Busting 4 Myths About Buying a Newly Built Home

by Bob Patel

Don’t Let Outdated Beliefs Keep You from Exploring New Construction

If you’re skipping over new construction in your home search, you could be missing out on some of the best opportunities in today’s housing market. Many buyers hold back based on assumptions that just don’t hold up anymore.

Let’s break down four of the most common myths about buying a newly built home—so you can shop with confidence.

Myth 1: New Homes Are Always More Expensive

Think a brand-new home comes with a higher price tag? That’s not always the case.

According to the U.S. Census Bureau and the National Association of Realtors (NAR), the median price of new homes is now lower than that of existing homes in many areas.

Why the shift?

🏡 “New homes are getting smaller on average, and builders are doing more price cuts,” says Heather Long, Chief Economist at Navy Federal Credit Union.

Smaller square footage and builder incentives are making new construction more competitive than ever. If you’ve been avoiding new builds based on price alone, it’s time to take another look. Your local agent can help you find options that fit your budget and lifestyle.

Myth 2: Builders Don’t Negotiate

Many buyers assume builders won’t budge on price—but that’s often not true.

Builders with completed inventory are motivated to move homes quickly. That urgency often translates into:

Mortgage rate buy-downs
Closing cost credits
Upgrades at no extra cost

As Mark Fleming, Chief Economist at First American, puts it:

💬 “It costs money not to sell the home. Builders are offering incentives and are more open to negotiation than you might think.”

In fact, Zonda reports that 75% of new home communities offered move-in-ready incentives in recent months. That’s a big opportunity—if you have the right agent advocating for you.

Myth 3: Older Homes Are Built Better

There’s a perception that “they don’t build them like they used to.” But the truth? Craftsmanship depends more on the builder than the age of the home.

The National Association of Home Builders (NAHB) suggests speaking with recent buyers and checking reviews before making a decision.

✅ Ask these questions:

Did the builder meet your expectations?
Would you build with them again?

Even better—ask your real estate agent. They likely know which builders have the best reputation in your area.

Myth 4: You Don’t Need a Buyer’s Agent

This could be the biggest misconception of all. When buying new construction, having your own real estate agent is crucial.

Builder contracts can be complex, and the builder’s sales team represents their interests—not yours.

A recent Realtor.com survey revealed that buyers found their personal agents more helpful than the builder’s representative during the buying process.

Your agent will:

Review contracts
Negotiate upgrades or incentives
Ensure you’re protected from start to finish

Bottom line? Don’t walk into a model home without your own representation.

Final Thoughts: Don’t Overlook New Construction

Today’s market is changing, and newly built homes offer some of the most flexible and competitive options available. From lower-than-expected prices to incentives that sweeten the deal, new homes are worth a second look.

Thinking about exploring your options?

👉 Let’s connect and see what’s being built near you—you might be closer to your dream home than you think.