Buying a newly constructed home is an exciting yet intricate process. Regardless of prior experience, navigating the ins and outs of a new build requires thorough understanding. To help you learn about the process of purchasing a new construction home, we have created a step-by-step guide from pre-purchase research to closing on your new home.
Defining Your Needs and Finding Representation
Start by outlining your needs, wants, and deal-breakers for your future home. This clarity is vital for targeted house hunting. Equally important is securing the right support: a dependable lender and a real estate agent committed to serving your best interests.
Researching Communities and Builders
Identify communities aligning with your preferences and explore the builders in those areas. Rely on various resources like online reviews and local groups to gauge builder reputation and quality.
Model Home Tours and Evaluation
Visiting model homes is crucial, but don't rely solely on them as these models often showcase top-tier upgrades. Evaluate the actual quality of work by visiting homes in different construction phases. This is essential to gauge the finished product's expected quality.
Negotiating the Contract
During negotiations, focus on aspects beyond the base price. Builders tend to avoid reducing the base home price for a variety of reasons. Instead, negotiate for concessions like closing costs, upgrades, or interest rate buy-downs.
The Building Process and Closing
Once you have made the deposit, you will visit the design center to select upgrades. Private inspections are recommended at different construction stages and it is important to actively participate in scheduled walkthroughs with the builder. Review the builder warranties meticulously, ensuring clarity on coverage and claim procedures. Finally, attend the closing to officially take possession of your new home.
Purchasing a new construction home is an intricate journey, but with strategic planning and careful consideration at each phase, it can be a rewarding and satisfying experience. For more in-depth information on this process, view our complete video guide below!
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