Whether you’re an existing home owner who needs to move, or a first-time buyer, buying a new construction house can be a great option. These homes come with a variety of advantages, including energy-efficient features and thoughtful layouts that suit modern lifestyles.
There are several important things to consider before you buy a new construction house, however. Taking these tips into consideration can help you avoid costly mistakes and ensure that your experience is as stress-free as possible.
Don’t Make These Mistakes When Buying a New Construction House
One of the most common errors that buyers make when purchasing a new construction house is not hiring a real estate agent. This mistake costs them thousands of dollars and can result in a delay in closing, says Kerron Stokes, an agent with RE/MAX Leaders in the Denver metro area.
If you don’t have a real estate agent when buying a new construction home, you could be missing out on some money-saving perks that builders offer, such as clubhouses or swimming pools. The cost of these amenities is usually built into a homeowners association fee, so it’s worth asking your builder about them, Stokes advises.
It’s also a good idea to work with a real estate agent who specializes in new construction, Stokes says. This can give you extra leverage when negotiating with the builder and can save you time in the long run.
You should also be aware that building a new home typically takes longer than buying an existing property. Depending on the development, it can take anywhere from 1.5 months to 2 years for your unit to be completed.
A lot of unforeseen issues can arise with new construction, which can make it difficult to get your home completed on time. This can be especially true if the builder has to wait for the supply chain to catch up or if a hurricane hits.
If you’re in a hurry to get your new home, you may want to consider buying a model unit instead of a finished unit. This can save you some money because it will be turnkey ready, and the model units tend to be priced less than other units in the development.
Another disadvantage to buying a model home is that the unit will likely be in rough condition, which can lead to unexpected surprises when you move in. Many developers include “touch up language” in the purchase contract that indicates they’ll do something like sand the floors and paint the walls, but that doesn’t always mean the sponsor will actually do it.
Lastly, it’s also a good idea to read your builder’s warranty carefully. If it doesn’t cover a specific issue that you’re having, it could be time to move on from the project and look for other options.
Despite the challenges, buying a new construction house can be an exciting and rewarding experience, as long as you’re prepared. Follow these tips to ensure that your home buying experience is as hassle-free as possible and you won’t be disappointed with the results.
