So you’re in the market to buy a new home — awesome! I love new builds! You’ll be surprised to know that purchasing in a new development is a bit different that your typical resale escrow. Here are six tips to help you with your purchase.
1. Research the builder
One of the most important things you can do when purchasing a new construction home is to research the builder. Look for online reviews and talk to previous buyers to get an idea of the builder's reputation and track record. You may also want to drive by some of their previous projects to get a sense of their work. Doing your due diligence can help you avoid potential issues and ensure that you're working with a builder you can trust.
2. Come with your Realtor on your First Visit
If you’re working with a Realtor or plan to - make sure they’re with you on your first visit. Most builders require a broker to register their clients (you) on your FIRST visit. If they’re not there, builders may not to compensate your agent for their hard work.
3. Review the contract carefully
Builders don’t typically use your standard C.A.R. Forms. They’re custom contracts drafted by an attorney. While there are some similarities, make sure you understand all the details, including the home's features and finishes, warranty, contingencies, and timeline for completion. Be sure to ask the builder any questions you have before signing the contract, and don't be afraid to negotiate on certain terms if necessary.
4. Visit the construction site
Once you’ve found the perfect home and are in escrow, visit the construction site regularly to monitor progress and ensure the work is being done according to plan. This can help you catch any issues early and make any necessary changes before it's too late. It's also a good idea to get to know the builder's team and build a rapport with them, so you can communicate any concerns or issues that arise. Timelines in new construction are more like guidelines and often shift around.
5. Confirm Included Finishes vs Upgrades
Many new construction homes offer customization options, such as finishes, flooring, and fixtures. Consider your options carefully and choose the features that best suit your needs and preferences. Most model homes you walk through are upgraded units that don't come included in the listing prices you see - this goes for appliances as well! Be sure to confirm what's standard vs upgrades. I’ll cover the pros and cons of upgrading via builder vs hiring a third party contractor in a later post.
6. Budget for additional costs
There may be additional costs beyond the purchase price, such as upgraded finishes, appliances, and window coverings. Be sure to budget for these costs and factor them into your overall home-buying budget. You may also want to consider hiring a professional home inspector to review the property and identify any potential issues that may require repairs or upgrades.
Being the very first owner of a brand new, beautiful turnkey home is exciting! With a little foresight, you can ensure that you get the home of your dreams. Good luck and happy house-hunting!
Need help finding a new home? Let's connect!
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