Finding a home that works for you and your family in the resale real estate market can be quite the challenge. Inventory is ridiculously low and competition is high. If you aren’t willing to battle it out with other buyers, a new construction home may be something to consider.
The process of building a home is not as daunting as it sounds. In fact, it gives you the opportunity to customize the home to your liking so that you won’t have to do any projects once you move in. Of course, there are some things to look out for – let’s go over what you should know about new construction homes.
Your House Won’t Look Like the Model Homes
Those model homes are stunning, aren’t they? The builder will spare no expense to make sure the model home entices buyers into buying a home of their own. Here’s the thing – if you want your home to look like the model, it will cost you.
When you’re looking at model homes, always ask what is included in the base price. The model home is full of upgrades – things like the marble countertops, tiled shower, and even some of the paint does not come standard in the home you will buy.
Once you decide on the home’s floorplan and lot location, and the home’s construction gets started, you will go to the design center. The design center is the most fun part of buying a new construction home. You’ll get to pick everything – light fixtures, cabinets, baseboards, paint colors, flooring – I could go on, but you get the idea. There will be standard items that are included in the price you agreed to pay for the home, but if you want to upgrade any of the items, the extra cost will be added on to your purchase price. The extras can easily add 5-10% onto the price of the home.
Not All Builders Are the Same
There are a lot of home builders out there, some are great – others, not so much. Before entering into an agreement and putting any sort of deposit down, you should research the builder and previous projects they’ve worked on. Here are some things to look out for:
- Complaints about quality of work
- Check their credentials
- Do they stick to their schedule?
Knowing what you’re getting into will help ensure the build process goes smoothly and won’t leave you out in the cold while you’re waiting on your new home to be built.
Get A Realtor
It is so important to bring your agent with you when you start your new construction home search. It is also important that you understand that the agent you see in the sales office represents the builder. It is true that they will help you with the paperwork, but at the end of the day, they are working with the builder’s best interests in mind, not yours.
Many people think that by buying the home with only the help of the builder’s sales agent and not hiring agent representation of their own that they will save money. However, that is simply not the case. As a buyer, not hiring agent representation won’t save you money on the purchase because hiring an agent won’t cost you any money. This is because the buyer agent’s fees are paid by the seller, or in this case, the builder. If you do not have an agent, then the builder keeps that money in the absence of the expense.
By having your own representation, the agent will be there to review contracts and all other paperwork with you and ensure that you understand every detail and that you aren’t being led astray.