Wow, the New Construction Housing Activity in Lakeville Minnesota is soaring.
Lots have been selling fast this past Spring and Spec homes are selling even faster! This is such a great indicator for our local, Lakeville Real Estate Market. The increased sales of new homes means buyers have confidence in the future of Lakeville MN Home Values, they are even willing to purchase a premium product.
New Construction homes always have great appeal to Home Buyers. There are several reasons for buyers to select new construction homes over a similar re-sale home. The most common reasons include:
Fresh, Trendy, Style: Many young buyers appreciate the modern styles they find in New Construction. Usually trends in home styles start in the New Construction branch and eventually, homeowners begin to remodel their current homes, borrowing the ideas they have seen in New Construction. We shouldn’t forget the appeal of that ‘New Home Smell’, I know lots of people love knowing they are the first ones to live on that carpet.
Less Maintenance Needed: Today’s homebuyers are busy and prefer to spend their available time pursuing fun with their family, not painting the window trim of a 40 year old home! New Construction homes are designed from top to bottom to be easy to maintain. Virtually all Exterior surfaces are Vinyl, Brick, Stone, or Hardie Board Siding, windows are Vinyl or Aluminum clad, builders are installing sump pumps, radon mitigation systems, home ventilation systems and more.
Lower Cost to Own: These two things are tied together in a way. Homeowners of New Construction rarely face unexpected costs of replacement since everything is new and most items are under warranty. We have all heard the horror stories about buying a home and having to replace the furnace, AC, dishwasher, roof, water heater etc. in a short amount of time.
Higher Appreciation Rates: Part of a home’s value is based on its overall Condition. Since a brand new home is in the best condition possible, the rate of appreciation in the first 7 years is the highest the home will ever experience. The home will continue to appreciate into the future, but the Rate of Appreciation is highest in those first 7 years.
Why first 7 years? The theory is, a home ages in 7 year cycles, it seems to be quite true. In the first 7 years you don’t have to do anything to your new home. Year 7 usually bring some repairs or replacements such as landscaping, new paint, replacing carpeting, and maybe repairing a dishwasher, water heater or other occasional item. Years 14+ usually means replacing a few mechanical items like water softeners, washer/dryer, some cracked concrete, old bushes to replace, and more decorating updates. In the 21+ years, a home is likely to need large items replaced such as Roof, Furnace, AC, Windows, Siding, etc. The good news is that modern construction techniques have stretched this cycle out considerably. Many homes built recently won’t need siding or window replacement for 40+ years.
Right now, the modern styles include Mixing Light and Dark Woods, Mixing White Trim with Wood Floors or Cabinets, Flex Rooms, Mounted Flat Screen TVs, Oil Rubbed Bronze light fixtures, Wall Colors in visible Beige and Tan tones, Staggered Bath Cabinetry or Individual Vanities, High Quality Laminate Flooring, Smaller Spaces with Higher Quality Details and more Built-ins!
For a quick tour of the New Construction buying opportunities, read my related post, “How to Buy a New Home in Lakeville MN”.
As always, if you have questions please don’t hesitate to ask! We are happy to hear from you and happy to help.