If you’re planning to purchase a house in 2025, it might be wise to avoid homes that are yet to be built, according to insights from a real estate agent.
While some people opt for unconventional living arrangements like residing on cruise ships or in dumpsters, others have managed to save enough to consider buying a property by making lifestyle changes such as cutting out coffees and avocados.
However, for those in this position, a real estate agent offers a cautionary note.
Earlier this year, TikToker Hard Money Guy shared a warning on the platform about buying new houses. He highlighted concerns stemming from what homeowners with properties purchased before 2020 are likely to do—or not do.
He advises, “I hate to say it but I would not advise anyone to buy a home that’s about to be built from the year 2025 to the year 2035.”
The real estate scenario in America is described as a “definite catch-22,” a problem that he believes is not going away soon.
With the cost of living at an all-time high, those who bought homes before 2020 are unlikely to sell their properties, regardless of interest rate changes.
He further explains, “Yes in theory, if interest rates come way back down, some people will sell their homes, but if interest rates go down and supply is not drastically increased, home prices will go up.”
The TikToker notes that the reason home prices have not decreased is due to limited supply. He mentions that except for a few southern states with excess inventory and high insurance costs, home prices have risen by about four percent nationally this year.
“Home sales are actually at the lowest level since 1995,” he added. “And the only reason that’s the case is because the demand is not there, the demand is not there because the interest rates are so high, people can’t afford s**t.”
This situation brings new home incentives into play.
The TikToker elaborates, “What you’re going to see is heavy government incentives for homebuilders to build homes across the country – that’s the only way to increase the supply.”
This move, while economically stimulating and job-creating, could potentially lead to issues with construction quality.
He warns, “But what happens when you heavily incentivize homebuilders? You get quantity over quality.”
The TikToker has delved deeper into the problem.
@hardmoneyguy Real estate disaster
The real estate agent claims that in the rush to build many new homes, companies may compromise on quality, cutting corners extensively.
“They already do it, you can see it go on any of the home inspector pages on TikTok – the guys that are inspecting new construction homes – it’s all garbage, s**t quality, cutting corners all over the place and there’s a lot more of that coming,” he states.
However, should this deter potential buyers? If you’re set on buying a new build, Hard Money Guy suggests negotiating for a ‘five or 10 year builders warranty’ to protect your investment.
While many new homes come with a one-year warranty, he strongly recommends taking steps to ‘protect yourself.’