Tips On Buying New Construction Homes
New construction homes offer buyers many advantages, the first being that you start off with a blank canvas. You needn’t worry about inheriting the previous owner’s tastes in paint, carpeting, or appliances. Likewise, you already know that everything in the home is new so you don’t have to worry about making repairs. All of these things are reasons why new construction homes are so popular. When buying a newly constructed home however, there are some things that can help ensure that your new home is everything that you dreamed it would be.
- Hire an Agent of Your Own – Regardless of what may be said, builder’s sales agents are paid by the builder to represent their best interests. Hiring a buyer’s agent to work on your behalf will negate any of the high pressure tactics used by many builder’s agents in order to get you to sign the contract. Since they are being paid by the builder, a representative who is working for your best interests can save you money.
- The Builder’s Lender Isn’t Always The Best Option – Many builders prefer that you use their lender because they can then be kept fully aware of your progress, but their lender may not offer the best deal. Consider other sources when seeking out a lender, such as your personal credit union or bank. In many cases they will offer attractive rates and terms based on your history with them. Your agent may also be able to provide you with a list of lenders.
- Get Verification for Extra Options and Upgrades – Builders usually offer various upgrades and options, but bear in mind that these extras often make up the highest profit margin for builders. Some builders are able to sell their homes at nearly a bare construction cost due to the fact that the bulk of their profit is made in upgrades. Once you’ve decided what you want, find out whether your lender will finance all of your selections. If you know a handyman, it may save money to purchase the upgrades and install them yourself. Also ask the builder if you are held liable for items that cannot be returned to the supplier.
- Look Into The Builder’s Reputation – Word of mouth spreads rapidly and talking to neighbors and previous clients can tell you a lot about how the builder operates. You can also check with the BBB to see if there have been previous complaints about workmanship, etc. Lastly, look at the construction yourself. If the workmanship looks sloppy or haphazard, think twice before signing anything.
- Hire a Reputable Home Inspector – This is a must whether you are purchasing a new construction home or a centuries old farm house. Having an inspector go over all the details can save time, money, and headaches in the long run.
New construction homes are wonderful and purchasing one is exciting, but they aren’t without their pitfalls. Going into the transaction with your eyes open to potential problems will ensure that your new home is just the way you want it.