6 tips to consider when buying new construction

Are you looking at buying a new home from a builder? Picking out the paint color, flooring, and kitchen countertops can ensure the home is just the way you like it and save you from buying an existing home and then doing renovations. Here are 7 tips to consider before you buy, to help you navigate the new construction process.

List price and sales price may not be the same

When buying from a builder, they may lure you in with a low base price, but then the price you pay with all the add-ons and upgrades costs thousands more. It’s important to note what’s included, what are “upgrades” and what those upgrades cost.

The builder’s “Design Center” = profit center

After you sign the contract, many builders invite you into their “design center” to “pick out your finishes”. That’s when you find out that the upgrade you wanted will cost more than the house price. Or that the upgrades aren’t done. Having a real estate agent can help you navigate this process and help you negotiate credit towards upgrades and options. Before you sign the contract, ask the builder to share their spec sheet and design costs so you can get a better idea of what the home actually costs.

Negotiate the sales price

Since builders typically build many of the same or similar homes in a community, they don’t want to discount the price as that can impact the price of other homes they’re selling. That said, once the home is completed, every day it sits vacant is a day the builder loses money in interest and carrying costs and can’t use the financial resources tied up in that home to start building another one.

Walkthrough and builder warranty

Before closing, you’ll want to schedule a walkthrough to ensure all the work is done and satisfactory. This is when you will want to submit a list of items that need to be fixed or touched up. Even though your new home should come with a warranty from the builder, you may still want to pay for a 3rd party inspection. The inspector is likely to see things that you’d miss and can help add to your list.

Why you should use a buyer's agent

It’s important to know that the friendly sales associate in the model home works for the builder, not for you. They are paid by the builder to sell houses and upgrades and not to help you negotiate the best deal. That’s why it's best to bring in your real estate agent. Someone who represents you and your interests.

Sourced by: Simpleshowing