In reading the local newspaper yesterday, I came across an article that caught my eye, and later discovered that it came from our own Arizona Association of Realtors. It basically discusses the way buying a new home from a recently developed subdivision is different than buying resale, and provided four great tips for the buyer.
Tip #1 - Read the subdivision public report
A new home seller is required by law to provide the Public Report to any prospective buyer. In it will be information about adjacent land uses, taxes, assessments, nearby schools, transportation, and emergency services. Things any new home buyer would probably want and/or need to know.
Tip #2 - Read the CC&R's
Most of the new homes being built will have a homeowners association. The Covenants, Conditions, and Restrictions empower the HOA to control certain aspects of a home's use within that community. Some restrictions to consider may regard landscaping, RV parking, and play equipment, as well as painting and storage of items.
Tip #3 Read the Purchase Contract
Generally, each new home seller has their own purchase contract. It is not the standard form you see in the resale market. That makes it important to read completely. You should also find out where the earnest money will be held, when the home will be completed and move-in ready, and what happens if there is a problem, or if there is a need for dispute resolution.
Tip #4 TALK TO "YOUR" REAL-ESTATE AGENT (This one happens to be my favorite)
The agents working with the model-home center, or new home builder typically represent only the seller. It is recommended that buyers of new homes consider working with a buyer's agent from the beginning of their new home search. A buyer's agent can assist the new home buyer in the entire process; help negotiate the purchase contract, make sure the buyer receives all information, answer any questions, and offer additional resources that can be invaluable.
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