There is a difference in buying an existing home and a new construction. First and foremost, you are buying a new construction home from the builder rather than a person who lived in it. Here are some tips to protect your best interest as a buyer when considering buying new construction:
- Your Agent. Be sure your agent is someone who has experience in new construction and isn’t affiliated with the builder. Model homes are typically staffed by a real estate agent who has a relationship with the builder. It’s important for you to have an agent to represent your best interests.
- Negotiations. Builders typically don’t negotiate the selling price much. They do however consider upgrades and concessions such as fencing, land scaping, etc. and closing costs.
- Research the Builder. Visit other developments and talk to homeowners. Search online for reviews, testimonials and news. Keep in mind that many builders will have both happy and unhappy customers in their past. Look for trends in reviews and make sure any concerns are covered in the purchase agreement documents.
- Get the Home Inspected. Just because you are buying a new home, doesn’t mean it shouldn’t be inspected. Make sure you use a home inspector that is qualified to conduct new home inspections.
- Home Warranty. Many new homes come with a warranty from the builder, but not all warranties are created equal. Know what is and isn’t covered and for how long. Many builders use a third-party warranty company. In some cases, the manufacturer of certain products, like windows, may have a separate warranty or guarantee and the builder might refer all issues with those components to the manufacturer instead of handling any issues directly.
- Home Owner Associations (HOAs). Many developments have HOAs designed to protect the integrity of the subdivision. Your agent can research current and future HOA regulations and plans.
- Lenders. Don’t automatically use the builder’s lender. Shop around for the loan that is best for you, not them. It’s reassuring for the builder to hear about your qualifications from a lender, but you may not have to lock into the builder’s preferred lender.
If you are considering purchasing a new construction home, feel free to contact me at (601) 421-7094 or dnelson@rightsizerealty.com
Redfin. How to Buy a New Construction Home. Retrieved from: https://www.redfin.com/resources/how-to-buy-a-new-construction-home