Deciding between buying or building a home in California, presents a complex choice, influenced by factors like the real estate market, costs, and personal preferences. For those considering the route of new construction, understanding the nuances of this option is essential. This involves weighing the pros and cons of new construction homes and building from scratch, including costs, customization opportunities, and the time and complexity of the process. This introductory article will explore these aspects, providing valuable insights for anyone navigating the Los Angeles housing market, whether buying an existing home or embarking on a new construction project.
Pros of New Construction
Let’s begin by looking into what benefits you can expect when you build a brand-new house of your own. We’ll look at the pros from the beginning of the new construction to its completion and your life inside your brand-new home.
Bespoke Design
One of the main reasons people prefer a new construction home is that it can be customized in so many ways, giving home buyers the exact specifications and installation they prefer. New construction has many options for modification, and you won’t have to go without any feature of a home you have set your eyes on.
Energy Efficiency
There is so much more focus on energy efficiency these days, and buyers will always prefer to move into a home that already boasts a good level of energy efficiency than moving into a place that requires investment in such areas. Energy-efficient features ensure a better-functioning home and lower utility bills.
Modern homes already offer great efficiency, and many new construction projects are bound by law to reach a certain level. When buying a new construction, you will also have the optional energy-efficient features that you can choose, such as solar panels, that will make them even more efficient.
Brand New Systems
The fundamental systems of a home, such as HVAC, heating, plumbing, electrics, and drainage, will be brand new when you buy a construction home. This is by far one of the most significant benefits of purchasing this type of construction over existing homes. Even with correct research, there are all manner of issues you could find in an existing home waiting to go wrong.
A new construction will have the best wiring in the electrics, the latest tech in the HVAC, and the most efficient insulation. Additionally, given that the latest approved construction materials will be used, you can forget about the risks related to mold, asbestos, or any other harmful substances that you may get in an existing home.
Increased Value
There is no guarantee that a new construction home will appreciate, yet figures have long suggested that these see a greater percentage increase over time than the sale of an existing home.
Cons of New Construction
Now that we have explored the benefits of a new construction home, let’s look into some disadvantages compared to purchasing an existing home. Remember that these disadvantages are to help weigh up what best works for you, with a clear mind, and against the backdrop of all of the pros that you will see when you go through the home-buying process.
A Time-Consuming Enedavor
If you plan on buying a new construction home, you will have to wait a lot longer before moving in than with a pre-existing property. Most new construction communities are marketed and sold before the ground is broken.
The current average wait time for a new home in California is seven months, which can cause issues if you need to sell your property before moving into the new build. For some, this means spending months in hotels or with family members as the build takes place. Depending on its size and level of customization, the construction process may take up to ten months.
Reselling A Customized Home
There is no doubt that new construction homes do appreciate more in value, but they aren’t always the easiest properties to sell. Customizing a new construction home means having the right flow, appliances, systems, and space for what you and your family require.
However, this may differ from what another family or buyer needs. This isn’t too common a problem, but it is worth considering when it comes to the personal touches that you want to make in the property’s design.
The Effort Involved
The idea of being able to customize a new construction home sounds appealing, but this can be a tiring process that you will need to be prepared for. Deciding on the space, layout, and building materials down to the last tap can be grueling.
Once you have gone through it, you will be glad to have done so. But make no mistake that you’re signing up for many lengthy conversations with the home builder for the duration of the build.
Range of Locations
California may be blessed with acres of beautiful land, but only so much of that will be available for your new construction home. This option could limit the range of locations that you have to choose from.
We are seeing a rise in new construction communities, with multiple new construction homes available, although these are still less spread out than existing properties.
Driving The Price Down
Even the hardest-selling real estate agent understands that they’ll need to provide some wiggle room for buyers who want a better price. Yet with a new construction home, this simply won’t be the case. You will have far more limited negotiating power here if any at all.
Usually, the home builder sets the price based on a straightforward calculation of building materials plus labor. This will restrict you from haggling on the list price and the cost of any upgrade you make, which will likely be set in stone.
If you’re looking to save money on the list pricing, a new construction home may not be the answer.
Is It Cheaper To Buy or Build A House in California?
While California is known as the second most cost-effective state for home building in the United States, generally buying an existing or older home will be cheaper than building from the ground up. Custom homes average over $500 per square foot, while tract homes are cheaper at $300 to $350 per square foot.
Building a custom home also involves additional costs like land, permits, and higher expenses for unique designs and high-quality finishes. Although prices vary widely, building lots in densely populated areas of the state like Los Angeles and Orange County are some of the most expensive on a per-acre basis.
How To Find A Builder
If you already have a plot of land for your new construction home, you’ll need a reputable and experienced builder. The same goes for anyone who already has plans to build new construction homes on a large plot.
Additionally, you will want a build team with great customer service and care about the details of your new construction home, which can often be a harder ask. The first step here will be to contact the local home builders’ association, which will provide you with specialists in this industry. Once you have a list, it is time to begin researching online, checking out the credentials of each and what reviews they have been given.
This will be a process whereby you can pick out 2 or 3 of the best-rated builders before calling them for a more detailed conversation about what you are looking for so that you will then be given a quote.
Here is a quick list of what you should ask any builder you think could take care of your new construction home.
- Do they offer a builder’s warranty?
- Can they provide references from previous clients?
- What is their credit status? An important question as the speed of building a new construction home will often be based on their ability to obtain credit ahead of the sale
What Build Method Can Do For You
As an experienced construction and remodeling company with over 25 years of expertise in the Los Angeles area, Build Method Construction is your ideal partner for new construction homes in California. We pride ourselves on a proven track record of excellence, demonstrated through our extensive portfolio and numerous satisfied clients. Our approach is rooted in professionalism, attention to detail, and a commitment to delivering high-quality results, ensuring that your journey to your dream home is smooth and successful.
Embarking on the process of building a new home, however, requires a realistic understanding of the timeline involved. The journey from conceptualization to completion – encompassing stages like finding an architect, designing the house, securing permits, and the actual construction – typically spans nine months to a year. This timeline underscores the importance of patience and careful planning in bringing your vision to life.
Moreover, navigating the complexities of the Californian property market and construction landscape is a task that demands expertise. Partnering with a top real estate agent who is deeply knowledgeable about the local market is crucial. They can assist in locating the right property, streamlining the process, and mitigating potential challenges.
In summary, at Build Method Construction, we are not just builders; we are partners in realizing your aspirations for a new home. With our rich experience and comprehensive support, coupled with the guidance of a skilled real estate agent, you can embark on this exciting journey with confidence and clarity, knowing that your dream home in California is within reach.
