Purchasing a home is an exciting concept, and purchasing a new construction home amplifies the thrill. This is a house that will be built precisely to your specifications and that no one will have ever lived in it before you. You’ll be the first to hang a shirt in the walk-in closet and put a carton of milk in the refrigerator. Everything from the tile flooring to the elaborate kitchen backsplash is up to you to choose. However, there are a few considerations you need to make when buying new construction homes.
Here are some considerations to make:
1. Know your customization costs and options
Most new houses provide the following customizing options:
The home was built on the speculative market and is available for buy as-I Semi-custom: The structure is completed, but there are some options for customization.
Full custom: You have complete control over everything.
If the granite countertops and hardwoods you adored in the model come with a big price tag, you’ll be disappointed. Once you’ve decided the level you’re comfortable with, be sure you understand what’s included and what’s not. Then get it down on paper.
2. Consider the timing
Because of weather, vendor delays, and waiting for procedures such as to permit clearances, the timing for building a home can be unpredictable. The faster the procedure should run, the further the home is in the construction process when you buy it (whether it’s semi-custom or on-spec, for example). Building a house takes between 3 to 7 months on average, depending on size. But it might take over a year if there are any delays. If you’re thinking about building a new home, pick a design that complements your present living environment. Building from the ground up can be right for you if you’re willing to be flexible enough to allow for a long—and perhaps unpredictable—lead time.
3. Ensure you have an agent or realtor
Purchasing new construction is similar to purchasing a home: you’ll need a team that has your best interests at heart. Follow the same steps that you would when purchasing an existing home. These include conducting research, hiring a realtor, conducting interviews, and also ensuring that you apply to various mortgage lenders that will offer you the best deal. Builders frequently have an on-site agent and preferred lenders, and it’s not uncommon for them to advise customers to work with them exclusively. However, it’s a good idea to conduct your research. While a builder’s lender may provide you with incentive money, an outside lender may charge you less in points, resulting in greater savings over the life of your loan.
In most cases, newly built house warranties cover only the labor and materials. Some policies are only good for a year (for example, siding, doors, and trim), some are good for two years (typically for HVAC, plumbing, and electrical), and some are good for 10 years (for significant structural flaws).
Understand precisely what is and is not included, and don’t hesitate to ask for adjustments or concessions if the language does not suit you.
In conclusion, buying new construction homes have their thrill; however, the above considerations are crucial to making.