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There’s a lot to love about brand new construction.
They’re pristine, boast updated floor plans, require less maintenance, and they’re energy-efficient.
You may also think that buying new construction is easier than purchasing an existing property. Everything is brand new, so what could go wrong? That’s not quite the case, however. There are still some things you should be aware of if you choose to buy a newly-built home.
Get to know these six important considerations to new construction before you sign on the dotted line.
1. You’ll need a qualified real estate agent.
Whether you are buying a new home or an existing one, real estate contracts are complex documents. That’s why it’s important to work with the right real estate professional. They can help negotiate your contract with the builder and answer questions you have about the process. The builder generally pays the real estate agent’s commission so you won’t have to worry about that expense.
2. Carefully consider the builder and the type of home.
There are many different types of new construction properties, so you’ll want to choose a quality builder with the right expertise. The type of home you plan to buy will affect the cost, financing, and timeline. New builds include tract, semi-custom, and custom homes:
- Tract homes are built within a new development or subdivision. The builder purchases a large tract of land and constructs houses on each lot.
- With semi-custom (or spec) homes, the builder selects the floor plan, builds the property, and then sells a move-in-ready home. Some spec homes are semi-custom, which allows you to choose some of the finishing’s.
- Custom homes are completely tailor-made. The builder constructs the house on your land and to your specifications.
3. Read the contract carefully to know what you’re getting.
When you tour an existing property, you can see just what you’re buying. But when it comes to new construction, what you see is not necessarily what you get and it requires some vision on your part. For example, when you tour the builder’s model home, everything looks stylish and luxurious. However, these residences are usually outfitted with every premium and custom option possible so they appeal to prospective buyers. These bells and whistles won’t necessarily be installed in your home unless you want to pay for lavish upgrades. Look over your contract carefully to understand exactly what you’re getting and how much it costs.
4. Brush up on your negotiation skills.
When you buy a new construction home, there’s not much room to negotiate on the price. The builder sets the amount and likely won’t budge, but you may be able to negotiate on some of the other items. Work with your agent and the on-site salesperson to include some concessions in the contract, such as discounted upgrades and builder assistance with closing costs.
5. Building takes time and delays are common.
The average home takes a year to build. The size of the residence will play a role in the construction timeline, as larger and more complex houses take longer to construct. It’s important to know that there will most likely be some delays in the process, such as unexpected rainy weather, freezing or soaring temperatures, and events like supply chain issues that can delay the arrival of building materials. If these delays are numerous or extensive and you have already set the closing date for your existing home, you could find yourself between houses for a period of time.
6. Get a home inspection.
Even with a brand-new home, mistakes can still be made and things can go wrong. A home inspection costs roughly $500 but will likely reveal items that the builder needs to address. Some common problems found during new-construction home inspections include defects like foundation cracks, poor framing, and electrical issues. Addressing these concerns early on prevents them from becoming serious problems down the road.
Follow these suggestions to ensure that you’ll enjoy your beautiful new home to its fullest. Do you have questions or need more information about new construction? The helpful professionals at Certified Title are here to make your real estate transaction smooth and hassle-free. Please contact our experienced team today.
About Certified Title Corporation: Since 1994, attorney-owned Certified Title Corporation has been furnishing residential and commercial real estate stakeholders across the nation with robust title insurance, settlement, and escrow services. Renowned for industry-leading reliability and an exemplary level of service and quality, the Maryland-based company helps clients from all walks of life achieve their asset goals. To learn more, call (888) 486-5511 or visit certifiedtitlecorp.com/.