What To Know When Buying New Construction Home
August 16, 2021
Buying an existing home is not everyone’s cup of tea. After all, the feeling after buying a new construction home can be comforting knowing everything is brand new! However, it is important to remember that just because it is newly constructed doesn’t mean you don’t have to be careful when inspecting it.
In this post, we will go through the 5 important things to know when buying a new construction home.
5 Things To Know When Buying A New Construction Home
1. Research The Builder
You don’t want to end up buying a home that doesn’t deliver on what was promised. Do you?
This is the reason that the reputation of the builder becomes of utmost importance here. You need to conduct thorough research about the builder. Don’t be afraid to ask the builder about the success of their projects in the past.
If possible, you can even take a look at some of their previous houses in person to see if the quality matches what you have been promised or not. You can also…
- Conduct an online search, and look for reviews and testimonials
- Connect with the residents, if possible, using social media – they can prove to be the best source of information
- Ask your real estate agent about it
Once you have got answers that satisfy your requirements and you’ve witnessed the success of delivered projects by the builder, only then should you move forward with your decision.
2. Be Creative In Your Negotiations
Negotiations are not always about the price.
This is the second most important thing to remember when buying a new construction home. There is a high possibility that the builder won’t budge on the price. They are reluctant because they must maintain a certain value in a particular neighborhood.
Does that mean there’s no scope of negotiation? Not really.
The solution lies in being creative with your negotiations. Instead of asking for a lower price, you can negotiate for better upgrades, like more lighting, kitchen upgrades, a deeper basement, innovative storage options, and so on. Builders generally don’t shy away from giving upgrades, you just have to ask for it.
Having an expert by your side for negotiations can prove to be a blessing in such scenarios. For instance, a Negotiator Recognized Partner (NRP) can negotiate on your behalf, and get what’s best for you, so that you don’t have to worry about the negotiations.
3. Get Everything In Writing
Words spoken may fly through the air, but words written will always be there.
This phrase is apt for real estate dealings, where false promises are common. Although respectable builders will always honor what they say, it is always advisable to get in writing whatever is being promised to you at the time of the deal.
This is where having an experienced real estate agent becomes vital. The real estate agent can navigate you through the entire process while making sure that everything is in order and writing by the builder.
If you are wondering how you can find an experienced real estate agent, you can check out our blog here.
Timing is another important factor you need to take into account when wanting a new construction home.
Typically, it can take from three to seven months to construct a new home, depending upon its size. However, the timeline can become unpredictable. Factors like weather, logistics, permits, approvals, and sometimes even vendors can cause delays.
Ask the builders for a completion date.
After all, you will have to make living arrangements according to that timeline.
For instance, if your rental agreement is ending before the completion of your new construction home, then you will need to look for a place to live during that time. And, if the agreement ends after your house is finished, then there may be months where you pay rent while living in your new house.
5. A Home Inspection
Whether you are buying a new construction home or a fixer-upper, it is always important to have it thoroughly inspected.
It is the responsibility of the builder to take care of city inspections and county inspections. Although most reputable builders maintain a strict quality check as they are constructing a house, it is also a good idea to hire a licensed home inspector to thoroughly check the house before moving in.
If You Want More Home Inspection Tips, Then Check Out:
Home Inspection Tips for Buyers: What To Look For In A Home Inspection
Final thoughts on a New Construction Home
As it has been said many times, home buying is a tricky process. You have to remain diligent and thorough in your approach right from searching for the options until you close a home. While buying a newly constructed home can help you avoid several worries that come with buying an existing home, it certainly requires you to be meticulous while evaluating everything. And, the five things shared above will help make your journey to buying a newly constructed home a smooth one.