When purchasing new construction, it's important to be aware of certain key factors. Here are 10 essential things to know when buying new construction homes:
- Research the builder: Before buying a new construction property, thoroughly research the reputation of the builder. Look for reviews and check their track record for delivering quality homes on time.
- Understand the timeline: New construction projects may experience delays, so it's crucial to have a clear understanding of the estimated completion date and any potential delays.
- Plan for additional costs: Many new construction homes lack things existing homes have like window treatments, landscaping, and fencing. These things help provide privacy so make sure to schedule them with a contractor accordingly.
- Review contracts and warranties: Carefully review the contract and warranties provided by the builder. Pay attention to coverage for structural components, appliances, and potential post-purchase issues. Also, remember to register for any warranties after closing under your name!
- Visit the construction site: Regularly visiting the construction site allows you to stay informed about progress and ensure the construction meets your expectations. Anything amiss? Bring it up with your agent.
- Inquire about energy efficiency: Ask about energy efficient features including windows, appliances, HVAC, insultation, and EV outlets.
- Understand customization options: Inquire about the level of customization available during the construction process, such as selecting finishes, fixtures, or floor plans, and any associated costs.
- Get a home inspection and develop your punch list: Even with new construction, it's advisable to hire a professional home inspector to evaluate the property for issues or construction defects after the CO. After the inspection make sure you have a comprehensive punch list to go over with your Realtor and the builder.
- Review homeowner's association (HOA) rules: If the property is part of an HOA, review the association's rules and regulations, including fees, restrictions, and ongoing maintenance responsibilities.
- Secure financing and budget accordingly: Determine your budget early on and secure financing before making an offer. Make sure to leave room in your budget for anything you want to do to the home after moving in.
Remember to consult with a real estate agent and an attorney specializing in new construction purchases to receive expert guidance throughout the process.