Differences Between Buying New Construction and Previously Owned Homes
There is a big difference between buying a new construction home and one that was previously owned. When you are buying a home that has already been lived in you are purchasing someone’s memories. One of the advantages of buying new construction is that you do not have to deal with the emotions of the buyer therefore the emotions are left out of the sales process. When buying new construction, as with a home that was previously owned you will need to secure financing, budget for the unexpected and get pre-approval on a home loan.
If you are contemplating the purchase of a newly constructed home below are some steps to help guide you along the process.
Evaluate the Pros and Cons
One of the benefits of owning a newly-constructed home is that no one else has lived in it. Everything is bright, shiny and new for you to use before anyone else. There are three different options in buying new construction including:
Buying a new house on spec
Purchasing a semicustom home from preselected styles
Buying a fully custom designed home
There are many reasons to purchase new construction and a few cons as well. Previously built homes have mature landscapes where new construction you are cultivating something from nothing. It could take quiet sometime for the landscape to mature. Many times new construction is a bit cookie cutter. Will having homes in the neighborhood that look similar to yours bother you? New construction also tends to be built super close together; is the lack of privacy worth living in a new construction home?
Investigate Neighborhoods and Area Home Builders
When buying a new construction home you will want to work with a buyer’s agent that not only specializes in new construction but also is familiar with the area, can set up home tours and help throughout the closing process. The listing agent will be working in conjunction with the builder therefore their agenda will be for the seller not you the buyer. A listing agent won’t necessarily be looking out for the buyer’s best interest in the sale. It is crucial that you tour new construction only when doing so with your agent.
Go to the open models within new construction neighborhoods you are interested in. Make sure to take notes and pictures to keep track of the different options offered and the neighborhoods. Talk with other homeowners within the neighborhood. Ask about their experience with the builder and talk to them about the neighborhood.
Make sure to look into the development builder as well. Talk to local agents that have worked with the builder before. Talk with the better business bureau about any complaints against them. Talk with the occupants of homes that the builder has recently finished. All of these people will offer you a different perspective into working with the buyer.
In our next installment in buying new construction we will talk in depth about what is standard verse what upgrades are extra, home inspections and warranties, and the closing process.