5 Things You Should Know When Buying New Construction
You’ve got your eye on a location and neighborhood that is PERFECT for your family. Your only hangup? The homes are still under construction. No problem! Turn that hangup into a “Heck ya!” with a few questions to ask before buying new construction.
New construction homes can have “teething issues”
While a brand-new home might look perfect, it’s not uncommon for new homeowners to experience minor problems in the first few months. This could include creaky floors, settling foundations, or minor leaks. These are typically covered by builder warranties, but it’s essential to keep an eye out for them.
Financing can be more complicated
Obtaining financing for a new construction home can be more complex than getting a mortgage for an existing home. This is because the financing process involves several stages, including pre-approval, construction loan approval, and final mortgage approval. Working with a lender experienced in new construction financing can help streamline the process.
New construction homes can have hidden costs
n addition to the purchase price of the house, new construction buyers should also budget for additional expenses like landscaping, window treatments, and appliances. It’s important to discuss these costs with the builder and factor them into your budget before signing a purchase agreement.
The final price of a new construction home can be negotiable
Although builders might not advertise it, the final cost of a new construction home can often be negotiated. This is especially true if the builder is trying to sell the last few houses in development or is experiencing a slowdown in sales.
The builder’s reputation matters
When buying a new construction home, it’s essential to research the builder’s reputation before purchasing. Check online reviews, ask for references, and research their past projects to ensure that they have a track record of delivering quality homes and standing behind their work
Whether you buy an existing home or new construction, it’s always a good idea to have a realtor on your team asking any questions you may overlook. Know someone looking to buy or thinking of it yourself? I’d love to help.