When looking for a new place to live in, not everyone wants to get a secondhand home. Some want to have the ability to fully customize the design and features in the home. Others do not want to inherit the typical issues that come from used homes—worn carpeting, torn wallpapers, kids’ scribbles on the walls, and many more. Only a new construction home will do.
Purchasing a new construction home involves an entirely different process compared to buying an existing property. There are some unique considerations, including the duration of the construction phase as well as the price for additional upgrades. To prepare for your upcoming new construction home purchase, check out these helpful tips that first-time buyers need to know.
1. Choose a reputable and reliable home builder.
One of the first things you need to do when planning to buy a new construction home is to choose a home builder. Good sources to get recommendations from include your family and friends as well as online reviews on aggregator sites. While finding home builders is relatively easy, it is narrowing them down to one that can be quite challenging.
You want to choose a home builder that is both reputable and reliable. Check if the contractor is licensed, bonded, and insured. All Canadian provincial governments regulate home builders and require them to obtain a certification to work. If a contractor fails to show their license, you should think twice before hiring them.
Not all home builders are equal. If you have a preferred type of home design or feature, you should check out their portfolio. Choose the builder with prior experience with the type of home you have in mind so you will have a smooth construction phase.
2. Hire your own real estate agent.
The builder’s sales agents are paid to represent the builder. Regardless of what sweet deals and features they may tell you, they are still there to look after the interests of the builder. They may employ high-pressure tactics in order to convince you to sign the contract without delving deeper and reading the fine print. You most definitely do not want to deal with mechanics liens that are attached to an existing property.
In the same way, you need your own real estate agent to look after your own interests when discussing a new construction home deal. Unlike a builder’s sales agents, your own agent will be responsible for explaining the legal language in the contract and is required to disclose the positive and negative aspects of the deal.
3. Verify which features are standard and which are extra
The best way to check what your new construction home will look like is to visit a home builder’s showroom. However, you will most likely see a model home that is packed with a bunch of features. In reality, not all the features showcased here will be included in the basic home. Some of them are upgrades and will require additional costs.
So before you sign the deal, make sure that you know which features are standard and which are extra. Many builders make the bulk of their profit in the upgrades. These upgrades usually have the highest profit margins and therefore could cost you more compared to hiring another contractor when the home is finished. To save money, consider which upgrades you can install after construction is done.
Buying a new construction home is a bit more challenging than simply purchasing a used home. If you want to have full control of how your home will look, then be prepared for the usual construction issues like project delays, changes from the original plan, and unexpected events. It will be worth it. Good luck in getting your dream home!
About the Author:
Chris Woodard is the Co-Founder of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers secure their lien rights and get paid faster by automating the collection process for unpaid construction invoices.
Are you a #HappyHomeowner? We’d love to hear about it! Tell us on social media or email email@example.com.
South County Mortgage is a licensed mortgage brokerage providing better than bank service and better than bank rates to Rhode Island residents for over 20 years. Visit our website for more info, www.scmtg.net.