Saving Money on the Purchase of a New Construction Home in central PA

Saving Money on the Purchase of a New Construction Home in central PAIf you were to purchase a brand new construction home in one of the great new impressive communities of Central Pennsylvania you might wonder if there are some ways to get costs on your home purchase down and save some money. The good news is that there are some ways that you can save money on your brand-new construction home purchase.

Saving on the cost of a brand-new construction home

There are many specs that contribute to the overall cost a person pays on a brand-new construction home in central Pennsylvania. One of the best ways to keep the costs low on a new construction home purchase is to not get caught up in finishing upgrades offered by the construction home builder.

Research shows that homeowners across the country spent an average of 13,667 extra dollars on upgrades in new construction homes in 2023. This amount increased from the year prior according to data shared by the State of Home Spending on the Angi website. Angie received this information for the survey by polling 6400 home consumers between October 2022 and October 2023.

Research from the survey showed that about 46% of homeowners used cash from a savings account to cover the cost of home renovations. 20% of homeowners used the help of a credit card and about 7% of homeowners refinanced existing loans. 5% of homeowners financed renovations through a home equity line of credit loan.

When it comes to seeing a new construction home it can be enticing to have everything installed in the home exactly as you want it and to pick out some upgrades so that your home is what you feel perfect. However, experts are advising homeowners to be conservative with their upgrade choices when having a new construction home built. Many real estate professionals are advising that new construction homebuyers plan to make upgrade renovations later in their homeownership rather than incur the expense when the home is built.

Asking about concessions and preferred lending

It can only be in a home buyer's best interest to check out if a builder is offering any incentives to home buyers in their planned communities. There are builders that will offer discounts and can even offer to help pay down a mortgage interest rate. Focusing on the structural integrity of the home and the mortgage loan are the most sound ways to purchase new construction homes currently.

The thing to be aware of when a builder offers a mortgage interest rate buy down is that you should still do your homework on what other lenders will offer. A homebuyer should always shop around for a mortgage. Research has found that the average homebuyer takes the first mortgage they are approved for instead of looking into more options. Research has also found that homebuyers who look into at least three different mortgage options save thousands of dollars. And a buyer who asks questions about saving money on fees and costs saves even more. 

Using the rate buy down from a homebuilder does mean working with a preferred lender that the construction company already has a relationship with. You want to ensure that you are receiving the best mortgage product and that the preferred lender provides the homebuyer excellent care and customer service. In some rare cases, a lender is more concerned with raking in the new loans and is not great to work with over the life of your loan. So do your homework on the lender and their customer service and ensure that you are receiving the best loan product possible. It could save you a considerable amount of money. 

Hire a Trustworthy Agent

Buyers can walk into a new construction community and tour the model home and be told or get the feeling that they don't need an agent to help them in the buying process. This is a big and common mistake. You want to make sure you have an expert professional solely working in your best interest. Having a real estate professional solely on your side means you have someone working for you and aware if there are any red flags in your new construction home purchase. They can help advise you on those extras builders often try to sell with the help of their agent. 

If you are looking for a home in Central PA, including areas like Carlisle and Mechanicsburg, I am here to help. Contact me any time with any central PA real estate needs. I would love to start your home-buying adventure as soon as possible and get you into a home you love. 

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