What to Know About Buying a New Construction Home
It's not easy to be a first-time homebuyer. There are so many things to think about: the down payment, the mortgage, the closing costs. But when you're buying a new construction home, there's even more to consider. Here are five strategies that will help make buying a new construction home easier and less stressful.
Get Pre-Approved for a Mortgage Before You Start Shopping
Mortgage pre-approval is a crucial first step in the homebuying process. It will give you a clear idea of how much you can afford to spend on a new construction home for sale. And, when you're pre-approved, builders will take you more seriously as a potential buyer.
Additionally, getting pre-approved will help you move more quickly when you find the perfect new construction home, since your lender will already have all of the financial records you submitted for the mortgage application on hand.
Work With the Right Real Estate Agent
If you're not working with a real estate agent, you should be. A good agent will help you navigate the often-complex world of real estate buying, selling, legalese, and lingo. They can also advise you on things like negotiation strategies and contracts.
But not all real estate agents are created equal. You'll want to find an agent who is familiar with the ins and outs of new construction homes specifically. They should also be familiar with the builders in your area.
Do Your Homework on the Builder
When you're buying a new construction home, you're not just buying a house - you're buying into a community. And that community is created by the builder, so it's important to do your homework on the builder before you sign on the dotted line.
There are a few things you'll want to look into: the builder's reputation, their past projects, the quality of their homes, and the eventual plans for the community, such as amenities. A good way to narrow down builders is to find those who specialize in your priorities, such as a specific home style or their approach to sustainability. You can also ask for referrals from friends or family who have purchased new construction homes.
Be Prepared to Negotiate
New construction homes are often priced higher than resale homes. That's because builders need to cover their costs, and they also want to make a profit. They also have all the benefits that most sellers get through high-ROI home upgrades, such as a new roof, a new HVAC system, new up-to-date appliances, and more.
But that doesn't mean you can't negotiate. In fact, it's important to be prepared to negotiate when you're buying a new construction home.
Your real estate agent will be a valuable resource when it comes to negotiating with the builder. Usually, builders don't negotiate on the base price tag because they don't want to set a precedent that could devalue other homes in the community. But there are other things you can negotiate, like upgrades or closing costs.
Expect Delays in the Timeline
For those not familiar with the process, it can come as a surprise that new builds can experience multiple delays in the closing date. It's important to be prepared for changing timelines if you're buying a new construction home.
The most common cause of delays is inclement weather impeding construction. But there are other things that can cause lost time, like material shortages or problems with the city approval process.
If you're prepared for delays, they won't be as stressful. So it's important to be prepared for possible setbacks.
The best way to do this is to talk to the builder about their timeline and ask about any potential problems that could occur.
Your Dream Home is Just Within Reach
Buying a new construction home can be a daunting task. But if you keep these five tips in mind, you'll be well on your way to finding the perfect home.