Most Americans Have Regrets About Buying a New Construction Home (2022 Data)

[Adamas102]

I did watch, over priced brand new homes that anyone who can afford are getting ripped off. I’d still buy low make the investment into something I own and know everything about. Versus buys into an idea I was sold.

Are you suggesting that people can't get ripped off buying overpriced older homes, because they sure as hell can. You're also not going to know everything about an older home without a proper inspection which is what people buying ANY home (new or old) should get anyway. People buying new builds shouldn't have to be spending time on fixing things right off the bat, so this idea of buying a cheaper home that you know is going to require time and money to fix up isn't an answer.

Nothing you've said has convinced anyone think that you have any idea what "investment" actually means, but if all you really want to say is that you don't like the idea of newly built homes then that's all you had to say. It's a weird hangup that ignores a lot of detail, but whatever.

[Doctor Amadeus]

Are you suggesting that people can't get ripped off buying overpriced older homes, because they sure as hell can. You're also not going to know everything about an older home without a proper inspection which is what people buying ANY home (new or old) should get anyway. People buying new builds shouldn't have to be spending time on fixing things right off the bat, so this idea of buying a cheaper home that you know is going to require time and money to fix up isn't an answer.

Nothing you've said has convinced anyone think that you have any idea what "investment" actually means, but if all you really want to say is that you don't like the idea of newly built homes then that's all you had to say. It's a weird hangup that ignores a lot of detail, but whatever.

As I said lots of predators in the housing market. Easier to point at others and deflect.

[Rasulis]

The difference between buying a pre-owned home and brand new construction is expectation.

Our current home was built in 1904. The previous owner had three boys and lived there for 20 years. When we bought it in 2020, we knew what to expect. We ended up replacing all the windows, plumbing, and upgrading the electrical panel, wiring and outlets. We also took apart and refinished the hardwood floor, wood panels, and stairs steps, balustrades and railings. Three boys definitely put a lot of wear and tear on those. The stairs’ runner had to be taken apart and sent to a carpet cleaning company. It was beyond vacuuming and steam cleaning.

However, that’s not something that you would expect to do with a brand new home.

How long is the typical inspection defect list for a pre-owned home? My wife has been a real estate agent/broker for over 40 years, and the list for a typical single-family residence is 1 - 3 pages. So, six pages or more for new residential construction is definitely out of the norm.

My wife and I did a 24-unit development in Jamul Highland, San Diego County between 2000 - 2004. Our builders’ risk insurance did not receive a single claim during the 10 years warranty period. Again, having an entire development making claims within the first year of occupancy is not the norm.

I want to add that during the same period that we did our development project, Eastlake LLC did tens of thousands of houses in Eastlake, Chula Vista. Their builders' insurance only received a handful of claims.

[The Stormbringer]

@Rasulis Out of curiosity, when you say "24-unit development", are you saying 24 houses, or an apartment complex with 24 apartments?

Either way, I think there's probably going to be a difference between finding a construction company that builds you dozens of homes/a really big building versus a construction company that just builds a singular house. Businesses that focus on large scale construction stand to lose much more if they cut costs and skimp on materials, and are at higher risk of lawsuits actually losing them business compared to small setups that can likely sweep their shitty work under the rug.

[Rasulis]

@Rasulis Out of curiosity, when you say "24-unit development", are you saying 24 houses, or an apartment complex with 24 apartments?

Either way, I think there's probably going to be a difference between finding a construction company that builds you dozens of homes/a really big building versus a construction company that just builds a singular house. Businesses that focus on large scale construction stand to lose much more if they cut costs and skimp on materials, and are at higher risk of lawsuits actually losing them business compared to small setups that can likely sweep their shitty work under the rug.

It was 24 homes. Each on 2-acre parcel. The smallest parcel size allowed by the County of San Diego in the area back then. I would have loved to go down to 0.75 acre per parcel and built more homes. However, that would have required bringing municipal sewage in through a winding two-lane country road. The cost would have been astronomical.

Just to be clear, we brought in electricity and water. We were able to hook up to existing connection in Jamul Highland Road. There was no sewer, nor gas, in Jamul Highland Road. We ended up using septic and propane for the homes.

[Sunseeker]

@Rasulis Out of curiosity, when you say "24-unit development", are you saying 24 houses, or an apartment complex with 24 apartments?

Either way, I think there's probably going to be a difference between finding a construction company that builds you dozens of homes/a really big building versus a construction company that just builds a singular house. Businesses that focus on large scale construction stand to lose much more if they cut costs and skimp on materials, and are at higher risk of lawsuits actually losing them business compared to small setups that can likely sweep their shitty work under the rug.

Generally speaking, this is completely ass-backward.

Small-time builders rely heavily on reputation. If Bob the Builder fucks up a house, he's gonna have a hella hard time getting work in the area, if he does it multiple times, he'll very quickly find himself completely out of work short of packing up and moving cross-country (something few small-time contractors do).

If Corporate Joe builds shitty houses, he's generally got 2 or 3 developments in the works, if not more, he's got deals (not illegal ones mind you) already set up with local governments, real estate agencies and subcontractors. He can fuck up a good couple dozen houses, because at the end of the day, "Joe's Homes" are going to be a substantial part of the market. You don't have a choice, you're gonna buy one of his homes.

And if you don't? You're probably buying a home from Corporate Bill or Corporate Schmuck. Especially in major suburban developments. Bob the Builder is gonna get a house in here and there, but functionally he lacks the capital and the connections to keep himself in business after a few shitty houses.

Companies that do large-scale construction have far far far less to lose. I don't know why anyone with even a cursory understanding of America and the power of money would think "bigger is more vulnerable".

[The Stormbringer]

Companies that do large-scale construction have far far far less to lose. I don't know why anyone with even a cursory understanding of America and the power of money would think "bigger is more vulnerable".

Class action lawsuits. Multiple people getting together and pooling resources to hire better lawyers and the like to actually take on a company and get serious reparations. Meanwhile, random Joe Schmoe will probably have to live with the damage done.

[Al Gorefiend]

I bought used in 2019 and value hasn't changed. I exist in the niche market of single person homes 1ba/bd, which not many invest into a home for only themselves. So with no room for growth or addons, any couple with a kid or a want for additional space aren't potential buyers, and not many single people have the level of disposable income I do.
This is no doubt going to lead into me eventually renting out, as the market is definitely there for renters. But I don't have a 2nd property to move to yet before playing landlord.

[Sunseeker]

Class action lawsuits. Multiple people getting together and pooling resources to hire better lawyers and the like to actually take on a company and get serious reparations. Meanwhile, random Joe Schmoe will probably have to live with the damage done.

Ah man, you're funny. Thanks for that laugh.