Buying New Construction

Written By: Miller and Associates Realty On: 23rd June 2015 Under: Uncategorized

When contemplating the purchase a new construction from the builder, there are a few things to consider.

Do your research on the builder. Research the builder online for testimonials, reviews and news. While many builders will have happy and unhappy customers, look for trends in the reviews.  Make sure you address any concerns in writing, and require the builder to add to the purchase agreement.

Find a great agent. Many homebuyers feel they don’t need an agent when negotiating with a builder. An agent will represent your interests, not those of the builder. Confirm with your agent that they have experience in new construction and that they are not affiliated with the builder. Take your agent with you when you visit the site; they can advise you on making choices that can affect your home’s future resale value.

Be creative during negotiations. Your agent can advise you about the builder’s prior sales and other pertinent information.  Builders are often hesitant about lowering prices as thissets a precedent for future negotiations; however, they are often willing to pay closing costs or perform upgrades at no additional cost.

Get everything in writing. This may seem obvious, but if you’re purchasing a home that’s not yet complete, it is important to include deadlines and other specifics in the contract. The builder should include how the home will be finished, and what (if any) reparation will be made if construction is not completed on time.  Verbal conversations are not binding, so make sure to put everything in writing and have it signed by both parties.

Get the home inspected. Some buyers feel that buying new construction makes an inspection unnecessary. The reality is that new homes can have problems too. Hire an inspector to make sure everything is safe and up to code. Ask your agent to explain your rights in the agreement to request repairs or terminate the agreement.

Look to the future.  The responsibility is on the buyer to be aware of community changes related to development in the area. Research the area, and the local government agencies responsible for planning.

Do your homework on lenders. Some builders require pre-approval with their preferred lender. You don’t have to use their lender. Shop around for the financing that is best for you, not them.

With a few easy steps, you can safeguard your investment.