How New Home Construction Can Hurt Your Home’s Value
New home construction presents a new challenge for homeowners looking to sell their existing home. Buyers typically prefer newer homes because they have energy efficient appliances and modern features.
So how can you improve your home’s appeal to prospective buyers in the face of nearby new construction? Here are few ways to protect your home’s value:
- Visit nearby new construction that’s similar to your home in size, bedroom count, and price point. Take a tour of the model home and note how it differs from your house in design, layout, and features. We’ll be able to promote those differences when we market your property.
- Highlight all energy efficiency and maintenance work that has been done to your home to your agent, since since most of those improvements won’t be visible on inspections. Younger buyers place a strong emphasis on energy efficient appliances and smart home technology like Nest thermostats, so those upgrades could make your home more competitive with newer homes.
- Research incentives being offered by builders. In order to sell out a subdivision, builders will often offer to pay for closing costs or to include free upgrades on a new home. You can remain competitive by offering the same closing cost incentives and/or something of similar value to an upgrade to potential buyers.
- Offer a home warranty. Most builders offer a warranty free of charge, and their appliances are brand new. By offering a similar warranty for your home, you can provide buyers with the same assurance of longevity for the property’s vital systems.
New home construction will continue to flourish as long as the housing market remains strong. Your best defense against home value pressure from new construction is a good offense – if you’re thinking about selling in the near future, list your home sooner rather than later before a builder moves in nearby.