Are you Considering Buying a Newly Constructed Home?
As a real estate broker, I enjoy representing and selling new construction. To me, there is nothing more rewarding than watching a buyer go through the process of picking the location, style, and finishes for their future home.
Purchasing new construction is much different than buying a previously owned home and a buyer will be much better off knowing what to expect from the beginning. For example, it's not always evident what is included in the purchase price when you visit a builders model home. In many instances, the model home will include moderate to extensive upgrades. Those upgrades or options can add a significant amount to the final purchase price. There can and usually are additional costs added for lot improvements such as views, walkout! basements, etc. Knowing what to expect early on will help you make an informed decision when purchasing new construction.
If you are seriously considering buying new construction you should first find an agent to help you. I recommend you work with an agent that has experience selling new construction. An experienced agent will make sure you ask the right questions and help you make an informed buying decision. Let's face it, buying a home evokes many emotions. It's hard NOT to fall in love with that amazing kitchen... and did you see that master suite.... You get the picture.
Here are a few tips on what you want to ask prior to making a commitment to purchase a newly constructed home:
- What is included for standards? The builder should provide you with building specifications which include a breakdown of what is included as standard options. If not, ask for them. They might not be extremely detailed, but should give you a general idea of what to expect.
- What is available and how much will it cost to add options or upgrades? While some builders will give you a list of upgrades and the associated cost, others will provide estimates. Some builders offer more choices than others and a list of upgrades can be extensive and complicated to figure out. Be aware, you might not know how much the home will cost until you have finished your selections.
- Is there room for negotiation on the price? In many instances negotiating price might not be an option. However, always ask if there are any incentives being offered. Inventory costs a builder money, they might offer discounts or incentives on homes that are move-in ready, or have quicker delivery dates. In this instance, you might not be able to personalize the home with certain selections, but you might get some nice options at a discounted price.
- Will the builder accept a contingent offer? Contingencies can be anything from financing to home sale contingencies. Whether or not a builder will accept a contingent offer depends on the builder. It has been my experience that most builders will not accept a home sale contingency, but you never know unless you ask. You might have a better chance with a financing contingency, but you better have a pre-approval. Keep in mind, some builders will only accept non-contingent offers, and if you can't or don't close, you lose your deposit.
- When will the home be ready? This can vary and range anywhere from how quick can you close to 12+/- months. A good average in this area might be around 6-9 months. The National Association of Home Builders recently posted this article - How long does it take to build a single family home? It's pretty informative and worth a read if you are considering purchasing a newly constructed home whether it be a single family or a condominium town home.
I can think of more questions, but we can talk about them when we meet to discuss your plans for buying a new home. If you would like to work with an agent who has experience selling new construction, make sure you call me 508-725-5858.
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