There are many benefits to purchasing a newly constructed home—you typically have a warranty, everything is brand new, and you won't have to worry about making immediate repairs. But buying a new home can be just as complicated as buying an older home. If you are in the market to purchase a newly constructed home, use the following tips:
Hire an Experienced Realtor
While the negotiations involved in buying a new home are a little different from buying directly from a private seller, it is still essential to have a real estate agent working on your behalf. When you visit the sales office of a home builder, the person helping you represents the interests of the builder, not you. Having your own real estate agent will ensure that the transaction goes smoothly and that your interests are protected.
Understand What You are Getting
Many home builders have model homes available to tour so you can get an idea for the different floor plans available. When you tour a model home, it is important to remember that most model homes have many upgrades that are not included in the base price of a newly constructed home. Before you make any decisions about the new home you would like to purchase, it is important to understand what features are standard, which are upgrades, and how much the upgrades cost. This will help you budget accordingly and ensure that you don't experience sticker shock or disappointment in your new house.
Explore Your Mortgage Options
Many new home builders offer mortgage financing to potential buyers, but you are not required to take out a mortgage through the builder. It is in your best interest to explore your different mortgage options and compare the terms of the builder's mortgage offer with those of other lenders. Taking your time choosing a mortgage can save a substantial amount of money in the long run, depending on the interest rate you lock in.
Get a Home Inspection
While everything in a newly constructed home is brand new, it is still a good idea to have a home inspection done prior to closing. A comprehensive home inspection can discover anything that needs to be fixed or repaired prior to you moving in. Having a home inspection done means that you won't discover any minor problems that occurred during construction that have to be taken care of while you're trying to unpack and settle in to your new home.