Buying New Construction
Thinking about becoming a homeowner? One choice is to purchase new construction or a new build. Depending on the community and the builder they may have spec homes or new homes that are either complete or have already been ordered to be built. This type of new construction does not allow for any modifications. Or you may choose to build a from the ground up. They will allow you to choose the lot (with some restrictions), one of their floor plans and depending on the builder will allow some customizability such as flooring, cabinets, plumbing and electrical fixtures and so on. This will be a discussion to have with the builders on-site representative. Either way it is recommended to have a Licensed Real Estate Agent represent you before visiting the builder. There commission will be paid by the builder and your Buyer's Agent will represent you in the process.
Pros of Buying New Construction
One of the big benefits of buying new construction is it's new. The house will not only be built with new materials, have new appliances and fixtures. That also means it will be more energy-efficient than an older home. Including the Heating and Air Condition system and windows. This can save you money in utility bills in the future.
New construction will also be built to to todays codes and standards. Many times people marvel at the craftsmanship of an older home. But if you were to remove the sheetrock and inspect the electrical work or plumbing you may find some issues.
New construction typically comes with a construction warranty. Most builders cover the material and workmanship for one to ten years. Be sure to get any it in writing what is covered and for how long.
With new construction many times you are allowed some custom items like finishes, flooring, cabinets and color choices. However the builder may require you the buyer to pay additional, non-refundable deposit for some upgrades.
Cons of New Construction
Before signing on the dotted line do your homework on the builder and community. Check online reviews and even chat with some of the neighbors about the quality of work and ease of getting problems resolved.
When previewing the model home in a community keep in mind this home will have the best features, fixtures and appliances the builder has to offer. Also many builders will have off site design centers with design professionals to help you pick our choices. But be careful not to get carried away by adding items and get a price if it's an upgrade.
Currently it takes approximately 9 months to build a home once the contract has been signed. However there are many things that can effect the closing date including weather conditions, availability of material and craftsman. So be flexible with the closing date.
Buying New Construction
So you have weighed the pros and cons of purchasing new construction over resale. Now it's time to get serious. First find a Real Estate Agent or Buyer's Agent to represent you during the buying process. An Agent familiar with the area and the new construction process. This person will not only represent your interests but will guide through the process making recommendations. As an added bonus your Buyers Agent commissions will be paid by the builder. Keep in mind that the on-site sales person works for the builder.
Once you have identified the home and neighborhood you which to purchase the next step is financing. You Buyers Agent can recommend a mortgage person, you can check with your bank or credit union or work with the Mortgage Company the builder recommends. It is best to shop around not only for the best rates but also best fees. Many times if you work with the builders lender they will pay some of your closing costs, So it's a good idea to get a list of fees from each lender before making a decision.
Home Inspection
Before purchasing any home regardless of new or resale it is always advisable to hire a Licensed Professional Home Inspector. Chances are the home being built will be inspected periodically by a local building inspector during the different phases of construction. However it's always a good idea to have a second set of eyes. When hiring a home inspector for new construction there are two types of inspections. One the inspector will come to the home during the different phases. The other type of home inspection will be done when construction is complete and prior to closing.
Conclusion
Buying a home can be exciting and sometimes stressful. So it is best not to go it alone. Having a Buyers Agent familiar with new construction working for you can be an asset. Be sure to do your homework and research. For more information about buying new or resale home contact Allen Deaver of Asset Realty today.
