MISTAKES TO AVOID WHEN BUYING A NEW CONSTRUCTION HOME

Reblogger
Real Estate Agent with Arizona Elite Properties SA545073000

Kate has some great points and warrants are Daily Re-Blog. Bill 

Original content by Kate Steven Kate Steven

Buying a new construction home has numerous benefits, including the ability to customize your home to suit your unique tastes and needs. However, there are some mistakes that you should avoid when buying a new construction home so that you can have the best possible experience. Knowing what to avoid can make all the difference in turning this experience into an enjoyable one instead of living with buyer's remorse or regret later on down the road. This article will outline ten mistakes to avoid when buying a new construction home so that you can have the best possible outcome to better protect yourself against problems before, during, and after the purchasing process.

1) Getting in too early

One of the biggest mistakes you can make when buying a new construction home is getting in too early. This can lead to several problems, including the inability to get financing, being locked into a bad contract, or waiting for the home to be completed. You can avoid these pitfalls by waiting until the house is closer to completion.

2) Not making an offer contingent on as-is condition

Another biggest mistake you can make when buying a new construction home is not making your offer contingent on the home being in as-is condition. This means that if there are any defects with the house, you're not obligated to purchase it. However, if you don't make this contingency, you could be stuck with a home that needs repairs - and a hefty bill to go along with it.

3) Taking your agent’s word for it

One of the biggest mistakes you can make when buying a new construction home is taking your agent’s word for it. Just because they’re familiar with the builder and the process doesn’t mean they have your best interests at heart. Do your due diligence, and don’t be afraid to ask questions. Find out what has gone wrong in past projects and what steps are being taken to ensure those problems won't happen again.

4) Failing to know what’s included

Falling to know what's included can be an easy mistake for new home buyers. It can cost you time and money in the long run. Knowing the details will allow you to make a more informed decision. For example, if you want low-E glass and foam insulation windows, you'll need to buy them separately. If you're looking for appliances that are energy efficient, they will likely not be included in your purchase price.

5) Worrying about resale value

Worrying about resale value will only get you in the way of buying a new construction home. It is not worth worrying about how much the house will sell for later because it will never be worth as much as if you just bought it now. Also, while looking at your home, people can see all the flaws that need fixing. So if you're still worried about what other people think and want to make sure your neighbors approve, buy an old property instead.

6) Overestimating the price of other homes in the neighborhood

It's easy to get caught up in the moment when you're buying a new construction home. After all, this is likely the most expensive purchase you've ever made. But don't let emotions get the best of you. Be sure to research and compare the prices of other homes in the neighborhood before making an offer. If you encounter any discrepancies, be sure to ask questions so that it doesn't become a deal breaker later.

7) Ignoring HOA fees, taxes, and maintenance requirements

It's easy to get caught up in the excitement of buying a new home and overlook important details like HOA fees, taxes, and maintenance requirements. But these expenses can add up quickly, so it's essential to be aware of them from the start.  HOA fees typically range between $250-$1,000 per month, depending on where you live, while taxes are calculated as a percentage of your purchase price. Maintenance is often covered by an additional monthly fee, which varies depending on the type of property (e.g., condo vs. single-family). Be sure to discuss these types of costs with your builder before making an offer.

8) Being in a rush to buy before you find exactly what you want

It can be easy to get caught up in the excitement of buying a new construction home and make hasty decisions. However, it's essential to take time and find the perfect home for you and your family. Otherwise, you may end up regretting your purchase.  You also want to make sure that the builder has a good reputation before you start making any commitments. There are many builders out there, so do your research before buying.

9) Taking the seller’s word at face value

One of the biggest mistakes you can make when buying a new construction home is taking the seller’s word at face value. The salesperson’s job is to sell you the home, so they may not be entirely truthful about certain aspects of the property. It’s essential to do your due diligence to avoid being taken advantage of. 

For example, some buyers assume that the owner has made all necessary improvements or upgrades to get top dollar for their home. However, these are not typically included in the asking price and will cost an additional fee on top of closing costs.

10) Moving too fast

Moving too fast is one of the biggest mistakes you can make when buying a new construction home. It’s easy to get caught up in the excitement of finally finding your dream home, but taking your time and being sure you’re making the right decision is essential. Hasty decisions can lead to regret later on. Your purchase should reflect your wants and needs today and how they may change over time.

Final Thoughts

If you are considering buying a new home, you should be aware of the many benefits of such an investment, and avoid the common mistakes when buying a new construction home. To avoid these mistakes, research and be prepared to ask lots of questions. Work with a reputable real estate agent who specializes in new construction homes. Be aware of the potential for problems, and don't be afraid to walk away from a deal if something doesn't feel right. Remember that you control the situation, and don't let yourself be pressured into making a decision you're uncomfortable with. 

 

Comments (4)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Bill Salvatore - East Valley these are very important mistakes to avoid when buying a new construction home.

Aug 11, 2022 03:57 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Bill - Interesting points mentioned here.  I never thought about those things.

Aug 12, 2022 03:38 AM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is an excellent post with great information. Thanks for sharing it.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

Aug 12, 2022 06:08 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Hi,

Enjoyed your blog page, and I added you as a friend. I would love the follow back. Thanks Bill

Aug 12, 2022 06:30 AM