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Buying a newly constructed home gives you the opportunity to pick options not necessarily available to you if were to purchase an existing home. Wouldn’t it be nice to plan your kitchen cabinet space and build in task lighting specifically for your needs? When you build a home, you get to select flooring, appliances, and even customize your floor plan.
However, buying a newly constructed home also presents some challenges and there are things you need to do in order to make sure the process runs smoothly.
Here are 10 Things You Should Do Before Buying a Newly Constructed Home:
A real estate agent will be familiar with area builders and know which ones are reputable. They will also have a good idea of which homes are good investments and the most desirable areas to build. In addition to all that, they can help you during closing.
If you choose not to go through a real estate agent, make sure you thoroughly research both the builder and the community where the house is being built. Look up reviews and if possible, tour other homes that the builder has constructed.
Everyone has a budget. You are better served using yours to get the right-sized house for your need and in a good location. It is much more expensive, and sometimes not possible, to build onto a home than it is to upgrade appliances down the road. A custom floor plan allows you to plan all the rooms your family will need.
If the home is still under construction, then ask if there is a model home or one you can tour so you can actually walk through and understand how the home is laid out. Many new home builders now offer 3D modeling so prospective buyers can get an idea of what their home will look like after it’s finished.
A custom floor plan allows you to design and tailor your home, but some of those changes could come at a cost. Make sure you fully understand what your quoted price covers and how any changes or upgrades affect the final buying price.
It’s always a good idea to have a professional review of a contract before you sign. Most issues arise from misunderstandings as opposed to fraud. If something in your contract is not clear, ask for clarification and make modifications if needed.
Most custom home builders offer some type of home warranty. Be sure to ask how long it’s in effect and what items it covers.
You should get a home inspection on a newly constructed home just as you would if you were purchasing an existing home. A home inspector will look at the wiring and plumbing, among other items, and make sure everything meets local building codes.
Even though most real estate agents will recommend their favorite lender and closing company, you should do your own legwork and get several bids. Not all lenders offer the same perks and you also want to weigh their reputations.
After you’ve looked at all your options and decided that buying a newly constructed house is what you want to do, then you should begin the process of closing the deal. Speak with your real estate agent or your custom home builder. You will need to meet with a designer first to finalize your customizations so you can secure financing and then sign the contract.