Buying a new construction home can seem both exciting and daunting. Browsing locations, assessing your finances, and deciding on personalized finishes are all aspects you need to consider, which can be intimidating. Fortunately, it doesn’t have to be! We simplify the steps to purchasing a new construction home, so read on to help make the process as smooth as possible.
Research Builders and Locations
Realtors aren’t necessary when buying a new construction home, but they almost always help make the process smoother. Real estate agents can advocate for your interests during the purchasing stage and guide you toward builders and locations that work for you. If you want to be happy in your new home, don’t settle for an area you don’t want to live in just because that’s where a particular builder is developing. Likewise, don’t work with a builder who doesn’t have a proven reputation, even if it’s in your desired location.
Get Your Financing In Order
Buying any home requires you to understand your finances and set a realistic budget. For instance, a lender may require you to sell your current property before they’ll pre-approve your new construction home. What’s more, buying a new construction home means you will have to put down a deposit and make payments pre-move. It’s always a good idea to speak with a mortgage broker to figure out precisely what you can afford.
Figure Out Your In-Between Living Situation
Building a house tends to come with some delays. If you’ve already sold your home, delays can cause significant issues. That’s why you should always plan to have an in-between living situation like a short-term rental agreement or staying with family and renting a storage locker for your belongings.
Find out What’s Included
Asking many questions during the pre-construction process is crucial to understanding what’s included in your new home. For example, all new construction homes come with standard features but many of the model homes show the upgraded features that cost extra. So, it’s always important to find out which features are included and which features you need to pay for. You should also find out the estimated closing costs, the expected timeline, and if things like landscaping are extra. Getting your questions answered will provide a sense of clarity and help you stick to your budget.
Decide on your Finishes and Features
It’s time to make many exciting decisions such as aesthetic finishes, kitchen design, and smart home features. Remember, the decisions you make will have a significant impact on the look and utility of your new house and its final purchase price and future sale price. Don’t be afraid to work closely with your builder’s design expert or team – ask questions and be open to their advice.
Inspect Your New Home
A pre-delivery inspection (PDI) is one of your first opportunities to tour your new, completed home. Your builder will guide you through the inspection and may demonstrate how to use your new home’s systems including the ventilation, plumbing, and heating.
If there are damages or something is missing or incomplete, it should be noted on the builder’s PDI form to confirm that these conditions existed before you moved in. It will also give the builder a chance to resolve any issues before your move-in date. Once the inspection is finished, you will be asked to sign the PDI Form.
Sign and Review the Warranty Documents
Warranties play a significant role in the new construction home process. As a buyer, you should know which warranty your builder provides you – implied warranty or express warranty. Implied warranties use vague language and can cover workmanship defects that can impact the safety and livability of your home. An express warranty has clear guidelines and defines the builder’s responsibilities and the length of the warranty. It’s always a good idea to ask as many questions as needed from the builder sales agents.
Buying a new construction home has so many perks! Houses are built to code, they won’t need significant repairs for years to come, and you get to customize them to your liking. Although the process can be stressful, we hope following the above tips help you move into your beautiful, new construction home without issue. For more great real estate tips, visit our blog.Tags: Buying A New Construction Home, Home Buying Checklist, Home Buying Guide, Home buying process