Tips For Buying New Construction Homes
Thinking of buying a brand new construction home? They actually come with tons of perks, such as energy efficiency and no worn-down parts in need of repair. Additionally you’ll be able to make it exactly the way you really want it to be. However, there are some things to think through when it actually comes to new construction, such as budget as well as timing. Following are some of the big things to consider when deciding if new construction homes are right for you or not.
Tips on how to really purchase new construction homes:
Understand what a brand new construction house is
A new construction house is actually a home where the buyer is the very 1st person to live there after it’s built—but it can happen in a number of ways. A buyer may actually purchase their own plot of land and contract with everyone needed to build a custom home, which includea an architect as well as a builder. On the opposite end of the spectrum, a buyer may actually purchase a completely built home as well as the property it’s on from a developer. The home buying process can actually fall somewhere in between as well. For instance, a buyer might purchase empty land from a developer and then make a choice from a range of home design options, and then a builder will build the home.
Know your customization options (and costs)
Most new construction homes offer one of the following mentioned customization options:
- Built on spec: the home is completed and may be purchased as is.
- Semi-custom: The structure is usually built, but you’ll be able to customize it in some ways.
- Full custom: You have a say in everything.
Once you determine which level you’re comfortable with, ensure you know what comes standard with the home and what costs extra. Then actually get it in writing. You’ll actually be bummed if the quartz counters as well as hardwoods you really loved in the model come with a additional hefty price tag.
Be aware of latest construction timing
Besides cost, another factor to really consider when choosing a customization option (and whether to go with new construction at all) is timing. Overall, the timeline for building a home are actually generally unpredictable, due to weather, vendor delays, as well as waiting for logistics such as the permit approvals to happen.
Usually, the further along the home is actually within the building process when you purchase it, the faster the process should really go. On an average, building a home can take from three to seven months, depends on the size, but it’s not uncommon for it to actually take nearly a year if any delays happen along the way.
If you’re considering new construction, choose the build option that fits together with your current living situation. If it’s flexible enough to permit for a lengthy—and potentially unpredictable—lead time, building from the ground up might actually be for you. If not, a semi-custom or built-on-spec home could really be a far better choice.
Get your own agent and lender
Buying new construction is just like any other home purchase: you first need a team with your own interests at heart. Research, interview, and hire your own real estate agent, and apply to multiple mortgage lenders to actually find the best deal, just like you’d with an existing home purchase.
Usually, builders have an agent on site and preferred lenders, and it’s quite common for them to suggest buyers just use their team. But it’s good to do your own research. A builder’s lender may actually provide you with incentive money, however an outside lender may charge you less in points, which means bigger savings over the life of your loan.
Research and choose a builder
You need to check out your local home builders’ association in order to actually search for builders in your area. Also, check up on the new homes section of your local paper’s real estate pages. Use your list of builders as well as homes to:
- Find a locality with several new homes and drive by. Look into the quality and style you prefer best.
- Research builders online. You’ll be able to find local business reviews, public records as well as feedback from the better Business Bureau.
- Check out their websites as well as social media pages for more information, photos as well as interviews with staff and clients.
- Interview a couple of builders and obtain names of references.
Make a wise budget
When you pick a semi- or full-custom new construction home, it’s easy to accidentally spend an excess amount of money, one customization option at a time. Be realistic about how much house you’ll be able to afford, and take into consideration costs that are easy to overlook:
- Landscaping: You’ll likely need to build your lawn after you build your house.
- Homeowner’s Associations: If you build in some neighborhoods, you could easily owe monthly homeowner’s association fees—and you may be bound by their policies so as to meet certain property standards, which can actually make costs go up.
- Furnishings: Builders will install your bathroom vanity, but probably not your toilet paper holder or towel rack, so those won’t be covered in your contract. Ensure you actually budget for those smaller furnishing in every room.
Understand your warranty
Typically, warranties on new construction homes offer limited coverage on workmanship as well as materials. Some coverage is actually offered for just the 1st year (for example, for siding, doors, as well as trim); some for 2 years (often for
plumbing, HVACC as well as electrical), and some for a decade for major structural defects.
You really need to understand exactly what is included and what is not, and there is nothing to be afraid to ask for changes or concessions if you’re really not comfortable with the language.
Get home inspections
Home inspections aren’t just for existing houses. In fact, when actually buying new construction homes, you really should get 2: one before the walls are closed, and the other one after. It’s much more cheaper to fix issues such as electrical or plumbing before the drywall goes up.
Your 2nd home inspection should actually come before your final walk-through with the builder. Just try to hang out with the inspector while it happens. They’re actually often able to offer you maintenance tips as well as handy things to watch for in your new home.
You need to make sure that you put a home inspections contingency in your sales contract. This way, you can actually back out of the deal if something major is wrong.
If the home inspections go really well, you should actually be on course for the closing on your house, just like any other home purchase. So you need to be prepared with your closing costs and also your favorite pen, and soon you’ll be signing your way to home ownership.
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