Top 9 things to consider when buying new construction homes
Almost two million homes are built every year in the U.S, which shows that there are plenty of newly constructed properties to choose from.
Being mindful about buying a constructed home is essential for preventing any nasty surprises and saving you a fortune in the long run. But, if you’re new to the world of recently built homes, it can feel overwhelming knowing what to do. Maybe that’s why you’re here; you’re set on buying a new construction home and need a nudge in the right direction.
Sounds like you? No worries, we’ve got you covered. Here are 10 tips to consider when buying new construction homes.
1. Hire a Real Estate Agent
Before you learn about how to buy a new construction home, you must connect with a reliable real estate agent in the area.
These professionals are essential when you’re buying a property because they will help you negotiate and give you peace of mind. But make sure you work with a real estate agent who specializes in newly built homes so that you can tap into their wealth of knowledge.
Also, in the early days, you must get approved by a lender. You don’t want to almost secure the home before realizing that you can’t afford it, so you must have a loan from a bank or another reputable lender.
2. Consider Your Timeline
Our new construction home buying guide wouldn’t be complete without mentioning your timeline. If the house hasn’t been built yet, ask for a concrete timeline as it will help you ease into the moving process. Note most homes take around seven months to a year, so consider this before signing a contract.
Budding homeowners should also factor in delays to avoid disappointment. For instance, the weather could impact the speed of the building or even supply issues. This means that if you must leave by a specific date, make sure you have a backup plan in place for security, such as a short-term rental or crashing with loved ones.
3. Check Out the Builder
Another consideration when buying a new construction home is the builder’s reputation. Deep dive into their website to learn about their past work and customer testimonials. Don’t be afraid to reach out to their clients and ask whether they’d recommend their services.
If you notice recurring negative comments, then that’s a major red flag, and you should continue your search.
4. Find the Perfect Lot
A crucial part of the new construction home buying process is finding the dream lot. Take onboard its features and how the home will be orientated, whether it’s offering sweeping views or facing the sunset. You should also factor in your property’s layout and where it’s located, especially if you need public transport.
If you haven’t already, look at the builder’s floor plan and see how it aligns with your needs. For instance, you may want an office space or an open-plan kitchen for your large family. Aside from your current situation, consider your future needs, especially if you’re having a baby or a parent is moving in.
5. Research the Neighborhood
Our favorite tip in our new construction home buying guide is researching the neighborhood. If it hasn’t been created yet, find out about the amenities, you’ll have access to, such as a gym or a local park. It’s wise to drive through the area where you can soak up the atmosphere and decide whether it’s worth your investment.
Or, if you’re moving to an established area like these neighborhoods, visit during the day and talk to your neighbors. You should also visit at night to see if there are any parties or if it’s quiet enough for your family.
6. Be Aware of Extra Fees
When you meet the builder, ask about what’s included in the price. This is to prevent hidden fees from driving up the cost, especially if it’s for unnecessary features. For instance, this may be new flooring in the entire property or cutting-edge appliances.
7. Choose the Right Upgrades
Have a list of effective upgrades, as it can boost your property’s resale value and offer an excellent ROI. Note these may be included in your home, so ask the builder for a list. If not, consider popular options like investing in energy-efficient appliances or building a patio where you can unwind with loved ones.
But avoid going overboard with the upgrades, especially if there aren’t many obvious ones in your neighborhood. This is because you may price out your property in the area, making it harder to sell.
8. Schedule Home Inspections
When purchasing a new home, it’s important to get an inspection. Find a reputable professional who can evaluate the property and pinpoint any issues. Although it’s a new build, there could be features that could affect your plans, such as being constructed on a slope or rough terrain.
9. Negotiate and Review Your Options
Before sealing the deal, review your options and figure out which one speaks to you. Make sure you choose a property that is closest to your dream home so that you don’t spend a fortune on renovations. Homeowners should also negotiate wherever they can, from floor plans to appliances, as it will help them land the best price.
Top Tips for Buying New Construction Homes
Hopefully, you’re now set on buying new construction homes.
There are many factors to consider, such as following your timeline and hiring a home inspector. Potential homeowners should also research the builder and review their options before signing a contract. Good luck!
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