If you’ve been ignoring newly built homes, you might be relying on old ideas. Let’s clear up some common myths. This way, you won’t miss a great chance, especially in places like Chicago, Illinois.
Myth 1: New Homes Are More Expensive
New homes often seem pricier than older ones, but that’s not always the case, especially now.
Data from the Census and the National Association of Realtors (NAR) shows that the median price of a new home is lower than that of an existing home.
So, why’s this happening? As Heather Long, Chief Economist at Navy Federal Credit Union, explains:
“This largely reflects two trends: New homes are getting smaller on average, and builders are doing more price cuts.”
If you’ve ruled out new construction based on price alone, it’s time to take another look. Talk to your local real estate agent to see what’s available (and at what price points).
Reconsider new construction if costs have held you back. This is especially true for homes near Chicago or its suburbs.
Learn more about this trend in our blog: Newly Built Homes May Be Less Expensive Than You Expect
Myth 2: Builders Don’t Negotiate
Many buyers assume builders aren’t going to play ball when it comes time to negotiate. But that’s not the case.
Many builders are sitting on finished inventory that they want to sell quickly. And that makes them more open to compromising.
Mark Fleming, Chief Economist at First American, explains a builder:
“. . . would love to sell you the home because they’re not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown . . .”
Builders might be more flexible than individual sellers. They often offer incentives to close the deal.
According to Zonda, 75% of new home communities offered incentives on quick move-ins in June. This is great news for buyers, especially in competitive cities like Chicago, where homes are hard to find.
Want more clarity on how today’s market works? Check out this quick video breakdown on housing myths.
Myth 3: They Don’t Build Them Like They Used To
Some people think newer homes lack the craftsmanship of older ones. But here’s a reality check. Quality depends on the builder—not the year it was built.
The National Association of Home Builders (NAHB) suggests talking to recent buyers. This helps you understand a builder’s reputation better. If a builder can’t provide references, that’s a red flag.
In an article, NAHB explains:
“Any high-quality builder should be ready to provide you with the names and phone numbers of satisfied customers. If they cannot, consider that a red flag and walk away.”
The article suggests asking those buyers questions like:
- Did the builder meet their expectations?
- Would you use that same builder if you were to do it again?
Many real estate agents in your area know which builders are reliable and which to skip.
Still wondering what myths might be holding you back? Read Today’s Biggest Housing Market Myths for more insight.
Myth 4: You Don’t Need Your Real Estate Agent
This is one of the biggest myths about buying newly built homes.
Builder contracts come with unique terms. Without your agent, you might miss important details. A Realtor.com survey found that buyers thought their agents were more helpful than the builder’s rep during the process.
A trusted agent can help you:
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Review the contract
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Understand builder incentives
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Navigate the closing process
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Find multifamily homes or condos in new communities
Wondering, “Is a condo a good investment?” or “Should I buy new or old?” — your agent can walk you through it all.
These stats seem to prove that’s the case.
In a Realtor.com survey, buyers of newly built homes found their agents much more helpful than the builder or the builder’s rep. (See visual below.)
Still not sure if working with an agent matters? Start here: Don’t Fall for Real Estate Agent Myths.
Your agent can help you with tricky topics, like how much down payment you need. They can also clear up the 20% down payment myth.
Looking at Newly Built Homes in Chicago? Let’s Talk
Now is the perfect time to check out newly built homes. You’ll find modern features, builder incentives, and fewer repairs to worry about.
Looking for homes? Interested in a wise multifamily investment? Want to keep up with housing market trends? Don’t let myths stop you.
Let’s connect and explore what they are building nearby — you might be surprised by what awaits you.
