5 Tips for Buying a New Construction Home
More and more home buyers are opting for new constructions homes over an existing home, and rightfully so. Between shiny new appliances, beautiful flooring, updated finishes, and everything else a new construction home has to offer, there’s no more worrying about what’s going to break next or planning out renovations to make your home to feel more like “you.”
While buying a new construction home does require many of the same steps as buying an existing home, there are a few additional steps that need to be considered when it comes to buying.
New Construction Home Options
When you decide to go with a new construction home, there are typically three options to choose from.
Built On Spec - A new construction home that has been completed and you purchase it as is.
Semi-Custom - A majority of the house has been built but you are able to customize finishes and details.
Full Custom - You purchase the land and build the home from scratch.
Once you decide what type of new construction home you are interested in, you’ll be able to start the home buying process.
Tips for Buying a New Construction Home
No matter what type of new construction home you decide to go with, having an agent to help you through the purchasing process is not necessary but will help make the process much easier. From putting in an offer and helping with contingencies associated with your current home to dealing with builders and purchasing land, you’ll be happy to have the extra support.
Speak with a Lender About New Construction Loans
Financing for a new construction home is much different than financing for an existing home. By speaking with a lender that is not only familiar with new construction loans but is also local, you’ll be able to get a full understanding about your financing options, make sure you have all the proper paperwork, and will help familiarize you with future options.
In addition to speaking with a local lender, keep in mind:
New construction loans typically have shorter terms.
New construction loan rates are usually higher.
The paperwork for a new construction loan will need information on construction timelines, building plans, purchase offers, and budgets.
Get Everything in Writing
When working with a builder, it’s crucial to get EVERYTHING you have discussed in writing. This includes pricing, upgrades, features, and timelines.
Always Hire a Home Inspector
When most people think of an inspector, they think of existing homes but having an inspection of your new construction home is important. There can still be defects and issues that arise and by having your home inspected before the walls are closed and then again before you move in, you’ll ensure that everything is being built properly and avoid issues in the future.
Are you ready to start your search for a new construction home or land for your future home? Contact our team at RESOURCE360 today at 203.594.0360.