Many people build a home to get the exact layout and finishes they want. But at what cost? Is building a new home a good investment?
Lower Home Ownership Costs
Bill Clark Homes began building in 1977, and we can tell you first-hand that new home construction has changed. Throughout the industry, the materials and products have evolved significantly.
For instance, insulation has become much more effective at keeping homes cool in the summer and warm in the winter. If you purchase a used home (even one a decade old!), its insulation will not perform at the same level as newer products. In a new house, you will likely pay far less from month to month in energy bills. Many of the newer materials used in houses also require far less maintenance down the road.
Newer building codes and standards have also changed to create safer and more energy-efficient homes. Older homes often lack more modern safety features, such as fire extinguishers or carbon monoxide detectors
When you buy a home, the price you pay is the value of the home on the purchase date. However, that value is likely to increase over time, so if you choose to sell your home down the road, you will likely receive more than you originally paid. In other words, you will receive a return on investment. Of course, this can occur with any home. Why is a new home a particularly good investment?
According to JD Terry, VP of Mortgage Lending at Guaranteed Rate, “I would say one of the main reasons is that when you buy a new construction home you will typically see anywhere between 2-4% appreciation in the value from the sales price you locked into to once the build is complete! We call this instant equity and it comes when the buyer puts the key into their new door after closing! Most resales are going to be priced at the market, or you may have to go over asking price in the market we are in right now. With the new construction, you have the benefit of locking in a price upfront and reaping the benefit of equity growth while your new house is being built. Therefore you are buying a house at ‘last year’s price’ but getting ‘this year’s value’!”
Preferred Lender Incentives
When you buy a new home with Bill Clark Homes, you can even secure additional benefits and savings by working with the preferred lender for our Wilmington-area homes, Guaranteed Rate. Here are a few of the perks you can expect:
- Exclusive incentives: Use Guaranteed Rate to purchase a new Bill Clark home in Wilmington, and receive a 1% credit of the loan amount that can be used to offset closing costs or buy down the interest rate. Depending on the day, you could get up to a 0.25% savings on the rate!
- Secure the lowest rate possible: Guaranteed Rate offers extended lock programs that allow you to lock in rates for up to 9 months while your Wilmington dream home is being built. Plus, you have a one-time free float down if a better rate becomes available within 25 days of closing!
- No escrow holdbacks: Working with Guaranteed Rate, you can close on your new construction loan prior to the completion of certain improvements to your Wilmington-area home. Contact JD Terry for more information.
For more information on the benefits of buying a new construction home, contact a sales agent in your area today. We’re happy to answer any questions and help you along the path to owning a new Bill Clark home.
Incentives are exclusive to buyers of homes in Bill Clark Homes’ Wilmington Division.
Applicant subject to credit and underwriting approval. Savings, if any, vary based on consumer’s credit profile, interest rate availability, and other factors. JD Terry NMLSID: 455169 Guaranteed Rate NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org)