Why do people buy New Homes?
Many buyers today flock to newly built homes for several reasons:
1. They simply want NEW. New everything. This can include homes designed for today’s needs and demands, often with finishes, mechanicals, amenities, etc that don’t exist in most existing homes.
2. They don’t wish to undergo a renovation either due to lack of will, or know-how. Most know a renovation is rarely quick, cheap or easy. While an unrenovated home may be far ‘cheaper’, often after a renovation (including the cost of living somewhere while the renovation occurs) the final cost ends up being similar.
3. When you buy brand new, you can finance the entire purchase: property AND renovation (as no renovation is needed). This means you need less cash after closing and may allow you to put down more cash when buying, thereby bringing down monthly expenses/mortgage cost.
4. Every home needs repairs and maintenance over time. Brand new homes too, but often their systems being brand new mean fewer big-ticket repairs/maintenance costs.
5. New homes are built according to new building CODES…. often they are more energy efficient AND resilient. New codes often address the weaknesses of past building codes.
6. Many buyers have shifted their preference to a more modern aesthetic. No, most new buildings are not minimalist, but buyers today often like taller ceilings, bigger windows, open kitchens, bigger bathrooms, etc, the kind of things developers are installing into new homes. This can exist in a sleek all glass box, or a more traditional, even historic-appearing facade.
7. In a FOMO world, brand new can deliver instant gratification. And use. Time Is The Last Luxury.
8. Often hiring a big-name designer of an ultra-luxe building to do one home would be prohibitively expensive: this economy of scale can have real value to those seeking ultra-luxe design.
At COMPASS we have everything from single family starter homes to mansions, condos in 3-unit buildings and townhouses to massive, fully amenitized buildings with hotel services. At all price points, not just those ultra-luxe multi-million-dollar-productions.
Andrew.Oliver@Compass.com