What to know before house hunting in D.C. this spring
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New construction homes may offer enticing incentives for buyers, but those new builds are also significantly more expensive (at least on the front end), per the latest from Realtor.com.
Why it matters: The true cost of homeownership goes beyond the list price.
- New construction will cost more upfront, but older homes require more maintenance.
What we're hearing: In this expensive, inventory-starved market, buyers are picky, but they typically want to see all the options — new and old — longtime agent Ileann Jimenez-Sepulveda tells Axios.
State of play: As of early March, roughly 6% of single-family homes for sale in D.C. were new construction. That share increases to 15% for condos, Jimenez-Sepulveda says.
- Inventory across the metro is up 11% compared to this time last year, but down about 28% compared to February 2019, the latest MLS data show.
There are pros and cons to brand new and older homes, Jimenez-Sepulveda says.
- Newly built homes are often more energy-efficient and loaded with high-tech upgrades. And if they're done done well, homeowners shouldn't have to make any repairs for at least a decade.
- Meanwhile, existing homes are often made with higher quality materials you can't find today. These homes have more character and mature landscaping. They might also be on larger lots in established neighborhoods that have proven price appreciation and deep community connections, she says.
Pro tip: Old or new, never skip the inspection. There's always a list, even for new builds, Jimenez-Sepulveda says.
- For new homes, you want the developer to make those changes before you officially close the deal. In many instances, these will be minor details, Jimenez-Sepulveda says. But some of her new-build inspections haven't even made it out of the basement due to major foundational issues.
- Taking care of whatever was found during the inspection of an existing home can typically be negotiated with the seller. They might handle the changes, or the buyer might be able to ask for a credit so they can hire their own contractor.
The bottom line: Owning a home today is expensive, whether you spend more upfront or on repairs/upkeep.