Tips for Buying New Construction

The most useful tips for buying new construction are real game changers. When you’re armed with the right information, you make better decisions and this is very important when it comes to purchasing a new construction house. After all, you want all of the biggest benefits of buying a newly built home, such as the latest in building codes, customization, energy efficiency, less maintenance, and taking advantage of builder incentives. But to enjoy these to their fullest, you need to know a few things about new construction homes.

Tips for Buying New Construction

Buying new construction differs from purchasing a resale because you won’t have to deal with the seller’s emotional ties to the property. This often influences the negotiation process and causes unnecessary delays. With such a new purchase, you’ll be dealing with the home builder, which includes its own set of dynamics. However, there are a number of similarities between purchasing a resale and buying new construction. First and foremost are all the costs: inspections, moving, closing costs, and more.

There’s something inherently appealing about a brand new house — you get to pick out the countertops, drapes, and appliances, and have everything designed just the way you want it. New houses often come with more space and better appliances, require less immediate fix-up work, and are more energy-efficient than older ones — and all at a competitive price. But there’s a downside, too. Often, the advantages of new houses are overshadowed by problems such as shoddy construction and lengthy construction delays — or worse, construction stoppages if the developer runs out of money. —Nolo.com

What’s more, there are all those little extras which add up quickly. These expenses are things such as landscaping, window treatments, property taxes, insurance, and furniture. And, you’ll still have to shop mortgage products and rates, as well as go through each of your three credit reports. It’s also a good idea to set some money aside for miscellaneous expenses like housewares and more. Before you jump into the process, here are the most useful tips for buying new construction to help you out:

  • Have your own buyer’s agent. The builder will have real estate agents on-site who will show models and completed homes for sale. But their loyalty is to the builder, not to buyers and it’s critical you have your own buyer’s agent. Someone who knows the area intimately and is experienced in navigating buying new construction through the entire process.
  • Get a home inspection. Even though a new construction home must meet the latest building codes, understand a home inspection is still necessary. This is because the builder isn’t on-site 24/7 and misses various parts of construction. Plus, you’ll be alerted to any material defects or problems before you move into the property. This gives you time to resolve the situation and not have your day-to-day life interrupted.
  • Learn what is and isn’t included. When you tour model homes, you’ll see the crème de la crème of what the builder has to offer. But those out-of-this-world high-end finishes and super cool amenities all come at a cost. You’ll have to learn what is and isn’t included with the standard new construction home and which upgrades are within your budget.
  • Understand what the warranty covers. One of the best aspects of buying new construction is getting a warranty. These range in timeline and scope but in general, cover some of the biggest possible expenses. However, the home warranty will not cover everything and you need to gain a solid understanding of what it does and does not cover.
  • Look into the future. Because Orlando is haven for new construction and growth, you should know what’s in-store in the future. While there might be a great view of green space now, don’t count on it being there in five years. Learn what’s slated to happen in the next several years.

In addition to these suggestions, you should also get everything in writing and document the process as you go along (particularly if the home isn’t yet built). This documentation is a wonderful thing to have for peace-of-mind.