5 Reasons to buy new construction homes that our clients have sited are listed below. Weigh the benefits when buying a brand new home compared to a resale home, and you decide. In Las Vegas, when buying new construction homes, the builder pays for you to have buyer representation. Always use a Realtor!
With about 200 brand-new home subdivisions in the Las Vegas Valley, there are over 750 floorplans to choose from. Below are the 5 most frequent reasons that I see as to why many of my clients chose to buy new construction homes.
I’m often asked:
“Why Should I Look At or Buy New Construction Homes For More Money Compared To A Resale Home That Costs Less?”
When you calculate energy savings each month, and lack of repairs and remodeling time, the costs balance. However, the cost per square foot of new vs. resale in Las Vegas is getting closer. Of course, resale houses are often a logical choice for a thousand reasons. Everyone’s situation is different, as well as which lifestyle they want.
#1-Technology
The amount of technology and connectivity that goes into a home these days is simply amazing. Much of the technology in a brand new home would be difficult and expensive to put into an existing house. Sometimes it might even be impossible. Consequently, that is a huge reason to purchase a brand new home. Many builders install standard packages, and others have Smart Home Options.
You have the ability to incorporate and customize the latest in smart home technology, from security to theater sound. As you drive to your house on a hot summer day, you can turn on the A/C or spa from your phone.
In addition, new houses typically have the highest internet speeds available. This is because the cabling is the latest in fiber optics. As more and more devices connect to the internet in your house, internet speed and bandwidth become important items to consider.
#2-Customize Anything
The choices offered to you to customize your home’s interior are incredible. Moving walls are a newer option that older houses don’t have. Do you want a full bath downstairs or a double-door office entrance? Maybe you want a door to the backyard from the master bedroom?
French doors or sliding doors are something you can decide. Do you want high ceilings or lower ones? A double shower or a bathtub? And kitchens have a hundred choices, from cabinets to countertops to appliances. When you buy new construction, you can have everything exactly as you want.
The pride of owning a brand new house that you customized is huge. Hours are spent discussing and choosing new construction options and upgrades. It’s amazing how many design choices are offered- and how nice they are.
If you ever thought, “I wish I had a TV outlet on my patio” or “I wish there was a plug for Christmas Lights with a light switch at the door,” you can have it. You get to have everything that fits your lifestyle.
#3-Energy Efficient Home Features
New construction houses in 2021-2022 are built with fabulous energy-saving features. Being kind to the planet equates to saving money on utility bills as you add to your comfort. In a climate with extreme weather, the savings can be considerable.
Houses have special ratings by environmental agencies “Energy Star” and “LEEDS..” At a minimum, houses are built with new technology energy-efficient features. These include features like AC/Heat balanced systems, Low-E2 windows, and radiant barriers.
With Low-E windows, a special glaze is put on one side of the window. This glaze blocks the sun’s heat from coming in during summer and it blocks heat going out in winter. A “radiant barrier” is nearly impossible to retrofit an existing home.
Radiant barriers block the sun’s heat from ever entering the attic. In Nevada, with 310+ sunny days a year, energy efficiency makes a big difference.
Modern energy-saving features in new houses are a big reason you want to have your new house professionally inspected. We gift all our clients a new home inspection because it is so important. See our article on New Construction Inspections.
#4-Extended Structural Warranty
Just like with a used car, an existing home most often does not come with any warranty unless you buy one, and even then, they are limited. When buying a new construction home, you’ll get a “bumper to bumper” or door-to-door warranty for a year.
Appliances and other systems may be covered for two years. Most builders offer a 7-10 year structural warranty offering you further assurances. Warranties give brand new construction home buyers peace of mind.
#5-Recreation Nearby
Another nice thing about buying a new construction house in 2021-2022, is the recreational opportunities offered close to home. Most Brand New Construction Homes across the country, are built in Master-Planned Communities. Master-planned communities are often built with walking and bike trails, sports parks, recreational facilities, and state-of-the-art community centers.
Additionally, the Las Vegas Valley is surrounded by fabulous nature conservation and recreation areas. In any city, the oldest homes are towards the center, with development going out from there. Consequently, most new home communities are on the edges of the city possibly with wide-open spaces beyond.
Buying New Construction vs. Buying Resale Homes
In Las Vegas, many brand new homes are near or in the mountains. Being along the outside of the valley means that your new house can be near one of our 5 great recreational wonders around the city.
Red Rock Canyon, Mt. Charleston, Sloan Canyon, the Sheep Mountains, and Lake Mead are North, east, south, and west. Preserved nature sites provide many recreational opportunities for our community. For those who like to enjoy outdoor adventures, a new home is ideal.
Nevada Property Tax – Nevada’s new home property tax is approx. 1% of the sales price. About 10 years ago, the Nevada state legislature revamped the property tax rates. From that point on, taxes could only go up 3% a year for owner-occupied property and 6% for an investment property.
In the resale market, when a property sells, the tax rate does not change for the new owner. Thus, taxes will be less for a resale home, sometimes thousands of dollars less. With double-digit appreciation and only a 3% tax increase, new home taxes are higher.
Remember, when you buy a brand new construction home as your dream home, it is still an investment. Try not to “over-upgrade.” When your house is complete, you’ll move into your house loving it, and not settling for someone else’s taste. Enjoy the experience because it can be great fun!
Always Buy New Construction Homes with a Realtor
New Construction Builders in most cities, pay for you to have Buyer Representation. In Las Vegas, over 95% of new home builders want you to have your own representation. The price of the house doesn’t change for you whether you buy with a Realtor or without. Get one!
Hopefully, the Realtor you choose will have construction expertise and can be more than a tour guide. The home buying process and builder contracts are not designed for the homebuyer’s protection. Get an offensive and defensive coordinator on your team.
Look at both brand new houses and similar resale houses. Compare the pros and cons. In Las Vegas, homes cost less in the resale market and often have window coverings and backyards. We want you to see the difference to compare for yourself.
Builders Pay For Your Realtor
Location may make a difference to you too. Plan to spend at least an hour comparing new construction vs. resale houses when we first look at houses together. The new home floorplan you like may be available in a 1-year-old resale home. Stay open to possibilities.
When looking to buy new construction homes, you’ll want to look at prices about 10% less than your loan approval amount. this is because builders have fabulous upgrades and only simple basic features. You’ll want to upgrade.
We have NEVER sold a house without something upgraded. The average amount of money spent upgrading a new construction house is 10%. Remember, after looking to buy new construction homes, you’ve seen gorgeous model homes and a basic house is not your visualization. Yes, builders use psychology.
New Construction Builder Tips
Once you choose to build a home, check out the builder IN YOUR AREA with the Better Business Bureau. Builders are like every business – New Mexico’s construction crew will be different from Southern California’s within the same company.
Many builders now have a mortgage financing division. Mortgage lenders are following guidelines set by Fannie Mae BUT interest rates are where you can save a lot of money each month. Shop interest rates – a $10,000 builder incentive may not be enough.
The home buying process and building process can take longer in 2021-2022. There may be bidding wars and wait lists. There are supply shortages. Choosing to build a house if you have a 1031 exchange time deadline, may not be a good choice.
Do not forget that model home sales agents work for the builder. Even though they are nice and friendly, they are not on your team. There are there only to facilitate the home purchase.
We Sell Las Vegas, Henderson, and North Las Vegas.
Make a Housing Consultation Appointment With Us Today
I’ve seen many new and resale homes as a Top-Producing 25+ year Las Vegas Realtor and a Former Nevada Building Engineer – a PE, CE. Because of my new home construction experience, I know you need someone on your team to protect your investment. I monitor home construction every week for my clients.
My building knowledge and real estate expertise make me a unique real estate agent – and my services are free to you! If you are in another city, try to find a Realtor who can protect you! Search for an engineer or a former contractor who is also a Realtor and can actually help you to buy new construction homes and also resale. You’ll be glad you did!
This Blog Was Written By:
Kurt Grosse with Realty One Group in Las Vegas. With how quickly homes are built in Southern Nevada, his services can be invaluable. If you or someone you know is thinking about a new home in Las Vegas, schedule a housing consultation with him today at 702-750-7599.
