Have you fallen in love with the perfect model home in a new construction neighborhood? I love them too.
Buying a resale house versus new constructions are very different processes.
Having personally sold thousands of homes I know how important it is to think of a few essential things when purchasing a new construction home.
Probably the most important to know when purchasing new construction is the importance of working with a realtor or a real estate agent. Yes, real estate agents represent buyers all the time on new construction purchases. It can be confusing for you when you go into a model home and a sales representative provides all of the information and answers all of your questions, but they work for the builder, the seller, and you should want someone representing you. Many realtors like myself are familiar and specialize in new construction and our input is invaluable. Having someone on your side, representing your best interests, not the builders is important, and it doesn’t cost you any money. Your agent fees are paid by the builder and you do not save any money if you have an agent, in fact, you’ll most likely end up paying more without representation because of what you don’t know.
Number two point you need to understand is understanding the different costs of new construction. You see that roadside sign that says houses start in the five hundreds. Then you go into the model home and everything available is priced closer to 600,000. That’s because advertised price is for the cheapest model with no upgrades or a lot premium. Construction options, does your builder offer a bonus room option or the option to change the living room into a den or that extended master bathroom? If these options typically are almost costs more and will increase the price of the home. And then there’s cosmetic options, these are the fun ones, going to that design center to pick out all of your floors and cabinets can be the highlight of the building process and so much fun, but you can also get a big dose of sticker shock. So compare what their costs will be in comparison to having a third party do the upgrades and don’t forget you’re paying the interest for a lifetime of the loan on all those fancy upgrades.
I hope this information helps all of you out there thinking about buying a new construction home.