Welcome to our New Build or New Construction page, here you’ll find 10 things you MUST do when Buying a New Construction Home. Please reach out to me, (EJ) today so I can give you some additional information on “Why” use a Realtor like myself when buying a New Construction Home. There is savings to be made and other intricate parts of the New Construction transaction that can benefit you in the long run.
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10 things to do when buying a newly built house
The following is a guide to help you buy a newly constructed home:
- Use a real estate agent. It costs you nothing since the seller pays the commission. An agent that works regularly with builders and knows the newly built neighborhoods can provide helpful information.
- Do your homework on the builder of the community you are interested in. A good amount of the builders have been in business for many years and build quality homes- however there could be some not so reputable people out there. Check review sites, state licensing boards and the local court records to see whether the builder you’re considering has run into any trouble, including lawsuits, complaints with licensing agencies and disciplinary actions by state and local agencies.
- Research the community and talk to previous customers. Before you buy, find out as much as you can both about the area and the subdivision or condo itself. Visit at different times of day, and talk to residents about what they do and don’t like.
- Choose square footage and location over upgrades. Think about how you want to spend your limited budget. You can never change your home’s location however you can upgrade flooring later. Apply that logic to other choices as well. If you’re choosing between a fourth bedroom and granite countertops, you probably should choose the extra bedroom, which is much more expensive to add later than granite counter-tops.
- Don’t over improve. Choose a home size and options comparable to those of your neighbors. It’s like keeping up with the Jones however you don’t want to get too far ahead of them. Make some upgrades that you want to live with however remember you want to stay in a comparable range so you don’t price yourself too high for the area around you.
- Understand your floor plan and room sizes. Many builders offer virtual reality technology that lets you see what’s going to be built, but a better option is to visit a home with the floor plan you want, even if it’s still under construction or in a different community
- Have a lawyer review and vet the contracts. Contracts for new construction are complex. As with all legal affairs, it makes sense to have an expert look them over before your sign.
- Ask about warranties. Most builders offer warranties on materials and workmanship. Pulte and its companies Centex and Del Webb, for example, offer a one-year warranty on workmanship, a two-year warranty on mechanical and electrical elements, five years on water leaks and 10 years on structure. Make sure you understand what is and isn’t covered and what process you need to follow to get something fixed.
- Get a home inspection. You may think you don’t need to have a newly built home inspected. But getting an independent inspection before closing is always a good idea, and you want to be there so you can learn more about the home. Newly built homes can have some problems just like any other home. It’s always better to know what is going on regarding your new home before papers are signed.
- Get multiple bids from lenders and closing agents. Your builder may have a preferred lender and a preferred closing agent, and you may be offered discounts and other incentives to use those professionals. They may or may not be your best choice. Get quotes from additional lenders and closing agents, and then decide which the best option is for you.