Are These Myths About Buying a Newly Built Home Holding You Back?

If you’ve been skipping over newly built homes in your home search, you may be missing one of the biggest opportunities in today’s market — all because of outdated assumptions.

Let’s break down the 4 most common myths about new construction so you can make the best decision for your future.

Myth 1: New Homes Are Always More Expensive

Not anymore.

Today, the median price of a new home is actually lower than that of an existing resale home.

According to the latest data from the Census and the National Association of Realtors, new homes are more affordable on average — by about $30,000.

So, what’s behind this shift? Builders are responding to demand. As Heather Long from Navy Federal Credit Union explains:

“This largely reflects two trends: New homes are getting smaller on average, and builders are doing more price cuts.”

That means you could get a brand-new home for less than a resale — with modern finishes and warranties included.

Myth 2: Builders Don’t Negotiate

Think builders won’t work with you on price? Think again.

Right now, many builders are sitting on move-in ready homes — and they’re offering serious incentives to get them sold quickly. According to Zonda, 75% of new home communities were offering buyer perks just last month.

Mark Fleming, Chief Economist at First American, puts it this way:

“It costs money not to sell the home... [builders] are not going to be pulling back on incentives, especially the mortgage rate buydown.”

From closing cost assistance to interest rate buydowns, today’s new home deals might surprise you.

Myth 3: They Don’t Build Them Like They Used To

Sure, older homes have charm — but quality can vary no matter the age.

The key to quality is not age, but the reputation of the builder.

According to the National Association of Home Builders (NAHB), a reputable builder should gladly offer references from past buyers. If not, that’s a red flag.

Ask your real estate agent for insight — they likely know the top local builders, their reputations, and which communities are worth your attention.

Myth 4: You Don’t Need Your Own Agent

This is one of the most common — and most dangerous — myths.

Builder reps work for the builder. You need someone who works for you.

From understanding contracts to negotiating incentives, a buyer’s agent ensures your best interests are protected every step of the way.

Need proof? According to a Realtor.com survey, buyers who used their own agent found them more helpful than the builder’s rep in nearly every category.

Bottom Line

Don’t let old beliefs cost you a great deal.

With prices more competitive than expected, builder incentives on the table, and the right agent by your side — a newly built home could be the smart move you’ve been overlooking.

?? Curious what new construction is available in Los Angeles, Glendale, or Burbank? Call us at 818-860-7386 and let’s explore your options together.