If you are looking to buy a new home, you undoubtedly know that there are multiple options out there.
Some people want a fixer-upper, others want a move-in ready home. If you’re looking to move into a brand-new home, you’ll find that new construction will carry a higher cost than most of your other options. But if you arm yourself with the right questions to ask and know what to look for, you just might find the right new construction home for the right price.
Below we touch on topics to discuss with builders when looking for your dream home.
- When looking at the price of the “home”, determine if it includes the lot. Often times, a prospective buyer will find a home of interest, only to find out the price listed includes ONLY the house, not the land.
- Ask the builder if they offer incentives for using a preferred lender and title company. While many builders won’t negotiate the price of the home, you might find they offer various incentives. Incentives might include a discounted rate on closing costs or upgrades to the finishing touches of the home.
- Determine the features included in the advertised price of the home and how much more you’d pay for upgrades. Model homes generally have upgrades, but at a higher cost. Examples of these upgrades are hard wood flooring and granite countertops. Find out before you move forward if the cost still fits in your budget with the updated features. On top of the features that are included, determine if you are responsible for bringing in your own appliances or if you are given an allowance when choosing appliances.
- Be sure to find out details on the home warranty. Make sure the warranty specifies exactly what is covered and for how long.
- Depending on the type of development, you might be responsible for paying Home Owner’s Association (HOA) fees. Find out if this is the case when speaking to the developer so you can accurately budget your expenses.
- When buying a home run by an HOA, research the HOA rules and regulations. Restrictions on paint colors, lawn decor and whether or not you can have a shed are often found.
- Find out how long you need to expect the building process to take. This is especially important if you’re selling your existing home first and need to rent while building.
Buying any type of new home under any circumstances can be a confusing and overwhelming process.
If you have your heart set on building your home, you need to know what to expect from the start. Your best option is to have an attorney go through the contract before moving forward with a builder. Arming yourself with knowledge and having clear expectations will help to ensure you end up with your dream home.