Is New Construction an Option?
How new construction in a supply-constrained market may be the more economical choice.
If you’ve been looking to buy a home in the Dane County area, you’ve probably seen first-hand just how competitive the market is. Why? There is a very low inventory of houses for sale right now, creating fast and competitive bidding wars with multiple offers, potentially driving up the price higher than you feel comfortable. Before you know it, that price can creep higher than what it would cost for a new home. So what should you do? Many are turning to new construction.
New build homes are often designed with contemporary living in mind. You won’t have to deal with the quirks and outdated layouts that can come with older homes. They also tend to be more energy-efficient, which is great for both the environment and your budget, long-term. Even homes built within the last 20 years may have original HVAC systems that are much less efficient or not up to today’s standard.
Another key benefit to new construction, is the ability to personalize your space. Many new construction projects offer opportunities for you to have a say in the interior design, including paint colors, fixtures, and even minor layout adjustments if the construction is ongoing. This is especially appealing for those who want a home that reflects their unique style and practical needs.
Even in today’s market, buying a buildable lot is typically less competitive than buying a single family home. The price is usually straight forward – without the bidding war to worry about.
The down side? Buying a lot and building a new home can take time, typically around 9 months to a year from start to finish. If you are ready to move tomorrow, new construction can feel like a big undertaking. Waiting for construction to be completed can test your patience, but the reward is a home that’s not only tailored to your style and preferences, but also is higher quality than purchasing an older home, with modern efficiencies and technology.
If construction isn’t what you have in mind, let’s consider existing homes. Madison boasts a variety of charming older properties in well-established neighborhoods, but they come with their own set of challenges. As mentioned previously, a competitive housing market can drive up the sale price of a home, putting you over what it may cost to build. That charming old house might need a new roof or other major appliance repairs or replacements. However, if you’re up for the challenge and appreciate the character, history, and unique stories these homes can offer, you might uncover a hidden gem that truly speaks to you. If having a big yard in a suburban community is an important selling point for you, you will definitely have better luck finding larger lots in older communities. Ultimately, the decision comes down to what you look for in a home and how you prioritize those “must have” features.
Want to learn more about new construction homes in the Madison area? There are plenty of options and T.R. McKenzie can help walk you through the process. Building a home typically requires a different financing plan and having an expert in both real estate and new home construction, will help you through the process. Need a place to rent while your home is being built? T.R. McKenzie can help you out there as well, with 12 apartment communities located throughout Madison..
*Information provided by public record, SCWMLS Data, & Development Websites
Frequently Asked Questions for Building a House
What are some of the main differences/strengths & weaknesses between local builders?
What is a logical first step, design the house or choose the lot?
How many decisions do you want to make in the build processes?
What are your best options for construction financing?
Helping buyers navigate these type of questions is what we are here for. Contact us at the link below and we will follow up to help walk you through the processes, answer all your questions, and steer you towards your goals.
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