Being in the market for a new construction home is an exhilarating place to be. You’re starting off in a brand new, sound structure built to the latest codes with the most current design and energy efficient features and built on a lot of your choosing. In addition, it is a blank slate that you have a chance to customize to your tastes and lifestyle. While there are many similarities between purchasing a new construction home vs. an existing home, there are nuances and additional factors to consider when buying a new construction home.
Engage the services of a real estate agent who specializes in new construction home purchase. An agent with this specialty will have his/her finger on the pulse of the new construction market and be familiar with how area builders operate. If there are deals to be had, a good new construction agent will find them. An agent will operate on your behalf, looking out for your best interests in the home buying process. When contract time comes, the agent can review it with a discerning eye before you sign, making sure that the contract encompasses any verbal agreements made and it includes any contingencies, such as a home inspection.
Understand that negotiating takes on a different meaning in a new construction deal. Builders are likely to have set prices for homes in a given development. Negotiating prices for one buyer could be a slippery slope for a builder. However, there are several other items that could be up for negotiation such as cabinetry, countertops, lighting, paint colors, blinds, smart home features, home warranties, warranties on appliances, a year of homeowners association fees, and help with closing costs. To get an idea of what might be available, take a look at model homes. These are often outfitted with upgraded features.
Research financing. A builder may provide financing along with incentives for using his/her preferred lender that could provide a buyer with significant savings. To get the best deal, an informed buyer will research other mortgage options and compare them to what a builder is offering.
Like any other home buying process, buyers submit an offer that will either be accepted, rejected, or countered by the builder. Having a real estate agent with new construction expertise is invaluable in navigating this process.
Once a contract is reviewed thoroughly and signed, have patience. It takes time to build from the ground up, and there are factors like weather, the supply chain, and inspections that can slow the process. That said, the benefits of buying a new construction home are well worth the wait.