4 Tips for New Construction Homebuyers
Here’s what you should be doing if you decide to build a new home.
Given the lack of inventory in the resale market, homebuyers are having to look at alternative options. One of these is new construction. Here are four tips to consider if you’re thinking of building a new home yourself:
1. Check the builder’s reputation and warranty. Double check online reviews and public records to find out if there are any previous or pending lawsuits against the builder. You should also research the construction quality of the surrounding homes and the builder’s warranty policy. Not all builders are the same.
2. Use the right lender. Builders often recommend their own preferred lender for a variety of reasons. It can make it easier to keep both parties informed of the transaction and facilitate a smoother closing. Builders often offer special deals and discounts if you use their preferred lender. Make sure to research the lender’s reputation, ratings, and customer service record before you lock in an agreement.
“Make sure to research your builder’s reputation beforehand.”
3. Negotiate incentives and research inclusions. Buyers will assume the best way to negotiate with a builder is to have them drop the price. This isn’t the case. Instead, ask the builder about incentives and negotiate upgrades. For example, most builders don’t include appliances in their agreements. If their sales are strong, they’re less likely to give these incentives. Find out what comes standard in a home and use that to negotiate.
4. Be flexible and set realistic expectations. Buying new construction can have its benefits. Oftentimes, you have the luxury to personalize the home prior to moving in. Understanding your timeline is important as well, and you should account for additional time with the build process. Be flexible, because there are occasional delays in the process. Consult the builder to better understand the timeline. Closing dates are typically issued at the drywall stage, which still gives you plenty of time to plan your move.
If you have any questions about buying a new construction home or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.