If you have your eye on a brand new home and want to be the first person to ever cross that threshold, we have some tips for you. Learn what to look for when buying a newly constructed home.
Get a Buyer’s Agent
Your Builder’s team will be more than happy to help you buy your home, but you want to make sure you have someone looking out for you and only you. Your Agent will represent you and your interests, help you ask the right questions and help make the best possible deal. The builder pays the Agent’s commission typically, but there’s one loophole—many builders want that Agent there from step one so play it safe and bring them in right at the beginning of the process.
Shop for the Best Mortgage
You’ll probably get a list of preferred lenders from your Builder. You are not obligated to work with them, but there may be some benefits to working with them. Ultimately, you need to feel comfortable and choose the lender that’s best for you and your situation. It’s always best to shop around.
This is critical. Call your Loan Officer as soon as you start the process. This will help you determine exactly what you can afford to spend on this new dream home.
Research the Location
Take a ride around the development. Look at the surrounding community. Watch traffic at different times of day. Do this before you fall in love with the floor plan and site plan.
Research the Builder
This is key. Check them out on the Better Business Bureau website, talk with local real estate agents, and check for customer complaints online. It’s important to understand the Builder’s reputation and work ethic.
Consider the Total Cost
Certain items come standard in the base price of a new construction home. That price is typically lower than what you’ll end up paying. Before moving forward, make sure you know exactly what features you’re getting and what you’ll pay for them so you have time to look at other options if needed.
Investigate Property Taxes
Your Builder will give you an estimate of course, but it’s always best to contact your local tax authority directly. As your home is built and changes are made, the Builder’s estimate may not be as accurate as you’d like. Only when the home is complete, will you know the exact cost. Your tax authority has the experience to estimate these costs more accurately.
Arrange for at Least One Inspection
During the build, you’ll be able to bring in a home inspector. Protect your important investment. The inspector can find any mistakes or problems. Builders will usually allow for two inspections—one pre-drywall inspection and one when the home is complete. You pay for these inspections, but it’s money well-spent!
What is in the Warranty?
Your new home will come with a warranty from your Builder. Review this in its entirety and don’t make assumptions about what’s included. Know what’s covered and for how long.
Any home purchase is a big decision, but building a home comes with additional steps. Work closely with your team —your Buyer’s Agent, Embrace Loan Officer, and Builder—and let them guide you through the process with ease.