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7 Tips for Buying a New Construction Home

7 Tips for Buying a New Construction Home

new construction home

Looking at buying a new construction home? Purchasing a brand new home or building a home is a different process than buying a preowned home. There are several things you should know before you buy to ensure the smoothest transaction for you. Here are seven tips to help you purchase a new construction home.

1. Find an experienced new construction agent

One of the best ways to ensure a smooth new construction buying experience is to hire a great agent who is not only a seasoned buyer specialist but also experienced in dealing with new construction. It’s important to have an agent who will be on your side and working in your best interest. Your realtor will be able to help with the purchase price, upgrade negotiations, builder incentives, future resale value, and will be your advocate. And, best of all, using an agent to purchase a new construction home comes at no cost to you!

2. Don’t be afraid to ask.

Because new construction neighborhoods are so new, builders don’t typically negotiate much on price to ensure the neighborhood values stay at a good price point. However, they are often willing to throw in upgrades and closing costs – if you ask. These extras typically don’t affect home values, but they help make the transaction better for you as a buyer.

3. Get it in writing

Don’t think a verbal negotiation is binding. Make sure all negotiations have been written out, signed and added to the purchase contract. This will ensure everything is met to yours and the builder’s satisfaction.

4. Get a home inspection

Just because its new, doesn’t mean you shouldn’t have your home inspected. Before you close on your home, have the home inspected to make sure no mistakes were made. Not all builder warranties are created equal. Depending on the stage of the home when you sign an agreement, you can have several inspections throughout the building process to make sure your new home is up to the highest standards.

5. Look at the builder’s warranty

Before you close on your new home, look at the builder’s warranty so you know what is covered, what is not, and how long your warranty lasts. You may have more than one warranty depending on any manufacturer’s warranty the home may have. Make sure you have all the details regarding all warranties before you close on the home and before any problems arise.

6. Know the community

If you’re moving to a new city or even to just a new community within the same city you’ve always lived in, it’s important to check with the city about any other developments coming in around your new home. You may have a great view of woods now, but that may not be true in 10 years. Do what you can to learn as much about the area as much as possible and not just rely on any information the builder may have.

7. Shop for your lender

Most Americans don’t shop for a home loan, which ends up costing them more money. It may be convenient to use the builder’s recommended lender, but that loan may not be best for you. Before you put in an offer, make sure you have spoken to several lenders and get pre-approved by the lender you will use. Many builders will still require you to be pre-approved with their preferred lender, but you don’t have to use them. Some builders will give you incentives if you decide to go with their lender, so make sure you do your due diligence before making any decisions.

If you have any questions about purchasing new construction homes, give Minteer Real Estate Team a call, we’d love to help you!

(Source: Rosse Real Estate)