There is nothing like a shiny new toy to bring a smile to a person's face. Whether it is a purse, tech gadget, car or a newly constructed home bought in pursuit of achieving the American Dream, consumers are obsessed with owning the latest and greatest. Although there are many perks associated with buying a brand new home, there are some disadvantages of the move and Mortgage Marvel has decided to layout both sides of the story.

Advantages of Buying a Newly Constructed Home

Thanks to the current state of economic affairs, the real estate market is flooded with properties for sale. Housing options include properties being sold by private sellers, a slew of foreclosed properties that have now become real estate owned or even the property of Uncle Sam, and newly constructed homes being sold by the builders. While a majority of the latter come with substantially discounted price tags, there are some selling points of new construction projects that may make these properties a better choice based on your needs.

Homebuilders know that to sell their properties quickly and within a healthy profit margin, the properties must be constructed to follow trends in the housing market. New homes are being constructed to be more energy efficient and there are several ways the furor is appearing in newly constructed homes. New homes are being built smaller than previous years as large homes are no longer chic. Additionally, builders are making sure to install more energy efficient touches such as green appliances, low flow toilets and shower heads and windows that can help keep homes naturally cool or warm (depending on the need).

Newer homes may also require less repair or maintenance work in the long run. Builders know that their homes need to be appealing to the majority of buyers and therefore install the most stylish and contemporary looks during the construction process. That means consumers moving into a new home will get spanking new flooring, window treatments and anything else that may need to be replaced by purchasing a pre-owned property and those who get involved early enough may be able to get customized touches. Plus, builders are opting to use materials that will require less maintenance in the long run (according to MSN.com some examples include new fangled composite materials as opposed to wood that will break down over time). Finally, many of these property sales come with warranties requiring the builders to take care of general repairs for a year after purchase.

Aside from all the features that may make a new home more enticing, the best may come from pricing and financing opportunities directly from the builders. Some builders are large enough that they have the financial resources to provide owner financing to buyers. Construction firms may offer enticing promotional offers including no-money-down, low interest rates and even no point mortgages.

Disadvantages of Buying a Newly Constructed Home

While the perks associated with buying a new home may seem limitless, there are some risks involved with the practice. The biggest one comes from a home not actually being completed in time by a move in date and builders not being able to meet the time obligations of prospective buyers.

One example of this failure comes courtesy of Ivana Trump's attempt to build a 73-story condo unit on the infamous Las Vegas strip. At the time, interested buyers bought their future homes site unseen and off models and floor plans. Construction for the property never even began and the money had to be returned to the brave few who took the risk. While the money was tied up in that project, consumers lost money in the form of interest and profits associated with other investments.

The risk factor is even greater for construction projects that are waiting for government approval to proceed. The NY Times recently reported that one family's dream of relocating to their newly constructed home in spring now have to develop a plan B because the builder failed to receive Federal Housing Administration approval for the process. The buyers are currently struggling to get their deposit money back, despite the builder being in the wrong.

Why Buy a Home Now?

If you are financially poised to buy either a newly built or pre-existing home, now is the time to buy. The real estate market is flooded with available housing, discounts are easy to score, mortgage rates are historically low and new research conducted by Credit Suisse have indicated that the price gap between renting vs. buying has nearly closed. Consumers looking to score deals on any properties should act sooner than later in order to ensure they get the best value for their home buying dollar.