Overview

The idea of buying new construction has its many appeals from being able to make everything your own, not having to deal with the previous owner’s mistakes, and everything being brand new.

While all of this sounds great, you should be well-prepared to buy a new home and know the costs you are getting into from upgraded features to landscaping. Walking into a model home has great emotional appeal. These homes are well staged and usually feature all of the upgrades.

Below is a brief summary of what you should be aware of and how we can assist you at no cost to you.

Attention to Detail Matters

Buying a newly constructed home requires almost as much attention to detail as buying a previously owned one. Inspect a new home carefully, as it can have hidden defects from the builder just as much as a resale home can have from the previous owner. There could be electrical issues, plumbing issues, cracked foundation and other items that are discoverable through a home inspection. Also pay attention to the lot that you are looking to purchase, it’s location, and proximity to other homes. The model homes usually sit on premium lots. To protect yourself, research the builder’s reputation along with the subcontractors used before you commit to a purchase. Lastly, pay for an independent inspection with someone who is licensed and not affiliated with the builder. Sometimes two inspections may be worthwhile, including one after construction and one after all upgrades are installed and completed.

Know What’s Included versus an Upgrade

The model homes will be full of upgraded features; however, these are all added cost to the base price you may be looking at for the floor plan of interest. Usually, the builder has a mark-up on these upgrades, so be prepared for the costs to add up quickly and when to cut out certain items that could be added on or upgraded to at a later point in time. When it comes to upgrades, select the ones that will add the most value to the home first and appeal to the largest possible audience of potential buyers down the road.
• Home Warranty – Review the home warranty that is offered, what is covered, and what additional add-ons can be included for additional costs. Different items will have a different length of coverage from the HVAC to plumbing, windows, etc.

Construction Timeline and Future of the Neighborhood

Understand how long the neighborhood will be under construction, what does the future of it look like including all amenities and when will those be built. If you are buying during an early phase of construction, you will be subject to a lot of construction noise that could last for a couple of years and many planned amenities could be years in the making that you may not get to enjoy anytime soon.

Hire Independent Representation

Most builders offer a commission to real estate agents who walk a buyer into a sales office, so this is not cost to you as a homeowner. Hiring an agent will allow you to have proper representation and someone who can walk you through all the items to complete. The agents in the sales office represent the builder and do not have your interest as their top priority. Separately, the financing offered through the builder may not offer the best terms, so obtain at minimum two other financing offers to compare against that of the builder.