Newly built homes hold a lot of appeal for home buyers. The idea of having something that is brand new and all yours is probably one of the biggest draws to purchasing a new home construction. In times of limited inventory for sale a new build may also be a great option for a buyer. But with all home purchases, new or used, there are some important considerations that need to be made. In this article, we will briefly discuss 8 Important Questions To Ask When Buying A New Build Construction Home.
1. Who is the builder?
Who is the builder, what is their reputation, what types of homes do they normally build, how long have they been building in your state and how long have they been in business are all questions that need to be asked. A quick Google search and a search of the ROC (Registrar of Contractors) are great places to start. You want to make sure that you are getting a good builder with a good product. That home is going to be yours, good or bad, for many years.
2. What is the build out time?
Depending on demand, how many houses they have started, if they do Spec homes, availability of construction products and labor force, there are several variables that affect your build out time and if you have a time frame that you are trying to keep to, this will be a very important question to make sure is asked.
3. What incentives are being offered?
Several builders partner with a preferred lender and will offer incentives based on if you use their lender or not. This could range from an upgrade allowance to buying down points on your loan etc. Many buyers agree to these terms and don't compare the actual big picture costs or savings that they are really getting. Be sure to do some homework in this area.
4. What are the standard features and what are upgrades?
Model homes are the BEST! Literally, they are the best. Most builders make sure that they deck out their models with all the upgrades and so that beautiful model home that you walk into and fall in love with, may not be the home that you will be purchasing within your price range. Be sure that you know what is standard and what is going to cost you more at the design center. Managing your expectations here is a MUST! (We have some great tips on how to manage all the upgrades and your level of sticker shock!)
Depending on the builder, you may have the opportunity to adjust your upgrades as you go along (mostly add more), but many builders order their supplies at the time of agreements being made and will not allow you to make an changes, so consider carefully and choose wisely. Take someone with you who has done this before. They will have good ideas of what is great to have and what really doesn't make a difference. A realtor will have even better ideas on what will be important for resale in the future.
5. What are lot premiums and does your future home have one?
Lot premiums are an additional charge that you get for having a "premium" lot. For some builders these are a bit arbitrary, and for others you will be paying for a better location within a subdivision, a larger lot when compared with others, or even better views. Be sure to be aware of what this means to you both financially now and for resale values as well.
6. Does my new home come with a warranty or do I need to purchase a home warranty?
Most builders will offer you a warranty with the completion of your new home, but those warranties can vary wildly, so you want to make sure you know what is covered and for how long. A warranty on your home and all of the new appliances brings a great deal of peace of mind since you have just spent a great deal of money on acquiring the home. In regards to purchasing a separate home warranty in addition to the builder's warranty, be sure to know what the builders covers and determine if you need additional coverage. You don't really want to be paying for double coverage after having just purchased the home.
7. Should I have an inspection done on my new build home?
Most builders will do a closing walk through with you to explain the features of your new home. They may even do a couple of final inspections with you to allow you to find any final touch ups that need to be done before the official closing. This is not a home inspection as it would be done by a certified home inspector. If you choose to have an inspection done on your new home, you will be responsible for paying for that outside of your agreement with the builder. Also, builders will not typically allow you to make your purchase of the home contingent on a home inspection, so if you choose to have one done it will be for informational purposes only. Remember, your new house will have been reviewed and certified as it was being built by the different city inspectors.
A qualified home inspector will find imperfections in even the most perfect of homes, so don't be surprised when your inspector still finds a list of things are aren't exactly right. There is no such thing as a perfect house, just the perfect house for you.
8. Will there be an HOA and what are the CC & R's for this development?
This is a SUPER important question to ask when buying a new construction home. Another accompanying question will be, when will the HOA transfer from the builder to the residents? Many of the new developments now a days have a HOA for the protection of the community as a whole and to help maintain the home values for the development. You will be given a copy of the Covenants, Conditions, & Restrictions (CC & Rs) as a part of your purchase of your new home. You will want to make sure that you take the time to know what is in them. Remember, there is a very big difference between CC & Rs that protect the community as a whole and your property values and those that restrict you from being able to do what you want to at and with your new home. Be sure you are informed so you are making the choice that is best for you and your lifestyle.
We are excited for you and your journey into home ownership. Our last and BEST piece of advice when looking at buying a new build construction is to TAKE A REALTOR with you on your VERY FIRST VISIT to the community. As wonderful as the agents in the sales office are, they are employed by the builder and are there to look out for the builder's interests. They are not there to look out for you. Take your own representation with you! Many builders will not honor an agency agreement or your relationship with your agent AFTER your first visit, so if you are planning on going to check out some model homes, let your agent know so they can either go with you or make arrangements with the builder to "register you" so that they can help you through the process of purchasing your new home and watch your back to make sure that you have all the things that were promised you in your new dream home.
We, at Your Red Door Real Estate Team, have years of helping our clients purchase new build construction homes and would love the opportunity to help you have the best possible experience in getting into your dream home. Contact us today to hear how we can help you purchase your new home dream! We can be reached at www.YourRedDoorTeamAZ.com or directly at 480-518-9907. We look forward to being your residential real estate experts!
Your Red Door Real Estate Team was founded in 2016 by Chelsea Anderson & Katie Evans when they joined forces to take the real estate world by storm! We specialize in traditional residential real estate which means we help sellers sell and buyers buy homes in and around the Phoenix Metropolitan Area.
Your Red Door Real Estate Team is known for helping sellers sell for 99% of list price in only 37 days on average which compared to the average agent nets our sellers 2% more money in less then half the time on the market. What does this mean for you as a Seller? More Money in YOUR pocket!
Our Buyers meet with us too for us to understand their situation and create a custom buying strategy to help them understand current market conditions and how they fit into that market and what opportunities we can create to capitalize on. What does this mean for you as a Buyer? Power! We want to set you up so you can compete with the best qualified buyers to win the contract on your dream home!