What To Know Before Buying A Newly Constructed Home

Posted on: 10 September 2020

Purchasing a home for the first time can be stressful, but there is a lot more that goes into purchasing a newly constructed home. Thankfully, there are a few things to know when you purchase a new home that will help the sale go smoother and leave you with the home of your dreams.

Start with Education

The first step to purchasing a home that is being constructed is educating yourself on everything there is about the process. You will want to make sure you know the contractors, floor plans, and the neighborhoods you are considering. Finally, talk to lenders to find out what their rates are and their requirements when it comes to purchasing a home that is being built. It is important to always talk to five to seven different lenders to get a good feel on what is the overall expectation in the sale.

Using a Realtor

Once you have the finances figured out and you have educated yourself on what is available, you are ready to decide if you want to use a realtor or not. Realtors have experience in negotiations and know the housing field. You will be paying them to fight for a good deal for you, so make sure you find a realtor that you get along with and you feel is not trying to just make a sale. It is also best to find a realtor that can explain things to you in a manner that you will understand, through every step of the buying process.

Actual Shopping

Shopping for a newly constructed home starts with finding contractors that you trust and come with experience. Your realtor will be a great starting point for finding a builder that can create your dream home. However, do not discount talking to neighbors in the area and reading reviews online. Negotiations are also extremely important when it comes to purchasing a house. Therefore, look for companies that are willing to not only negotiate rates but also upgrades to your home that fulfills desires.

Contracts are Vital

When you purchase a home that has already been built and owned, deeds and contracts are already in place. Purchasing a homemade from scratch will require you to document everything. Generally, you will have verbal agreements honored with respectable builders, but having it written down will ensure your ability to receive compensation if deals are not upheld. Things that you will want to have documented far exceed deadlines and financial aspects. You will also want to document what amenities and upgrades will be included in your home, as well as any guarantees that have been made by the builder.

Do Not Skip Inspection

Finally, when you are purchasing a newly constructed home, you will want to make sure it is fully inspected before the move-in date. Home inspectors can be brought in throughout any phase of the building, so you can make sure there will not be potential problems in the build process that will delay your ability to move in.

With these simple steps, you will be able to have a home of your dreams. You can spend the time while your house is being built to get to know your neighbors, instead of having to micromanage the building crew. Realtors are not necessary, but they will take the stress off of you and add the benefit of knowledge and negotiation power. Speak with a realtor to tour new homes for sale in your area.