Today’s market has no shortage of cheap, previously-owned homes to pick through. But you have decided to buy a new construction home or have one built to your liking. Despite all of the benefits of buying a new construction home, you will want to make sure you do it right with these seven tips.
1. The Right Agent
A great agent to help you navigate the new construction buying process will have specific experience with builders and buyers in the area. However, they should not be affiliated with the builder. Builders and real estate agents often maintain relationships, but you will want someone to look out for you best interests.
2. Research the Builder
Searching reviews, testimonials and news online might be the best place to start. After that, you can visit other developments and talk to homeowner’s that have worked with the builder. Remember that most builders will have both satisfied and unsatisfied customers. Don’t get turned off by one bad review. Look for trends and cover your concerns in the purchase agreements.
3. Creative Negotiations
You can negotiate other factors besides price as most builders are opposed to lowing their prices. Other options include asking the builder to pay closing costs or performing upgrades at no additional charge.
4. Everything in Writing
Make sure that everything has been negotiated, agreed upon and written in contract form before you sign anything. If you are purchasing an incomplete home, it is important to ensure that you specify in writing how you want the home finished. Keep in mind that verbal conversations are not binding.
5. Remember that you don’t always get what you see
Fully finished, decorated and staged model homes aren’t a true representation of what comes standard from builders. All of those fancy upgrades like stainless steel appliances and hardwood floors come with a price. Avoid sticker shock when touring the home. Ask the guide which features are standard and which are extra.
6. Guarantee Please
When buying a home that is not completely finished you will want to ensure that you have guarantees the home will be ready on time. Some new construction homes even come with warranties covering the home up to a year for anything they may have overlooked.
7. Home Inspection
Going along with their warranty, newly built homes often have problems too. Hire an inspector to make sure everything is safe and up to code before moving in and signing off. Typically, builders allow the buyers to conduct an independent inspection and agree to repair code compliance issues. However, they do not include a provision that allows buyers to walk away without losing their deposit.