Valuable Tips for Buying a New Construction Home
So, you’re in the market for a new construction home, but where do you start? Most tips are geared towards buying an existing home. However, buying a brand new home is a unique opportunity and brings appeal when you can customize to fit your needs and wants. As amazing as it can be to own your dream home, building a new construction home can be equally frustrating to discover that your home doesn’t come close to meeting your expectation. Of course there are some important tips to remember when you are considering the purchase a new construction home. Here’s what you need to know.
Find an Experienced Real Estate Agent.
The most important step is finding an experienced real estate agent. The agent that occupies the model center is working for the builder and has only the builder’s interest in mind. Not yours! Hiring a buyer’s agent who is experienced dealing with builders and that is familiar with the local community can be quite helpful. The buyer’s agent can provide you with beneficial information, such as hiring the right builder, guiding you on the community and lot, recommend upgrades or modification, contract, paperwork and negotiate on your behalf. Also, there is no cost to the buyer because the seller usually pays the commission.
Get to Know the Area.
In addition to using a real estate agent that is well versed in the area, investigate the area you’re interested in and the surrounding areas. Find out what developments are planned for the future. Be aware of traffic planning, airports, new neighborhoods, and research homeowners associations covenants that can affect the future value your new home as well. Be sure to visit the area at different times of the day, it can be quite revealing. Also, talking to already established residents can help further your insight.
Research the builder.
When you find a builder you like, check out their online reviews and talk to previous customers. Though it is worth noting that some builders will have happy and unhappy customers, so just be aware when reading the reviews. You can also research local court records to make sure the builder hasn’t had any serious bumps in the road. Talk with several different builder and contractors in the area who know the work of the builder you are considering. Check out the homes the builder completed recently, seeing their craftsmanship, the type of products they use, the level of detail and more importantly do they show pride in their work. Making sure you are well informed when choosing a builder can save you a lot of headaches. Remember, you and your family’s housing needs are in their hands.
Get Creative With Your Negotiating.
Many times new home builders will offer special financing to attract buyers. Although, if you don’t ask, you may not find out about them. It goes without saying, there can be some very appealing financing packages out there. Since it can take months to build, home builders can include lower interest rates or an extended rate lock at no additional charge. Also, builders may be more likely to offer free upgrades or pay the closing costs rather than to just drop the price.
Get a Quality Home Inspection.
Home inspections aren’t only for old homes. New homes can benefit from them as well. Sometimes in the rush to get the home built for the buyer, details can get overlooked. Hire a licensed inspector to make sure everything is safe and up to code. It’s easier to repair something before you move in than finding out several years down the road. In some cases, the homebuilder will will repair anything unsatisfactory that is found. However, if you are completely unsatisfied with the results and wanted to walk away completely, you would have that option. Although you could lose your deposit in the process.
Explore Lenders and Closing Agents.
You don’t always have to use the builder’s lender or closing agent. Granted, you may be offered discounts to entice you to do so. However, you’ll be better prepared to choose the best option for your situation, if you have gotten quotes from other lenders and talked to other agents. Buying a new construction home is different than buying an established home. Therefore, working with both a lender and real estate agent that have experience in closing new construction contracts is very beneficial. Remember, experienced industry professionals will help you stay informed, and are more likely to make sure your closing goes smoothly.
Get Everything in Writing.
Remember before signing anything, make sure everything has been negotiated to your satisfaction, agreed upon, and included into the contract. It is of the utmost importance to ensure that each detail is spelled out, including what will happen if completion and deadlines are not met. Verbal agreements cannot be enforced, so it is vital that everything is in writing and signed by everyone involved.
Buying a new construction home is a fun and exciting experience. Especially now that you’re armed with a little extra knowledge and know-how! Happy Buying!