Considerations Before Buying New Construction
Are you thinking about buying a new house? There are many things to think about when buying new construction, and it can be a daunting prospect. You are making a huge financial commitment that could have a significant effect on your future.
There are many factors you need to think about before you begin your property search. If you have a better understanding of what you are looking for and are willing to do some research, buying new homes can be a lot less daunting.
There are some truly essential considerations when buying a new construction home. Let's take a look at the most crucial so you can make an informed decision.
Setting Your Price
Whatever type of home you are looking for, you need to set your budget. Do you know how much you can afford to spend? Getting preapproved for a mortgage should make things clearer so that you know your spending limit.
If you have realistic expectations of what you can afford, you won’t waste your time on properties that stretch you too far financially. It isn't just the mortgage payments you need to consider. There are utility bills, property taxes, maintenance costs, and living expenses, to name just a few. And don't overlook your moving expenses either.
You will probably want to carry out some improvements when you move into your new home as well. But if your finances are pushed to your limit, this isn't going to be possible.
Picking Your Location
You are likely to have many things that influence your choice of location. Perhaps you want to be near friends or family, maybe your journey to work is an important consideration, or you are looking to live in a certain school district.
If you have many competing reasons that pull you in one direction or another, you may need to compromise the location. This could mean buying a new house in an area you know well or making a fresh start in a new neighborhood.
If you don't know the neighborhood you are thinking of moving to, you need to be more careful to make sure it is right for you. Visit the neighborhood at different times of the day and the evening to find out what it's really like living there.
And when you do find a home in a neighborhood you like, think about how close it is to busy roads or possible sources of activity. If you want a home in a peaceful setting, make sure it's not on a flight path or near a stadium.
Do You Buy Land or Purchase From a Builder?
One of the more significant decisions when buying new construction is whether you buy land and build your own custom home or go with a builder constructing homes. Of course, there are pros and cons to each of these choices.
When building your own home, you have the ability to construct exactly the way you want things. While some builders offer custom features, not every builder will let you do things exactly the way you want them.
The builder you like might not want to build on your land. Some builders shy away from that. Maybe the builder you like only has homes available in a subdivision, and you would prefer a more private setting?
Some folks can't stand the thought of living in a cookie-cutter neighborhood where all the lots are an acre or less.
What Size House Do You Need?
If you are buying new construction, you might have more say in the size of rooms and number of bedrooms, but whatever type of home you are buying, you will need to know how much space you require.
The number of bedrooms and bathrooms, size of living rooms, and space available in the kitchen could all be things that help you decide the sort of house you want to buy. This will help you reduce your search to a smaller number of homes, making it easier for you and your real estate agent.
If you ideally want more space, but there aren't suitable properties in the area you want to live in, you could purchase a home that gives you the possibility of expanding later.
Sometimes people buying new homes are looking to either downsize or give themselves more space. If you are downsizing, you could find that you have more furniture than space to put it, and you need to plan for that.
Alternatively, if you are moving to a larger home, you could need to buy more furniture and have the budget to pay for it.
The Reason for Buying the Home
What you plan on doing with the home will change many of the decisions you make. If you were buying an investment property to rent out, you might worry less about the condition than if you were buying a home to live in. The purpose you intend for the property will also help you decide on the type of home you are looking for.
Buying New Construction Homes
When buying new construction homes, you can have a lot of influence on how the house turns out. Changes can be made so that the property better fits what you want from a home.
There can be downsides to new construction, though. If you aren't careful, however, the finished product might not meet your expectations. If this is the case, costs could increase if you need to make changes or alterations after the home should have been finished.
This scenario can be avoided if you have good communication with your architect and contractor.
If your new construction is part of a larger development, you might find you have less say hey in how things turn out. This could be more of a problem if the home is a townhouse or a unit in a complex.
Timing Your Purchase
Planning the best time to buy a new home could be essential. If you are selling your current home or coming to the end of the lease, buying at the right time could reduce your expenses.
If you cannot sell your present home before you need to pay for the new one, you could need a bridging loan. This will be an extra unwanted expense that you may avoid with better communication between you and the seller.
Timing a closing with traditional time frames can be challenging when purchasing new construction. You should have a well-mapped-out plan ahead of time. When the timing does not work out the way you expect it to, you'll end up in temporary housing and possibly having to put your things into the hands of one of the top storage companies.
How Long Do You Want to Live in the Home?
If you intend to live in the home for a very long time, you should probably do more to make sure you find exactly the right home. But if you only anticipate being in the home for a year or two, perhaps you can be more flexible in your choice.
Viewing lots of different properties that aren't quite right for your requirements can begin to get rather disheartening. So to avoid wasting time on properties that aren't suitable, you need to be more discerning. If you focus your search more closely on houses that meet your requirements, you can prevent wasted journeys to homes that are completely unsuitable.
If you can't make scheduled viewings or clashes between properties you want to look at, you can always arrange a private viewing at a more convenient time. The seller’s real estate agent will be happy to arrange this as it means there is a greater chance of selling the home for a better price.
Buying a new house can either be an exciting experience or a real nightmare. If you are working with a builder, it is imperative to do lots of due diligence. Most of the downsides of building a home happens when you go with the wrong building contractor.