Buying a new construction home isn’t for everyone. The buying process itself is unique in that you actually purchase the property from the person who built it rather than the person who called it home for years before. The buying process can be a little more complicated than normal, so here are a few things that can make it a little easier.
1. Get An Agent
It’s in your best interest to get an agent who is well-versed in new construction homes. Your agent should not be affiliated with the builder in any way to ensure she has your best interest at heart. Your agent will help you deliver an offer the builder finds appealing as well as help you make decisions that may impact the resale value of your home. Some developments have strict policies that require an agent to be with you on your first visit.
2. Be Creative When Negotiating With a Builder
Builders don’t usually like to lower their asking prices since future buyers may expect the same deal. However, a builder may be willing to negotiate on the “backend” because these incentives are less obvious to other buyers. Don’t be afraid to ask the builder to pay closing costs or to make upgrades to the home to sweeten the deal for you.
3. Get Everything in Writing
Verbal agreements are never binding, so it’s important you get everything you discuss and agree upon with the builder in writing. If the home isn’t complete, be sure your written agreement includes how the home will be finished, the deadlines for any decisions that need to be made, and what happens if the builder fails to finish the home on time.
Many builders have their own purchase agreements that may differ from the forms used in your area. Be sure to get a copy of your builder’s documents ahead of time so you can go over them closely.
4. Ask For A Guarantee
You’re often purchasing a home that isn’t completed yet. As such, it’s important you get some sort of guarantee that states when the home will be finished. While the guarantee will have a set completion date, builders often enter stipulations for things like delays in obtaining permits and building material availability. Should the home fail to close on time, there may also be additional charges.
Should there be a delay on either side, the agreement should state what happens.
The thought of being the first person to live in a new construction home is exciting, but at the same time, the buying process can be somewhat of a headache. If you’re interested in purchasing a new construction home, the tips above should help make the whole process a little easier for you.