The New Build Dilema

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Here we are—nearly three months into 2025, and the Arizona real estate market is still keeping everyone on their toes. Prices have remained relatively steady, and it’s still a buyer’s market, yet some sellers (and even agents) haven’t quite caught on that this isn’t 2015 anymore. Some homes are still way overpriced, sitting on the market longer than they should.

But let’s be clear: this isn’t a doom-and-gloom post. The market is still good—in fact, it’s a great time to buy. However, there’s an interesting dilemma that buyers need to be aware of when making their next move.

The New Build Advantage

Now, before you think I’m about to bash new builds, let me stop you right there. The Grandon Group—Arizona’s #1 Brother and Sister Real Estate Team—has been selling a ton of new builds lately. And for good reason! Builders like Lennar, KB Homes, Taylor Morrison, and Toll Brothers (just to name a few) are putting out some fantastic homes right now.

But here’s where things get interesting…

Let’s say Mr. and Mrs. Buyer get prequalified through a regular lender. If they go to buy a home—whether it’s a resale or a new build—their interest rate is likely sitting in the upper 6% range (or higher). Not great, but manageable.

However, if that same couple walks into a new build sales office, they’ll probably find out they can get a much lower interest rate—somewhere around 5.5% or even less.

How is this possible?

Builders saw this market shift coming and locked in lower rates with their banks and investors well in advance. That means they can now offer special financing deals that most traditional sellers simply can’t compete with.

So, What’s the Dilemma?

Buying a home with a significantly lower interest rate means:

✔️ Lower monthly payments

✔️ More buying power (you might be able to afford more house for the same budget)

✔️ Better long-term financial benefits

Sounds like an easy decision, right? Well, not so fast.

The challenge is that many of these new builds aren’t always in the exact location buyers want. They’re often in booming, up-and-coming areas rather than well-established neighborhoods. So buyers have to weigh what’s more important:

• Getting their ideal location with a higher interest rate or

• Getting a brand-new home with a lower rate in a developing community

The Bottom Line: Don’t Ignore Your Options

Look, I’m not saying don’t buy a resale home. Resale homes have charm, character, and often better locations than new builds. But with today’s market conditions, you owe it to yourself to at least explore new builds.

And no matter which route you take—make an offer. Too many buyers (and even some agents) are afraid to negotiate, worried they might offend a seller. But this is business. If a home is overpriced, put in an offer that makes sense. The worst they can say is no, but you might just land a great deal.

At The Grandon Group, we’re here to help you navigate this market and make the best decision for your future. Whether you’re looking at resale or new builds, let’s find you the right home at the right price.

Stay tuned for my next podcast episode where we dive deeper into ‘The New Build Dilemma’ and talk about what’s really happening in the Arizona market right now!

Thinking about buying? Call us today!

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Grandon Group
480-276-2954

Thank you for watching The Lockbox brought to you by Arizona's #1 Brother and Sister Real Estate Team, THE GRANDON GROUP powered by My Home Group.

Call us anytime at 480-276-2954 JASON or my sister Stacey at 602-312-5610