Buyers risk being disappointed in their purchase of new construction because the overall quality of new builds is generally average or worse. Good quality new homes are the exception, not the rule. Even in upscale neighborhoods, we see new homes erected every year that are not going to withstand the test of time without costly repairs and improvements. We build new homes, and we admit that home builders could do better.
Below is our view of the top three reasons new home builders disappoint.
Builder Education. New home construction has changed more in the last decade or so than the previous 50 years. So much advanced information is now available about best practices for building enclosures, long-term durability, interior air quality, material science, and more. Quite a few builders ignore these practical developments. It’s a form of construction malpractice to build a new home today as if it was state of the art in 1998 (or earlier). Unfortunately, some builders exhibit a “this is how we have always done it” mentality that is a disservice to everybody.
Code is All. A recognized building expert once said that a code-built home is the worst home you can build without going to jail. Modern building codes have, to be fair, created a threshold focused on occupant health and safety. But they have also created a perverse incentive for builders to erect homes that only meet the minimum code requirements using low-cost labor and materials. Nothing more. Building codes evolve slowly, and builders routinely miss opportunities to surpass code requirements for the benefit of the buyer.
Shiny, Pretty Things. Information asymmetry in new home construction simply means that the builder knows more about building than the buyer does. The typical builder is counting on it. He prioritizes things that the buyer can see and touch in order to justify the purchase decision. Think cabinetry, millwork, and appliances. The result is form over substance, even in multi-million dollar homes. Less effort is dedicated to building a high quality home that will be enjoyed by generations of occupants. This is a common misallocation of resources we see in new construction, to the disadvantage of the buyer.
Building a new home or addition is a journey. A capable partner increases the odds of success. If you are planning to build in the North suburbs of Chicago, we welcome the opportunity to discuss how we may help.