Two Property Types To Approach With Caution in 2025

New Construction Homes

What Makes New Construction Appealing?

New construction homes often appeal to buyers because they’re brand new. Everything from the appliances to the roof is unused and modern. Many buyers are drawn to these homes for their move-in-ready condition and the potential for lower maintenance costs. But things aren’t always as seamless as they seem.

The Rising Concerns With New Construction

In recent years, issues with new construction homes have become more common. Buyers are finding homes built with cheaper materials and sloppy workmanship. Stories of uneven floors, cracks in foundations, and plumbing disasters are popping up everywhere. What’s changed? Builders are under pressure to complete homes faster and cheaper, cutting corners in the process.

Researching the Builder Is Non-Negotiable

Before committing to a new build, take the time to research the builder thoroughly. A quick online search for the builder’s name along with the word "lawsuit" can reveal a lot. If lawsuits show up, read the details. It’s also worth exploring local reviews of the community or development. Look for complaints about warranties not being honored, flooding issues, or repeated home defects.

The No-Yard Trend

Another issue to watch out for with new builds is shrinking lot sizes. Many new homes today come with little to no yard. For some buyers, this trend might be a dealbreaker. Ask yourself: will a tiny outdoor space work for your family’s lifestyle?

Real-Life Horror Stories

Here’s an example that underscores why you need to be cautious. A homebuyer in Utah purchased what should have been their dream home, built by a well-known builder. Within months, the house developed major foundation issues. Over four years, the repairs have been so extensive that the family still can’t live there. Plumbing issues, foundation cracks, and other disasters made the home a money pit. The worst part? There’s no "lemon law" for homes. Once you buy, if there are problems you cannot return the home.

Why Inspections Are Critical

Never assume that new construction means a perfect home. Always hire a qualified inspector to check the property at multiple stages of construction. For example, one inspector found that a builder had completely skipped insulating a wall. These kinds of oversights occur more often than you’d think.

The Takeaway for New Construction Buyers

A new home isn’t necessarily a bad choice, but you must approach with care. Do your homework on the builder, read reviews, and invest in inspections. Don’t let the excitement of owning a shiny new property cloud your judgment.

Condos

Why Buyers Consider Condos

Condos often appeal to buyers looking for lower-maintenance living. Many come with amenities like pools, gyms, and landscaping that’s managed for you. But condos carry their own set of risks, especially relating to the building’s overall condition and financial health.

Deferred Maintenance - A Hidden Danger

One of the biggest issues with condos is deferred maintenance. This term refers to repairs or updates that the building has put off for too long. Seemingly small problems like leaks, cracks, or structural wear can turn into costly disasters over time.

The Surfside condo collapse in Florida was a tragic example of deferred maintenance gone wrong. Structural issues weren’t addressed in time, leading to the building’s failure and loss of life. Although this is an extreme example, smaller maintenance delays can still lead to massive repair costs for condo owners.

Surprise Assessments - A Buyer’s Worst Nightmare

When maintenance issues pile up, condo owners often face assessments. These one-time charges can cost tens of thousands—or even hundreds of thousands—of dollars. Imagine buying a condo and, a month later, getting a bill for $100,000 to fund emergency repairs. It’s a reality some condo owners are living with today.

How to Protect Yourself When Buying a Condo

Before purchasing a condo, you need to do a deep dive into the building’s financial and structural health. Key things to request include:

• Meeting notes from the HOA (Homeowners Association): This can reveal if repairs or issues have been discussed but not yet resolved.
• The HOA’s reserve fund balance: This shows whether the building has enough money set aside for future repairs.
• Upcoming assessments: Make sure no major costs are looming.

Additionally, pay attention to the building’s exterior and common areas. Look for cracks, water stains, or signs of neglect. These can indicate bigger problems underneath.

Financial Struggles Facing Condos Today

Since the Surfside tragedy, condo buildings are being forced to update their structures to meet stricter safety standards. While these changes are necessary, they’re also expensive. Many buildings don’t have the funds ready, leaving current and future owners to foot the bill.

Is the HOA Well-Managed?

A competent HOA is essential to a condo’s long-term success. Even if the building is in good shape now, mismanagement or leadership turnover can cause problems down the line. Be cautious if there’s any sign of disorganization among board members.

The Takeaway for Condo Buyers

Condos can be a great option, but you need to understand their risks. Do your research, ask the tough questions, and evaluate the building’s overall condition—not just your unit. By taking these steps, you can avoid unexpected financial burdens and feel confident in your purchase.

Making Smart Choices as a Homebuyer

Whether you’re considering a new construction home or a condo, the truth is the same: research is everything. Here are some key strategies to protect your investment:

• Investigate thoroughly: Use resources like Google, Reddit, and local Facebook groups to uncover real-life experiences with builders or condo developments.
• Hire an expert: A qualified inspector can catch issues you’d never think to look for.
• Ask clear questions: Be specific with builders or HOA representatives about potential problems, assessments, and repair timelines.
• Read the fine print: Dig into contracts, inspection reports, and meeting notes to spot hidden risks.

Conclusion

Being a smart homebuyer means knowing what to look for—and what to avoid. With new construction homes, be wary of workmanship quality, shrinking lot sizes, and the builder’s reputation. For condos, focus on the building’s structural health, potential assessments, and HOA management.

By doing your research and asking the right questions, you can make an informed decision that works for you.

Don’t rush. Taking the time to investigate will save you from costly surprises later. Homeownership is a major milestone.

Ensure it’s a joy - not a burden.



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