Do New Construction Homes Hold Their Value?

New home construction is a growing trend in today's housing market. More and more people are opting to build their dream home rather than buy an existing one. The opportunity to build a custom home tailored to your specific needs and wants is an appealing option for many homebuyers. In addition, new construction homes are often more energy-efficient than older homes, saving you money on utility bills.

But there's one aspect of purchasing a home that many people don't consider – resale value. Just because a home is new doesn't mean it will automatically hold its value or appreciate over time.

So, the question remains – do new construction homes hold their value?

To answer this, we will take a closer look at the factors that affect resale value, as well as some tips on how to ensure your new construction home retains its value down the road.

Article Outline:

1. What Factors Affects Resale Value?

2. What can Reduce the Resale Value of Your Home?

3. Should You Build or Buy?

Let's get started by looking at some factors that affect a home's resale value.

What Factors Affects Resale Value?

Resale value isn't at the top of most buyers' lists when considering purchasing a new construction home. But it's essential to think about how your home will fare when you eventually go to sell. There are several factors that can affect the resale value of your new construction home. Here are a few of the most important ones to consider:

1. Location

One of the first things you should think about when determining the resale value of your new construction home is location. The location of your home will play a big role in how easy it is to sell, as well as the price you'll be able to get for it. If you're building a new home in an up-and-coming neighborhood, the resale value is likely to be higher than if you build in an already well-established area.

However, just because you build in an older neighborhood doesn't mean your home's resale value will suffer. In fact, many buyers are willing to pay a premium for a new construction home in an established area they love! This is because buyers are always looking for homes in desirable locations. 

So, if your home is located in an area that's becoming increasingly popular, it will be easier to sell, and you'll be able to get a higher price for it.

2. Size and layout

Another vital factor to consider is the size and layout of your home. Buyers are looking for homes that are a good size – not too big and not too small. In addition, they want a home that has a functional layout.

If your new construction home is a perfect size and has a layout conducive to how people live today, it will be much easier to sell than a home that's too small or outdated. For example, many buyers today are looking for open concept floor plans. If your new construction home has this type of layout, it will be more appealing to potential buyers and, therefore, more likely to sell at a higher price.

Some buyers are looking to build a home that is better suited to their physical needs as they age. If you have a home with features like wider doorways and hallways, or a first-floor master bedroom, it will be more appealing to these types of buyers and easier to sell.

3. Age

Obviously, the age of your home is going to play a big role in its resale value. A brand-new home is going to have a higher resale value than a home that's ten years old. This is because buyers are always looking for homes that are move-in ready and don't need any work. If your home is brand new, it will fit these criteria and be more appealing to potential buyers.

It's a bit like buying a new car. A new car is always going to be worth more than a used car, even if the used car is only a few years old – but that doesn't mean you won't be able to sell the used car! The same is true for homes. Even if your home is a few years old, it will still have a higher resale value than an older home that's in need of repair or updating.

4. Curb appeal

Curb appeal is essential for any type of home, but it's significant for new construction homes. This is because buyers are often willing to pay more for a home that looks nice from the outside. If your new construction home has great curb appeal, it will be more attractive to potential buyers. This can play into the decisions you make should you need to resell your home in the future.

Some things that can add curb appeal to your new construction home include:

• Landscaping: A well-landscaped yard will make your home more inviting and increase curb appeal.

• Outdoor living spaces: Adding a deck, patio, or porch will give your home an added element of appeal.

• Curb appeal upgrades: Small upgrades like painting the front door or adding a new mailbox can make a big difference in curb appeal.

5. Upgrades and finishes

The upgrades and finishes you choose for your new construction home will also play a role in its resale value. Some buyers are looking for a move-in-ready home that doesn't need any work. Other buyers are looking for a home on which they can put their personal touch. Choose upgrades and finishes that will appeal to this type of buyer, and you'll be more likely to sell your home at a higher price.

6. Repairs and maintenance

One of the biggest benefits of owning a new construction home is that you won't have to worry about repairs and maintenance for many years. This can save you a lot of money over time and increase the resale value of your home. If you need to make repairs or do regular maintenance, keep up with it. This will show potential buyers that you've taken good care of your home, and they'll be more likely to make an offer.

What can Reduce the Resale Value of Your New Construction Home?

Are you wondering what may play into a lower resale value for your new construction home? While there are obvious reasons that a home may not sell for as much as you'd like – such as a down market or a bad location – other factors can play into it as well.

1. The builders didn't deliver on quality

Poor workmanship is one of the biggest reasons why new construction homes don't hold their value. If builders poorly built your home, it will be more challenging to sell in the future. Be sure to do your research when you're choosing a builder for your new construction home. Read online reviews, talk to friends and family, and visit model homes to get an idea of the quality of workmanship you can expect.

2. The home's location turns sour

The location of your home is one of the most critical factors in its resale value. If you buy a new construction home in a desirable neighborhood, it will be easier to sell in the future. But if the neighborhood goes downhill or becomes less desirable for some reason, it will be more difficult to sell your home. This is something to keep in mind when you're choosing the location for your new construction home.

3. The style of the home goes out of fashion

The style of your home can also affect its resale value. If you choose a trendy style for your new construction home, it may be more difficult to sell in the future when that style is no longer in fashion. It's best to choose a classic style for your new construction home that will stand the test of time. This way, you won't have to worry about it going out of style, and you'll be more likely to get your asking price when you sell.

Should I Buy or Build a New Home?

As you can see, the resale factor of a new construction home depends on a number of factors. When you're deciding whether or not to buy or build, be sure to keep these factors in mind.

If you're looking for a home that will appreciate in value and be easy to sell in the future, a new construction home may be the right choice for you. Just be sure to do your research and choose a reputable builder to avoid any problems down the road. If you're not as concerned about resale value but want the freedom to customize your home exactly how you want it, then building may be the better option for you.

Focus on your home's location, style, and quality to ensure that it will hold its value over time. With a little bit of planning, you can be sure that your new construction home will appreciate in value and be a wise investment for the future.

Find Your Next Dream Home with Llano Real Estate Group, the Premier Home Builder in Amarillo.

If you’re considering building a new home in Amarillo, the Llano Real Estate Group can help you find the perfect lot and builder for your needs. We specialize in new construction homes in the area and can help you every step of the way, from finding the perfect location to building your dream home.  We even have model home builds ready for you to view so that you can get an idea of the quality of workmanship you can expect.

When you're ready to start your new construction home project, contact us at Llano Real Estate Group. We'll be happy to answer any of your questions and help you get started on the path to your dream home!