How Do I Buy A New Construction Home?

How Do I Buy A New Construction Home?

New Home Construction Buying Tips

If you have reached a point in your life when you are ready to purchase a new construction home, congratulations! This can be such an exciting time in your life, but it also can be a source of stress if you’re not sure about how to move forward. So let’s say you have made the decision to buy a new construction home; easier said than done, right?

How do you even go about buying a new construction home?

We have put together these five tips to make your life easier and reduce some of that stress when it comes to buying a new construction home.

New Home Construction Education

1. Educate

This is by far the most important thing you can do when buying any type of home. Getting yourself educated is time well spent and heads off a variety of problems. Getting educated begins with finding an experienced realtor who can guide you through the process and provide negotiation skills when working with the builder. It’s a good idea to research and even interview realtors to find someone who has a clear understanding of what you want in a new construction home and can work well with your personality. Your choice of a realtor can impact how well your wants and needs are going to be communicated to the builder.

Get a Realtor

It’s a good idea to research and even interview realtors to find someone who has a clear understanding of what you want in a new construction home and can work well with your personality. Your choice of a realtor can impact how well your wants and needs are going to be communicated to the builder.

Find Some Land

Your new realtor will help you in your search for that perfect piece of land to build on. Together, you can research neighborhoods, schools, traffic patterns and other important considerations. A good realtor familiar with your choice of an area can be extremely helpful here. Remember, you are looking for a place where you can build a new home and be happy, potentially, for a lifetime. Find a location you love!

Interview Builders

Now you will need to research builders and find one who is experienced, can work within your budget and has a verifiable history of satisfied clients. You can also throw in easy to work with and integrity for good measure! This may seem like such a daunting task but, now that we have internet, it’s as easy as Googling “new home construction contractors [insert your area].” You should be able to find plenty of reviews for each builder you are considering.

Once you have made a list of potential builders, review it with your realtor to gain any additional insight and make a plan to sit down and interview each of them. Don’t rush this part of the process because you are anxious to get started on your home; a good, respectable contractor is crucial.

2. Financing

Anytime you are looking to purchase a home, whether it’s new construction or existing, you must have the right financing to do so. Spend some time and shop around looking at different lenders and the rates they offer.

If you found a good realtor this is an area they can often times be a great asset. Most realtors have a number of lenders they work with and can recommend. Once you have chosen a lender you need to get pre-approved so you know what your budget is before choosing your home.

3. Negotiate

Part of your conversation with each builder will include the price tag associated with your new home construction project. When you have either chosen your builder or have it narrow down to a couple of potential ones, you will want to begin negotiating prices. It's highly recommended to have your realtor present with you for this one. Your realtor is an experienced negotiator and does this for a living so they will be less likely to budge on prices and help you to stick to your budget during this process.

During the negotiating process, you will want to lay out all the specifics about the house you are having built. For the builder to give you an accurate estimate, he will need to know all the details. If the builder has a model home you have been looking at, you will need to discuss any differences you are expecting in your home. If you don’t want all the bells and whistles the model home has or you want something added, then now is the time to say it because it will affect the price of your project.

Finally, when you and the builder have come to an agreement, make sure everything is in writing.

4. Guarantee

If you are buying a new construction home, you are probably buying something one that hasn’t even been built yet. So make sure your builder will give you a guarantee. Not to beat a dead horse, but get absolutely everything in writing. This is another reason to have a good realtor involved, to make sure nothing falls through the cracks and you end up paying for it later.

5. Inspect

When it comes to a home inspection many people think a brand new one doesn’t need it. Think again! Your new home will definitely need to be inspected. Mistakes happen and builders forget. A good home inspector will be able to find things the builder may have overlooked or done incorrectly. Never ever skip the inspection!

How Do I Buy A New Construction Home? Infographic

How Do I Buy A New Construction Home? Infographic

To help minimize the stress that comes with the uncertainty of buying a new construction home, we are including “How Do I Buy A New Construction Home?” infographic to download and share with friends and family. This infographic will help make the process easier for your new home construction project. Please share a comment with us below about your experience with buying a new construction home.

We can help

Our team at deWit Construction & Remodeling offer many services that include new home construction and home additions. If you are looking for a new home contractor and want a quality built home within your budget, then we can help with that! Call us today to set up an appointment.

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