What You Need to Know About Buying a Newly-Constructed Home

Christine Elias
14 minutes ago
3 min read

newly-built house with white siding | urbandogrealestate.com

If you’re looking to buy a house in the coming months, you may want to consider a newly-constructed home. At the start of 2025, the median price of new builds was down 0.7% from the same period in 2023. Additionally, the number of newly-constructed homes to hit the market increased significantly, with 1,020,600 homes listed for sale in 2024. The South is a particularly good spot for new-construction listings, with a higher share of available houses (23 percent) than other regions. (source)

Keeping these thoughts in mind, let’s consider the benefits and drawbacks of buying a new home.

First, let’s consider five benefits of buying a newly-constructed home.

1. You may be able to customize certain details.

Depending on when you sign the contract, you may be able to make some design decisions to suit your personal preferences. Oftentimes, homebuyers opt to make selections for flooring, paint colors, trim, countertops, cabinets, and appliances.

2. You won’t need to budget for repairs or renovations.

When you buy an older home, it’s smart to set aside money for immediate repairs or updates — issues that may not be noticed until after the purchase is finalized. With a new home, everything should be updated and working to your standards. Better yet, the appearance of your house — think walls, trim, floors, appliances, fixtures, and more — should be in pristine condition.

3. You can anticipate lower maintenance costs.

With a newly-constructed home, maintenance needs should be lower for at least the first few years. Every item in the home has a different life expectancy, allowing you to get the most out of your new build.

Even better, most new homes come with a warranty period. If you experience a crack in the foundation or a leak in the roof, your builder will cover the cost of the repair. Note that every county has its own rules on a new-home warranty. Check with your real estate agent for details on your coverage.

4. Your home will feature a more modern floor plan.

If you’ve ever house hunted, you know how daunting it can be to find an accessible floor plan in an older home. In a new home, you can count on a smart use of the space that features a mudroom, a walk-in pantry, larger closets, and/or more storage options

5. Your home will be up to code.

Building codes are in place for a reason: They reduce on-site deaths, costs, and damage by creating stronger properties that can withstand disasters. During construction, a new home has several inspections to ensure that it meets all local requirements. Codes can quickly change though, meaning you may have to pay to bring a previously-owned home up to code.

Now, let’s look at three drawbacks of buying a newly-built house.

1. It may cost more.

Chances are, new construction will have a higher list price than older homes in the same area. Plus, if you customize some of the features and opt for expensive finishes like marble countertops or European wallpaper, you’ll ultimately be paying more per square foot.

2. You may not be able to move in right away.

Not all newly-constructed homes are move-in ready. When you’re searching for a house, it’s important to keep your personal timeline as well as the builder’s plans in mind. Note that, generally speaking, it takes about six-and-a-half months to build a new house from start to finish.

3. Your new neighborhood may not be complete.

If you’re one of the first homebuyers in a new community, you may have to wait a bit for the other homes to be finished — meaning that you’ll be living in the midst of a construction project for at least a few years. The good news? When the other houses are done, there’s a strong chance that your home’s value will increase.

You should also know that landscaping may be sparse as the neighborhood remains under construction. It’ll take a few years for your own landscaping to fully mature, and it may be even longer for community areas to grow and fill in.