New Home For Sale
There is a difference between buying a newly constructed home and a previously-owned home. When you are buying a new construction home you are buying from the builder, not an individual homeowner. For many, this is an ideal method for buying a home. You know that the home is newly built and won’t have traditional “wear” that can be seen in a pre-owned home, and everything will be new – the air conditioning unit, the water heater, the roof, the appliances, the floors, etc. When items like these new features, you know they are under warranty and should last a long time before needing servicing or repair.
If you are planning to buy a newly constructed home, here is a step by step guide for you:
Step 1: Weigh Your Options
What could be better than living in a newly constructed house where everything is so shiny and new? There are 3 options when it comes to buying a brand-new home:
Option 1: Buy a home that’s already built
Option 2: Buy a semi-custom home
Option 3: Buy a completely custom-made home that’s designed just according to your needs
Before you get attracted by these options, evaluate your financial situation as well as your lifestyle. After all, the new house is only going to be enjoyable if it fits your lifestyle choices. Ask yourself the following questions:
- Does the pre-built home have all of the amenities you are looking for?
- Can you affordably customize the home?
- Would it be more or less cost effective to buy a custom-made home or buy a pre-built home and renovate later?
- Often pre-built homes are a part of a suburban community outside of metropolitan areas – this may require additional travel and limited privacy with a neighbor close next door.
- What warranties on workmanship or appliances may be offered or are different between a pre-built home and one you have custom built?
- Will your selection affect your home loan requirements?
The answer to these questions will help you make the right decision.
Step 2: Check The Neighborhood Thoroughly
If you are thinking about buying in a new subdivision, The Lieberman Team can help you set up a couple of home tours. It is important to seek your own real estate agent when considering buying a brand-new home because the listing agent works for the builder, not for you. The builder’s listing agent is going to present the home in the best light and make it an attractive sale. Having your own real estate agent will help you to remember your home ownership goals – does it have all that you want? Is it within your budget? Is it where you said you preferred to live?
Also, having your own real estate agent will help to prevent any miscommunication in your wants and desires and what will actually be delivered once the home is built. Some neighborhoods may place restrictions on what can and cannot be built. If something you desire to be included in the build out of your home is actually restricted, your real estate agent can inform you of the conflict without trying to sugar coat it like the listing agent may in order to keep the sale.
Evaluate the neighborhood
When you think you have found the right location it is best to make sure it is everything you hope and think it is. As your real estate agent, we can help you uncover more about your potential neighborhood. Some of the things we recommend doing before agreeing to buy a home are:
- Take one or more of your family members with you and drive around the neighborhood to check the amenities.
- Try to talk to the homeowners who are already living there. Ask them about their experience.
- Visit the model houses.
- Ask about the rules of the homeowner’s association and its fees. Some rules are strict such as exterior paint color restrictions, types of fencing, number of vehicles, planting vegetables, or even the installation of solar panels. Some HOA rules could be a deal breaker for you.
- Ask about the cable and internet service. Knowing who provides to the area can help you estimate costs and see what the company’s customer service is like.
- Read everything about the zoning laws and find out how frequently they change.
- You can also visit the office of the city planner for more information about a particular location.
Do some homework on the builder too. Check for any better business bureau complaints filed against the construction company or check with your real estate agent about the builder’s reputation. It’s pertinent that you visit the previously constructed homes of the builder to see the craftsmanship of the homes. If possible, speak with the homeowners and see if they have any complaints about how the home was built or if it has had any trouble withstanding the test of weather and use.
Step 3: Know what’s standard and what’s extra
Make yourself familiar with the amenities and upgrades. Amenities are the benefits meant for the entire community like gated entrance, clubhouse, fitness center, etc. Upgrades, on the other hand, are extra features that are meant to enhance your home.
List everything that you are interested in adding to your new home. Here are some things you must consider about the upgrades:
- Most new homes include the option to provided appliances. If they do, make sure you check the models of the standard appliances being offered. If you greatly enjoy cooking, then you’ll need more than just a basic, standard stove.
- Although the upgrades may be enticing, first check to see how the added costs will affect your loan. You don’t want to lose your dream home before you even move in.
- Upgrades can be overpriced in order for the builder to cover labor costs and profit. When it comes to some upgrades, consider adding them yourself whenever possible to save on some fronts.
Step 4: Get Your New Home Inspected
Once you have selected the home you want to buy, go for a final home inspection. Even though the home is newly constructed, it doesn’t mean it’s free from defects or poor workmanship.
It is best if you can get the home inspected during the building phase. This allows you to catch issues before they are covered up and cause more expensive repairs later in life. The builder shouldn’t object to a private inspection and may have even had a formal inspection done. Failure to allow an inspection or provide inspection documents can be a red flag. Your real estate agent can help you find a reputable home or building inspector.
Most new homes come with a limited home warranty from the builder. Any major defect in the structural integrity of the building is subject to a repair but may be subject to time. Get all the information you can about this warranty before committing to buying the home. We can assist you in collecting this information. As your real estate agents, it is our job to not only help you find a home but to also help you make a fully educated decision before buying.
Step 5: Time To Close The Deal
Once you are completely positive that you have found the new home option you have been looking for, we will help you contact the builder’s listing agent and begin the closing process. We’ll make sure that anything you were promised is in writing and help you navigate the paperwork. Once they buying process is complete, the builder will set to work in building your dream home or hand over the keys to one that is already complete!