Use an independent real estate agent: Homeowners will want to bring their own representation to the table when buying a new construction home. The sales representatives that are on hand work in representing the builder’s best interests in a new construction community. It is in you r best interest to have someone that is looking out only for your best interest when negotiations. This will help to ensure there is no conflict of interest when working out details of contracts, onsite inspections, and more.
A drop in the cost of building is rare instead ask for builder concessions: Builders rarely offer discounts. They have set, established pricing and tend to strictly stick to these when negotiating contracts. Instead if you are looking to get more for your money you can seek out a deal by looking to purchase a spec home or model. These homes have been built to attract buyers and once they have served their purchase are often offered for sale at a slight discount over other homes in the neighborhood. The drawback is that you will be buying the new construction home as is instead of getting to detail exactly what you desire.
Discuss the builder’s warranty: Warranties vary between builders. Some builders will offer an extended warranty lasting up to ten years for structural issues but put shorter stipulations on wear items such as plumbing, electrical and so on. Before signing the contract beware of what type of warranty is being offered.
Prepare for the unexpected: Occasionally suppliers discontinue materials. Be prepared to have some of the finishing touches you have chosen to change a bit along the way. Builders work diligently to prevent major changes from occurring however the unexpected can and does occur in new construction.
Require an independent inspection: A home inspector that is independent of the builder should be hired to do a final inspection once the builder has finished your home. They will go over the various aspects of the home including: plumbing, electrical, roofing, crawl spaces, attic, insulation and so on and so forth. This will allow and independent set of eyes to inspect the house thus allowing you to get these items repaired by the builder before closing on your new construction home.
Reap the benefits on move in day: The excitement of buying a new home is something that all buyers feel but purchasing new construction is even more thrilling. You will be the first person to use the appliances, take a bath in the tub and enjoy a relaxing day on the deck.
Buying a new construction home is a once in a lifetime opportunity for most of us. All of the decisions are up to you, the buyer! You will be the first person to sit in the tub, the person to choose the paint, the tile; each and every choice will be up to you. It will be hard not to get caught up in the excitement but avoid that at all costs and remember to focus on what’s important. The most crucial aspect of buying a new construction home is to have the home inspected thoroughly to allow the builder to remedy problems that exist before closing. Below are a few important aspects to consider when buying a new construction home:
Seek out and hire a professional real estate agent: Many times buyers don’t think about the importance of having their own representation when buying new construction. When building a new home you are often working directly with an on-site sales agent. It is important to have your own personal agent working with you and the on-site agent. Don’t feel you need to handle this huge challenge on your won. The on-site sales agent is in essence representing the builder so it is important that you have a realtor looking out for your interests.
Research, Research, Research: When you are making any substantial purchase it is essential to do your research. Look very closely into builders, their work and their references before signing any contracts to further work with any builder. You will want to be sure that all of their licenses and insurance policies are up to date. Ask questions about the sub-contractors that they hire and talk with homeowners who have recently had their homes built using the contractors you are considering.
Check out the fine print: A contract supplied by the builder which clearly work to only protect the builder and building company not the buyer. This is why it is crucial that you hire a real estate agent and lawyer to review the fine print of any and all contracts with the builder before signing on the dotted line. During each phase it is important to continue being represented. Review all warranties offered so that you understand what they cover and what is not.
Hire a home inspector and proceed with a final walk through: Have the home inspected independently throughout the building process. The pace builders are putting new construction homes together is gathering speed as the market increases. Builders are human too and therefore subject to human error so to ensure that nothing is missed an independent set of eyes is helpful for you and the builder. After the final inspection is done do an official walk through with the builder. This is a great opportunity to point out both major and minor issues that need to be addressed before closing. It is easier to address concerns before you are all moved in and settled.