According to the Denver Post, Denver’s population has increased by 21% over the last decade. With a robust job market and coveted quality of life, the real estate market becomes more competitive with each passing year. There simply aren’t enough existing homes to support this constant influx of migrants. In order to meet such high demand, contractors and developers are also arriving in droves. Many new construction opportunities now litter the Denver suburban landscape.
Problem solved right? Maybe not. There are some important considerations to make when comparing the purchase of a new home to the purchase of an existing home. With information from our friends at ReColorado, we want to explore some of these nuances and help you avoid some pitfalls of the decision-making process.
Customization
One desirable quality of a purchasing a new home might be the opportunity to select finishes and materials particular to your personal taste. Keep in mind however, if you aren’t building the home yourself and managing its construction, the scope of your input may be limited. There is also always the possibility of decision-fatigue. Some homeowners may enjoy being able to make small, steady changes to an existing structure as time, energy, and budget allow as opposed to picking it all at once. Both processes can be arduous and depend heavily on the type of experience you are looking for in home ownership.
Price
You can assume that a newly constructed home will cost more money up front. It can be argued however that much of that initial investment is offset by the fact that renovation and repair costs should be minimal if not nonexistent for the first few years at least. But, there is no guarantee. You and your realtor should require proof paperwork of installments, inspections, warranties, permits, etc. It can be especially important in this regard to have a professional ally on your side. Just because something is new does not necessarily mean that it is immune to faulty installation or other complications.
Product
Heavily tied to price is the product you will be receiving. With new builds, there are no hand-me-downs. So long as you are diligent in purchasing negotiations and inspections, you should be getting brand new everything. No clogged drains, dated wallpaper, creaky floors, dusty HVAC vents, etc. In addition, the home should be equipped with much of the latest home technology and design, ideally making it more energy efficient and electronically “smarter” than an older home. No knocking down walls for an open floor plan or building out master closets. New homes are usually on-trend and cater to a modern lifestyle.
Location
This is a big one. A home’s location is typically one of a homeowner’s top three deciding factors when shopping for homes. New homes tend to be in more suburban areas which can narrow the options considerably. However, in light of Denver’s rapid growth, many of its suburbs are also experiencing rapid growth. In fact, the expansion of the light rail in addition to other suburban development projects have the made the city and its surrounding neighborhoods more connected and navigable than ever.
Still, if you’re hoping to buy new, it’s likely you won’t find yourself downtown or even within a ten-minute drive of the city center. That’s not to say they don’t exist. There is plenty of new urban construction happening but typically these are multi-family homes, usually townhomes or apartments that are smaller and have less yard space if any at all. A popular option for first-time homebuyers, couples, and new families, but not always well-equipped for growing families. It just depends on your personal wants and needs.
As with all of these considerations and actually any real estate decision in general, all that really matters is what makes sense for you. Having Corken + Company by your side ensures you have an advocate with your best interest at heart. Our experienced team of diverse specialties guarantees real estate solutions without limits. If you’re considering buying or investing let’s discuss your needs, thoroughly explore your best options, and diligently negotiate to arrive at the most desirable outcome, new build or not. Browse our selection of new and resell homes here. We look forward to working with you!
