Updated: Jan 5
Purchasing a new construction home is exciting – the home is brand new and you are the first and only owner. While a new construction home comes with a lot of perks, there are things you should know before purchasing a new build.
Research the Builder
Visit some of the other developments from the builder and talk to homeowners who have purchased their homes from this builder. Look online for reviews, news and testimonials to get a better feel for the builder to determine if this someone you want to work with. Keep an eye out for trends in the reviews and make sure that any of your concerns are covered in purchase agreement documents. It helps if your real estate agent has worked with this builder in prior sales.
Know that What You See Is Not Always What You Get
When you view a model home, know that the finish isn’t always what comes standard. The model usually has a list of add-ons that will add to the overall price of the home. When touring a model home, make sure that you know what is standard and what will cost extra. Keep in mind that the cost of certain things can change too. The price you are quoted initially may not be the same price if you decide to purchase a home.
Find Out What is Covered Under the Builder’s Warranty
New construction homes often come with a builder’s warranty. You will want to make sure you know exactly what is covered and what isn’t and for how long. Many builders will use a third-party warranty company and, in some cases, manufacturers of certain products such as windows, may have a separate warranty or guarantee and the builder may not handle those issues directly. The builder will be able to provide all of the details on what is and isn’t covered in your builder’s warranty.
Get a Guarantee
When you purchase a new construction home, most of the time, the home is not finished when you buy it. You need to make sure in your purchase agreement that there is a specified completion date. Many builders will add provisions that make the completion date dependent on permit approvals from the city or the availability of materials from the suppliers.
Shop for Lenders
Don’t just automatically use the builder’s lender, as they may not be able to offer you the best deal. Spend time researching and shopping around for a loan, that way by the time you are ready to make an offer, you have pre-approval from your own lender. Keep in mind that some builders will require you to gain pre-approval from their preferred lender. In some cases, the preferred lender is the only option.
Extra tip: Have the home inspected. Even though the home is a newly-built property, it can still have issues. You want to ensure everything is safe and up to code.
If you are interested in purchasing a new-construction home, let me pull options for you. Contact me today to get started in your home search.