Real Estate In Tennessee

Residential New Construction

Many of us dream of building the perfect new home, however the challenges of the process might intimidate some. Given the supply and demand environment, building today, might be an alternative option.

There are many factors that determine a housing market. Housing inventory, demand, interest rates, location, rental demand, corporate growth, work/life balance and more. The COVID pandemic put a number of stressors on the housing markets. In short a lot of people where selling and buying for different reasons and all that shifting had direct effects on the availability of homes. The availability had measurable impacts on home costs. Post-pandemic there are still factors effecting housing availability and cost. Those factors are continuing to have measurable impacts on costs. One path to side-step some of those factors is to build a new home.

As of 2021, the percentage of new homes construction versus existing homes was about 15% (depending on location). As with any major project, there are pros and cons to building a new custom home.

Here are some of the advantages of building a new custom home:

• You can get exactly what you want: When you build a new custom home, you have the freedom to choose the floor plan, the materials, the finishes, and the features. You can also choose the location of your home, which can be important if you have specific needs or preferences.
• New homes are typically more energy-efficient: New homes are built to the latest building codes, which means they are more energy-efficient than older homes. This can save you money on your energy bills in the long run.
• New homes have fewer maintenance issues: New homes are less likely to have maintenance issues than older homes. This is because they are built with newer materials and construction techniques.
• New homes have a warranty: Most new homes come with a warranty, which can protect you from unexpected repairs.

Here are some of the disadvantages of building a new custom home:

• It is more expensive: Building a new custom home is typically more expensive than buying an existing home. This is because you are paying for the land, the construction, and the materials.
• It takes longer: Building a new custom home can take longer than buying an existing home. This is because there are more steps involved in the process.
• There is more risk: There is always some risk involved in any construction project. This is especially true when you are building a custom home, as there are more variables involved.

Here are some additional things to keep in mind when considering building a new custom home:

• Your budget: It is important to have a realistic budget before you start planning your new home. This will help you avoid overspending.
• Your timeline: How long are you willing to wait to move into your new home? Building a custom home can take anywhere from 6 months to 2 years, so it is important to factor this into your decision.
• Your location: Where do you want to build your new home? The location of your home can affect the cost of construction, as well as the availability of land.
• Your needs and wants: What are your must-haves and nice-to-haves in a new home? Making a list of your needs and wants will help you narrow down your options and make the best decision for you.
• Tennessee geology: Tennesee geology has a very direct impact on a building sites feasibility. A real estate professional with direct experience with land purchase in Tennessee is invaluable.