Selecting brand-new home construction
Whether to buy an existing home or have one built is yet another choice to make during the home-buying process. If you decide to choose new construction, a Realtor® can be a powerful advocate in your corner as you work out upgrades, a move-in date and other terms with the home contractor.
Below are some standard pointers to prepare you for the journey ahead:
Selecting a builder.
Searching for a big production or custom-made house contractor can be a challenging task. Start by defining exactly what architectural styles appeal to you then look for the builders in your target area who provide those styles. Due diligence is important. Ask friends/family/neighbors for referrals to get firsthand accounts; verify the contractor’s state license status, if appropriate; and check whether they’re certified by the National Association of House Builders.
The builder agent and your property agent
A home builder agent’s ultimate objective is to sell you a home. His/her role is to provide a large range of info to help you in your decision-making, from developing restrictions, roadways and easements to inspections, guarantees, refunds and upgrades. A real estate agent well-informed in new-home building will be able to provide guidance as you wade through all the data and explain the downsides and upsides of each line item. Your representative also can keep an eye out for your interests in reviewing the home builder’s contract, which frequently consists of more legal jargon than consumer-friendly language.
It’s all about timing
Market conditions significantly dictate a builder’s incentive to make a deal you can’t turn down. When a home builder has inventory on his hands, his costs begin adding up. When this takes place, a builder might be more amenable to strike a favorable offer, whether it’s including upgrades or taking a bit off the asking price. An experienced agent can help you understand when market conditions are right for these advantages. Also, be on the lookout for builder close-out sales. Home builders promote these unique events when a new neighborhood is near completion and still have empty houses to fill.
A word about paying up.
While there are always exceptions, a lot of contractors require a deposit when a purchase agreement is signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to closing, unless the contract specifies otherwise, you will lose that money. Make certain you understand every detail in the home builder’s contract before signing it.