Why new construction is the answer for move-up buyers

Key Insights

• With a lack of existing homes for sale, new construction offers attractive options for move-up buyers.
• You can select your ideal layout, fixtures, finishes and more.
• You may have more flexibility with your timeline.

The real estate market has been challenging for some buyers with a limited number of existing homes for sale. Luckily, new construction homes are on the rise in the Midwest and nationally and can be a great option, especially for those who are selling and hoping to move to a larger or right-sized home. Here are some insights to consider when thinking about moving forward with a new construction property.

1. You won’t have to worry about home inventory

For many homeowners who are hoping to sell and upgrade to a new home, the shortage of homes for sale is a primary concern. Across Minnesota and western Wisconsin, buyers are finding themselves competing over a limited number of homes for sale at almost every price point.

If you’re a would-be seller concerned about finding your next property in time for your move, new construction may be a great choice for you. Whether you’re looking to live in a condo in the lively North Loop, a townhome in Shakopee or a single-family home in Woodbury, you’ll likely find plenty of options to choose from if you expand your search to include new construction. Not sure where to look? Start your new construction search here.

2. You’ll be in control of the design

As a current homeowner, you know your property’s faults inside and out. You also likely know the exact features you want in your next home, and finding a home that matches your high expectations may be difficult in today’s low inventory market.

By purchasing new construction, you’ll be able to control everything from the room layout to the number of garage stalls to the temperature of your home’s floors when you wake up in the morning. When you build from the ground up, even your pipe dreams can become reality. Go ahead and put in the butler’s pantry or spa-like bathroom complete with a soaking tub (Just think how nice your toes will feel as you walk across your heated floor!).

Worried about the timeline? Many developers are also selling “spec” homes, or speculative homes. Because the new construction market is showing strength, some builders are building inventory homes in developments before they’ve been sold. That means buyers who choose spec homes can often move in faster than those who participate during the entire building process. Once the buyer signs on, the home may already have its foundation set and general layout finalized, but the buyer can customize the home’s design features to match their personal style. Dream up all the smart appliances, unique lighting fixtures and trending accent wall colors your heart desires to make it undoubtedly yours.

3. Move at your own pace

More and more, today’s home sellers are using the low inventory market as leverage when accepting offers on their current homes. Sellers may add reverse contingencies to the purchase agreement, or specify that the sale of the home is contingent on them finding a new home to buy. If you plan to sell your home and will be purchasing new construction, work with your REALTOR^® to add a reverse contingency to build in a safety cushion when it comes to the timing of your move.

Remember, a reverse contingency only works when the seller has a clear advantage, and not all homes will generate buyer competition. Together with your agent, you can determine the best strategy for asking for a delayed closing while still ensuring your home sells for top dollar.

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