Must Ask Questions When Buying a New Construction Home
As a buyer the thought of moving into a new construction home that has never been lived in before can sound amazing. All new finishes and appliances mean you should have years before you have to start worrying about costly repairs. The thought of a blank canvas that you can put your stamp on might sound like just what you are looking for.
The costs of a new construction home have jumped $100,000 over the past 7 years, but that isn’t slowing production. 2015 saw an increase in new construction homes built and 2016 looks like it will be passing those numbers as well. If you are in the market for a new construction home, make sure you ask these questions.
Do you offer incentives for using your financing?
Many companies selling new construction homes are not willing to negotiate on the sales price of the homes they sell, so they offer incentives in other ways. Before making an offer, obtain lending rates and information from a few lenders and then ask what kind of incentive you can get by using their preferred lender. Many times you can get discounts on closing costs or even free upgrades on the finishes in your house by using their preferred contacts.
What comes standard?
If you have ever walked through a show house you know that the way that house looks is not the way your house will look unless you are willing to pay for costly upgrades. Builders put all the extras into the show houses to entice buyers to want to add them into their house. They are banking on the fact that once you see the beautiful hardwood floor you will be willing to pay for it in your house over carpet.
When you are looking through the house make sure to ask in each room what comes with the standard base pricing and what the upgrades are. This will help you not to fall in love with something you can’t afford.
Where is the community headed?
Before buying in a developing community make sure you know what the plans are for it. Will you be living in a construction zone for the next 10 years, or are they not looking to add many more houses?
What are the rules and fees of the homeowner’s association?
The rules set by homeowner’s association range from a lot to a little depending on what community you live in. Understanding the rules before buying will help you determine if that is a community that you will want to live in. The HOA can control everything from your ability to put a fence up to what color you can paint your house. Make sure you are comfortable with their rules before agreeing to buy.
Do you offer warranties?
Even in a new construction home problems can arise quickly. Whether it is a broken washer/dryer or a leak in the roof, you will want to know if you have a warranty that covers the expense. Make sure you understand exactly what their warranty covers and what the rules are so you don’t accidentally null your warranty.
If you are getting all the answers you were hoping to hear then you should keep moving forward. Before closing the deal ask to speak with other homeowners who have purchased in the community. By speaking with old owners you can be assured of what type of company you are dealing with and how the quality of their work is.