There is a common theme of new-age home buyers and renters. They want brand new or newly renovated homes and are willing to pay a premium for them, often a large premium. The large majority of buyers we are currently working with want turnkey homes that require little to no work upon closing. They want the newest of everything and most are willing to pay up to get it. Here is our list of 10 reasons this NEW has become an obsession.
1. Time is the Last Luxury: enjoying a home immediately is more meaningful to most. Waiting for a renovation or new build is time lost, for many buyers, it is not worth the wait. The time and effort spent on a home build/renovation project is time you can spend on your career making the money to pay for a home, or enjoy with friends and/or family.
2. In a rising interest rates environment locking into a rate has value. If rates continue to rise we will see even more aggressive buyers cashing these new builds.
3. When you buy a renovation project you need cash or additional financing to renovate. One financed lump sum is much easier to obtain.
4. With rising labor and materials costs, anticipated costs for renovation at closing are bound to rise. Most projects go over budget regardless.
5. Consumers want the least aggravation: older systems require more time, effort and money to service, maintain and replace.
6. New homes are usually much more energy-efficient than the 1907 home renovated in 2017!
7. New/renovated homes have been adjusted to today's lifestyle needs. They allow for more light and space to flow throughout.
8. When you buy one apartment in a 50-unit building by a top architect/interior designer there is the economy of scale at work. If you built that yourself you would pay much more for that quality of design for a single home project.
9. Decorating and furnishing is the fun part. Sorting through a complex permitting and approvals process is not nearly as much fun and time-consuming.
10. Seeing exactly what you're going to get is much easier than imagining what could be. Most buyers do not have the experience to handle a major renovation and typically do not even know where to begin!