – so you might as well start building some equity in something you own.
Maintenance – or lack thereof – is another reason to buy a new home. After all, since new homes are brand-new, the headaches that come with the maintenance on an older home simply don’t exist yet – and won’t for a while. Also, those who buy new homes often don't want to worry initially about upkeep and repairs. Consider that new homes tend to use more modern architecture and systems that are usually easier to maintain, and they’re likely much more energy-efficient than homes built just five years ago.
Designed for you
New homes also have more design-from-the-ground-up options, with a dizzying array of amenities at many new home builder design centers. It’s those newer options that buyers want.
Specifically, according to the 2007 Profile of Buyers’ Home Feature Preferences, conducted by the National Association of Realtors, today’s buyers want a walk-in closet in the master bedroom (53 percent of respondents); hardwood floors and granite countertops (28 percent and 23 percent); and homes that are cable/satellite TV-ready (46 percent).
Save money
Finally, buying new also makes good financial sense. Consider that mortgage interest and real estate taxes are deductible on income tax returns, and that there are more choices than ever when it comes to financing options – from energy-efficient mortgages (EEMs) for green homes to new, government-backed mortgage options with higher loan limits as part of the nationwide economic stimulus package.
First-Time Home Buyer Tax Credit
Opportunity of a Lifetime for First-Time Buyers
For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime.
But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before November 11, 2009 are eligible. Use the links below to learn more about the tax credit.
Why New Homes Are Better Than Existing Homes:
1. Pride inherent in being the first owner of a home that is an expression of your decisions on options, decorating and landscaping.
2. You don't have to worry about replacing avocado carpeting and puce countertops as well as aging appliances and roofs. You select the colors of the paint, wallpaper, appliances, flooring, etc.
3. A new home is configured to suit your needs and features numerous conveniences such as built-in appliances and walk in closets. They are also being wired to take full advantage of today's communication and entertainment technologies.
4. New homes carry better warranties, and new home builders are subject to more stringent disclosure standards than existing home sellers.
5. New homes are safer. They feature better wiring systems and meet today's stricter building codes.
6. New homes are healthierbecause asbestos, lead, and other hazardous materials have been eliminated from home building products.
7. New homes are more energy efficient. Due to better windows, more efficient heating and cooling equipment, better control of air infiltration, and greater use of insulation, new homes are twice as energy efficient as homes built prior to 1980.
8. Existing homes require more maintenance and upkeep than new homes.
9. New homes are less expensive to maintain. A new home can be operated for 20-30% less than a home built in the 60's.
10. Buyers in new home communities make friends quickly. They share an all-in-the-same-boat feeling with their neighbors. Everybody is the new family on the block. Just as all their trees are growing at the same time, their kids are as well, leaving a trail of beginnings, growth and change throughout the community.
Unlike established neighborhoods, where cliques and long-standing friendships may already exist, new homeowners share something unique. This can create a strong and long lasting bonds.
Why Buy A Newly Built Home: The Emotional Aspects
There’s something about a new home. Some say it’s the smell of new lumber, carpet and paint, others say it’s that no one has used it before; kind of like a new car coming directly from the factory.
One thing is certain; of all the reasons to buy new homes, emotion has to be one of the biggest factors influencing a buying decision. But when you think about it, emotion is the key to many purchases, both big and small. When we watch the beautiful people drive elegant cars down ribbons of coastal highways, we picture ourselves behind the wheel, and our hearts flutter. When we see anonymous sunbathers in TV commercials, throwing their pagers and cell phones into crystal clear ocean waters, we wish we were on the next lounge chair.
So it is when we walk through a builder’s model homes. The dose of fantasy is created by what the builder has put into its model home complex, inside and out. The reality part hits when we analyze the builder’s floor plan designs, carefully study the price list, and have the on-site salesperson calculate the monthly payment.
Celebrating the moments . . .
What we are buying, however, is much more personal. “Consumers are really buying both the daily and special event aspects of what will become their memories of home,” says Chris, the owner one of the country’s top builders. “It’s the pictures that are conjured up in their minds when they think of Thanksgiving dinner being served in the dining room, quiet evenings nestled cozily by the roaring fireplace, or noisy pool parties in the back yard.”
Rowing with the same oars . . .
Chris goes on to say that people also recognize the all-in-the-same-boat feeling people have with new home neighborhoods. “Everybody is the new family on the block,” he says, “Just as all their trees are growing at the same time, all their kids are, too, leaving a trail of beginnings, growth and change all over the community. This is an especially strong draw when people relocate to a new home community from out of the area.”
Unlike established neighborhoods, where cliques and long-standing friendships may already exist, new homeowners share something unique. “This can be a strong bond between neighbors, making them somewhat reliant on one another in lots of good ways,” says Chris.
Mirroring who we are . . .
The personalization aspect of a new home purchase is also a strong one, affecting emotions at every turn and making the house a unique reflection of its original purchaser. That magical trip to the builder’s design center, where new homebuyers select their carpets, countertops, floor plan options, and fixtures from a dizzying array of shiny new products and surfaces, is one they don’t soon forget, even when, years down the road, they may wish we had chosen the fancier bathroom faucets or the master fireplace.
“New homes are indeed what lots of dreams are made of,” says Chris. “Homebuilders who recognize this, but also find ways to make these dream reality for their buyers are the ones who come out on top and enjoy the strongest loyalties from their buyers, “ he says.
Getting practical . . .
“But they have to be good at selling the steak, and not just the sizzle these days,” he admits. “Homebuyers have become more sophisticated than ever before. They will shop and compare builders, ask dozens of questions, and sometimes even door-knock in new home neighborhoods to ask homeowners how they like their new homes.”
Indeed, location, quality and reputation play major roles in the popularity of a given new home community. “People pay attention to the builder’s profile and history in many areas, and they will ask the builder if there are any other neighborhoods they can drive by and check out, just to see how they have ‘seasoned,’ “ he adds. “They want to make sure that they are making good investment.”
Counseling Homebuyers . . .
Westbrook Homes, a leading Las Cruces area homebuilder, encourages its sales consultants to help homebuyers make decisions based on what is truly a good ‘fit’ for them, and not be too dazzled by emotion, even though it may be what gets them talking about a potential purchase. “We want our sales staff to personally walk people through both the model homes and our production homes to explain exactly what they will have included in their purchase and point out the quality we put into our homes,” says Chris Taylor, Owner and Executive President of Westbrook Homes. “It doesn’t matter how great a model home looks if they can’t picture themselves actually living in it, knowing the home’s potential for them personally and understanding some of the behind-the-walls features,” he says.
Translating bricks & mortar into reality . . .
The idea that emotion affects our decision to buy a new home is justifiably colored by its practical aspects, as described in the two earlier offerings of Westbrook’s “Why Buy New” series. Recognizing our need to sometimes permit emotion to play a role in such a big-ticket purchase, however, can help us understand how a structure can go from merely being a “house” on a home site and become that with which we can all identify – a place called home.
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