The decision to buy a new home is ideal for maintaining value in the long run because of lower maintenance and energy costs, the awesome warranties, and desirable features. So are you getting the most bang for your buck?
These are the questions to ask before buying new construction!
Do you have your own representation?
First things first, get yourself a buyers agent! A realtor can help you make decisions on which upgrades can affect your homes resale value. They can also assist with comparing recently sold homes in the area so you can be sure the home you are purchasing is a great value. If you want to save money and a whole lot of hassle, hire your own Realtor when buying a new home. Your buyers agent will have your best interests in mind! The builder covers your Realtors commission, so having someone in your court costs you nothing and will end up saving you a ton of money!
What is the public opinion of the builder?
Take a little time out to research the builders reputation just as you would check out reviews of that new restaurant down the street or a new place to get your haircut. Word gets out if a builder has bad customer service or does not complete projects in a timely manner. Your Realtor will have an idea about this as well. If you don't take the time to research, others will and this will have a effect on the resale value of your home a few years down the line if that builder has a reputation of poor quality construction!
Do you understand the builders contract?
Most builders use their own contract that is very different from the standard offer to purchase. Please sure to read carefully and understand your obligations! Consult your Realtor or attorney with any questions or concerns.
What comes standard and what is a upgrade?
You are touring the model home and you have fallen completely in love except what you see isn't what you get. Come to find out those features will sometimes cost you an arm and a leg. Think about the mark up on specific upgrades and if it worth it to have it completed before you move in or is it possible to have the work done later at a lower cost? Your realtor can advise on which features will have the highest resale value!
Cathy with Level Homes gushes about why construction is the way to go, "Modern Floorplans! It's about the livability, the layouts allow full home functionality in a smaller square footage. Energy efficient, clean, you can customize to your liking, and you're not buying other peoples problems! Safety is also a great advantage when buying a new home. Builders comply with the most up-to-date building codes." So even when everything you see doesn't come standard, there are tons of advantages and opportunities to customize your new home! Trust me, one visit to the builders design center and you'll want to stay all day! Hopefully, Cathy can fuel us with some coffee!
How long do you plan on being in the home?
My advice is to hold off selling until a neighborhood is sold out. It would be difficult to compete with the deals and incentives offered by the builder. Chances are a buyer would choose a brand new home over a home that is a few years older in the same neighborhood.
What is your moving time frame?
Builders will not give you an exact closing date because there are so many uncontrollable factors that could affect the homes completion time (weather, permits, material delivery, etc). Do you need to sell your home before moving in the new one or do you need to give your apartment complex a certain amount of notice? Your builder should be able to give you enough notice so you can plan accordingly!
Is there an HOA? If so, what are the fees and restrictions?
HOAs are a bitter sweet thing, they are in place to protect your neighborhood's resale value, so everything continues to look beautiful and inviting but therefore, they come with restrictions of what you can do on your own property! Do you plan on painting your home pink with purple polka dots? (I hope not) Most likely all color changes would go to go through HOA approval, but, seriously, please don't do that.
Find out what's covered. Not all warranties are crested equal! Knowing what is covered and what's not for how long is important. Ask your realtor to help you obtain this info early on so you can address any concerns upfront. Level Homes is an example of a builder that has awesome warranties! Cathy Michelena with Level Homes says, "No worry about large ticket items breaking down (HVAC, plumbing, windows)." It's all about the peace of mind! What a beautiful thing! See the example below courtesy of Level Homes.
New construction is a wonderful option when purchasing a home, just be sure to educate yourself as you would with any large purchase! An educated buyer is a confident buyer!
If you would like to learn more about new construction, feel free to contact me!
A big thank to Cathy Michelena with Level Homes for putting up with me and providing some great info for our buyers! :-)
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