Buying New Construction Homes
Updated: Jan 8
Buying a new construction home, What's the process? Well, if you're buying a new construction home, you are basically buying a dream. You're buying something that you hope will happen, so there's some things that I think you need to do to make sure that you're protected during the process of buying a new construction home.
Number one: #1 Investigate the builder. Is this a reputable builder? Is this a builder that's building in a community of other homes? Or is this a plot of land that you're buying and maybe this is just one house that the builder's building.
There is a number of different scenarios. You wanna make sure that the builder you are working with is able to complete the construction of the home. So make sure they have a good reputation.
Make sure that they are financed well, that they are known for building quality homes, that they can complete them on time and on budget and that this isn't their first rodeo.
The #2 second thing you need to know when you're buying a new construction home is the upgrades. Those upgrades that you walk into when you're walking into a model home, that home has been dialed to the nines and those upgrades cost a fortune. So make sure that you're falling in love with the floor plan of the home, first and foremost, the lot where you choose to build that home, and then choose your upgrades according to what The #3 third thing I recommend when you're buying a new construction home is to have your financing in order. There might be an in-house financing company that works with the builder, and they might offer financial incentives like closing costs or a loan origination fee to be paid for at closing. And that could be a great benefit to you
but you won't know that unless you have something to compare that with Sometimes they could say that they're paying for your origination fee but they've inflated the rate and they've inflated the closing costs. So you wanna make sure you're comparing apples to apples when you're choosing a lender and making sure that you're getting the maximum benefit of those potential bonuses that the builder's throwing in. have home inspections throughout the building process. This is very important. And it's often missed, especially if you don't have an agent that you're working with who can guide you in this. Make sure you have your own home inspection, So your inspector can go at different phases in the building.
My #4 fourth tip is to make sure you read that contract thoroughly. Most new construction homes and new construction builders have their own real estate contract, They dont use the standard real estate contract that a realtor would use, they're having their own lawyers draft this, and they're often very one-sided towards the builder. So make sure you read them thoroughly, know what you're getting into, and make sure you negotiate. And that leads me to my
fifth #5 and final tip; and that is to hire a real estate agent to go with you on that first visit to that new construction community. If you're unrepresented, the builder's gonna have their agent represent them, you will have no representation and you will get no benefit for not having representation. You wanna make sure you work with Realtor who has actually done some new construction in the past so that they know what to look for, they know what can be negotiated. You want a good Realtor on your side to make sure that those things are negotiated on your behalf and also so that you're protected in the case that something happens and you need to get your money back. So those are my tips for new construction! hope you found some value in these tips.
If you are interested in New Construction homes in The Danville, San Ramon, Pleasanton, Walnut Creek area check out one of our partners www.haven-development.com
If you are interested in New Construction homes in the Fremont, Newark, Union City, Hayward area call me directly: Ray- 510-932-2964