A new construction home is a newly built or soon-to-be-built home that is often in a new subdivision or development with the builder typically being the seller & the on-site agent working for the builder/seller.

 

Buying a new construction home is a very different process from purchasing a resale (previously owned home). 

 

Here are some important things to keep in mind when purchasing a new construction home:

 

Steps For Purchasing A New Construction Home

1. Get Pre-Approved

2. Hire A Real Estate Professional

3. Know Your Timeline

4. Research Builders & Neighborhoods

5. Negotiate, Review Your Options & Sign The Contract

6. Make A Deposit

7. Schedule Inspection(s)

8. Close

9. Move-In

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Protecting Yourself

Whatever you do, please DO NOT sign a contract or any documentation at the sales center if you do not have your agent with you. 

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If you do, you are waiving the following:

1. Representation

2. Time to study the contract, understand all the provisions, and negotiate them

3. Due diligence

4. Time to research the price and negotiate from a position of knowledge

5. Time to research the developer

6. Time to look at other new developments

7. Time to shop for mortgages and read through the paperwork

8. Time to closely consider the lot, floorplan, and elevation to make sure you're picking the best possible options

 

Did you know the builder pays the real estate agent’s commission? There is no additional cost to you to use your own real estate agent to protect you during the biggest transaction of your life.

 

Pros Of Purchasing A New Construction Home

1. Customization: You may have the opportunity to choose finishes, appliances and other features to your liking.

2. Low Maintenance: New construction homes typically require less maintenance in the first few years of ownership.

3. Energy Efficiency: New construction homes are often built with the latest energy-efficient materials and appliances, which can save you money on utility bills.

4. Warranty: New construction homes usually come with a warranty from the builder, providing peace of mind.

5. Modern Amenities: New homes often come with the latest technology and amenities, such as smart home systems and high-end appliances.

6. No Repairs Or Renovations Needed: Since everything is new, you typically won't have to worry about any major repairs or renovations for quite some time.

 

Cons Of Purchasing A New Construction Home

1. Cost: New construction homes tend to be more expensive than older homes in the same area.

2. Delays: Construction delays can occur, which can postpone your move-in date.

3. Limited Negotiation: Unlike with an existing home, there may not be as much room for negotiation on price or other terms.

4. Neighborhood May Not Be Fully Developed: If you're one of the first buyers in a new development, you may have to deal with construction noise and a lack of amenities until the neighborhood is fully built out.

5. Unknown Neighborhood: If the community is new, you may not know what the area will be like in the future.

 

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