Pre-Construction Housing Means Value For You

If you are in the market for a new home, a pre-construction home could be a wise decision on your part. New construction is ideal as you get a certain amount of input before the home is built, even in a development where most homes are pretty much the same. There is another factor where a pre-construction purchase makes sense: the home's rising market value. Read on and we'll examine the wisdom of getting of purchasing a not yet constructed home.

New developments have an appeal for homeowners for two reasons:

You get a big say in how the house will be built. You pick style and you add in the amenities that you want or remove those that have no use to you. If you think down the road to when you might eventually sell your home, putting in sought after amenities like an extra full bath or a screened in porch can add value to your home.

You buy now and reap price gains later. In some sought after developments, home prices surge between the time the contract is signed for the house and when it is first occupied. You still get the home for the lower price, but already you could see double digit gains in value before moving in.

Of course, capitalizing on pre-construction deals involves you doing some homework first. You need to determine if:

The development is located in an area of great demand. Location, location, location!

The development is located where schools, shopping, work, and other places are nearby. Add extra value to the development if you can walk to a school or to shopping.

The home that you select is desirable and the amenities add value over the long run.

Certainly, if you home features these attributes then you stand to profit in the long run.

Some real estate professionals suggest you buy when the first stage of development is underway. Usually, developers will set aside two or three building stages before completely the community. If you get in on the first stage, you will notice that the second stage homes of equal size and style will sell for a higher price. By the third stage, that price is higher still. So, by the time the development has been completed, you could see your home's value increase by 20% or more all because you had the foresight to jump in right away.