Why Buy New?

During an educational seminar at the 2012 International Builders’ Show in Orlando, Jay McKenzie, vice president of Builder Digital Experience, LLC, offered a number of advantages of purchasing a brand new home, and hidden costs of foreclosed homes that buyers need to consider:
Peace of Mind
Many foreclosures are sold “as is” with no disclosure requirements. You could be surprised with major repair bills for issues such as foundation faults or other structural defects, mold, hidden water damage, unsafe wiring, rodent infestations and more. A foreclosed home that appears to have been renovated may not have been done so with the proper permits and inspections. A brand new home provides peace of mind for your family’s safety because it has passed inspections and conforms to current building codes. A new home is also under warranty and any issues that arise during the warranty term will be fixed at no cost to the home owner.
Personalized
New homes can be personalized with appliances, cabinets, counter tops, carpets, floor coverings, paint color and other design elements to meet your family’s needs and tastes. They also come designed for modern lifestyles, with open space floor plans, walk-in closets, creative storage solutions and conveniently-located laundry facilities. With a foreclosure, you’ll have to spend time and money to knock out walls, re-paint, and make other renovations to change the previous owner’s tastes to your own.
Efficiency
Newly built homes are highly energy-efficient, saving the buyer money and helping the environment. New windows, doors and insulation better control the home’s interior climate, and Energy Star-rated appliances and other modern components will help save costs on utility bills. With a foreclosure, if the appliances, water heater or HVAC are in working order, depending on their age, they may not be for long. And they certainly aren’t as energy-efficient as new ones.
Automation
New homes come outfitted with the latest home automation and wiring components that provide state-of-the-art technology capabilities to accommodate modern home appliances and entertainment resources such as high-definition televisions, full-house sound systems, hard-wired fire and security alarms and more. Foreclosures probably don’t have updated wiring, and old wiring not only may not be able to handle modern resources—it may be unsafe and a fire hazard, and will cost a lot to update to current standards.
Financing
Financing a new home is easier than financing a foreclosed home. Many builders offer incentives to reduce closing costs and can complete the closing quickly, unlike banks that just want to get foreclosed homes off their books and may have a backlog of homes to process, which can take months or years.