Tips for Buying New Construction Real Estate
If you are in the market for a new home, perhaps you are considering buying a newly-constructed home. When buying a home that was just built, there are a lot of things to consider. In this week's blog entry, we have included information about this to help guide you in making the decisions that are best for you and your home buying goals.
Pro & Cons of Newly Built Homes
There are both positives and negatives when it comes to buying a newly-built home. One of the good things about going this route is that you get full customization. However, since it will be fully customized from the beginning, there will be no more updating to do. Therefore, the resale value will decrease and you will not earn any equity if you ever sell your home. Aside from this, a couple more benefits that come with going this route are that you will be getting a home that is more energy efficient as well as has fewer health hazards. The other cons to building a newly-constructed property are having higher upfront costs and having to deal with the time it takes to get the property built.
Shop Around for Lenders
As with buying any home, you will most likely have to seek a mortgage lender. There are a few different ways you can go about this when getting ready to purchase your newly-built home. If you're anything like me, you will use the internet before you do anything else. You can search lenders online and receive detailed real-time quotes as well as reviews, and this way, you won't have to go through a lot of in-person interviews to choose your lender. Aside from this method, you can also go with a referral from a realtor or from a friend or family member. Most realtors have a mortgage lender that they work very closely with for the majority of their clients. Not only are you using a credible source this way, but you will also receive helpful feedback from the realtor you ask, such as how easy the lender is to work with and how much experience they have in the business. On the other hand, discussing mortgage lenders with family and friends will most likely give you a broader spectrum on who's out there and who may have the best pricing or customer service. Of course, you will get both positive and negative feedback about different lenders, but it will be honest and specific so this way you can choose the best lender based on your personal preferences.
Pick the Right Builder
After you decide to buy a newly-built home and find your mortgage lender, you will need to choose a builder. There are several things that a good, reputable home builder will do for their clients. Once you contact them and show interest in wanting to hire them, they will have interview you regarding what you want your home to look like and feature. Once the builder has a good idea of the kind of home you want, they will develop floor plans to show you and your architect, if you have one, different options that take your budget into consideration. The builder will also work with your realtor to find an appropriate lot for your home and figure out any development costs that might be associated to make sure you are staying at your budgeted cost. When it comes to finalizing the sale, a good quality home builder will be in charge of all inspections that need to be done, approvals, and the certificate of occupancy. Finally, when it's time to take occupancy of your new custom home, your home builder will walk you through the home and teach you what there is to know about operation and maintenance. Local jurisdiction will require a service warranty, and your home builder will provide this for you as well. When looking for a home builder to hire, it is very important to make sure that they will do all of these things for you. You will want to be sure to put the project of building your home in the most responsible and professional hands as possible.
Get Help From a Real Estate Agent
There are a few more things you will want to think about when going through the home-building and buying process. When you choose to buy a home that will be newly-constructed, it is important to consider choosing a realtor that has experience discussing and negotiating with builders. The less you have to do as a buyer in this respect, the better. Another thing to consider is that builders will offer free upgrades as negotiations to keep the value up of the home up. They will offer these upgrades rather than dropping their prices, and this is something that all buyers should be aware of.
Find the Best Neighborhood
Finally, consider the neighborhood in which you choose to build your home. What does its future hold? If things such as taxes and insurance, homeowner's associations, amenities, gardening, walkability, and noise levels are important factors to you, make sure you do your research. These things in the area you choose to live in might not be the same ten years in the future.
Many people have an idea of their dream home and consider buying a property that is custom-built, but the thought of going through this process can be very intimidating. Rather than letting go of that dream, just make sure that you are informed as you can possibly be and consider all of the above things before making your decision.