Buying A New Construction Home
2. Hire A Real Estate Agent
If you’re buying a new construction home, you may feel like you can buy without a real estate agent, but you shouldn’t. When you hire a real estate agent, that agent represents you. The agent working for the builder represents the builder and may not always have your best interests in mind.
You’ll want a real estate agent who will watch out for your needs and ensure you’re getting the best possible deal. While you won’t use a real estate agent the traditional way to build your house, you’ll need their expertise when talking with the builder and contractors.
The right real estate agent can also counsel you on upgrades and even certain designs. Agents have an eye for detail, and they know value. They can quickly tell you if an upgrade is worth it or if you should skip it because it won’t increase the home’s value.
As you would for any service, shop around for a real estate agent. It’s best to interview at least three agents and see which one you believe is the best match. Don’t be afraid to ask tough questions and to gauge the agent’s experience in new construction.
3. Choose A Location
Buying a new construction home is about more than the home. You should carefully evaluate the area, too. When you buy a home, you invest in the neighborhood. Not only do you want a home that fits in well with the area (building a 4,000-square foot home in an area with 1,000-square foot homes won’t work), but you’ll want it in a neighborhood that you fit in well with.
When you’re deciding where to live, look at different neighborhoods. Evaluate important factors such as the crime rate, schools, accessibility and the distance to your favorite and necessary amenities.
If you work with a reputable real estate agent, you can ask about potential future developments in the area or any news/issues the agent knows about the area. The more you know about the demographics, zoning and crime rates, the better decision you can make for you and your family.
4. Research Home Construction Companies
Rather than choosing just anyone to build your home, do your research. Look at builders and construction companies in the area and nationally. Use the internet to your advantage, read online reviews and check a builder’s ratings with the Better Business Bureau.
It’s best to stick with local builders if you can, for a variety of reasons:
They can start the job sooner.
They may have relationships with local suppliers and vendors.
They know the local talent in the area when they need to hire subcontractors.
They will be around after the house is built if problems arise.
No matter which route you decide to go, it’s always a good idea to get two or three quotes. Look at the quotes side by side, comparing services, costs and timelines.
5. Design Your New Home
Once you have financing, choose your builder and have proper representation, it’s time to design your new home. This is why it’s important to choose companies you can build a good rapport with, as this step is important and costly.
Before you design your new home, you must decide what type of custom home you’re interested in – fully custom or semi-custom. If you choose a spec home, you’re stuck with the home’s current design until you own it and can make changes.
When designing your new home, you’ll work with the builder and their subcontractors and designers. When choosing your builder, ask detailed questions about the design process so you know what to expect.
If you have specific designs or features in mind, ask about them before choosing a builder/designer to make sure it’s something they can do.
6. Have An Inspection Completed
Even though builders follow specific inspections while building the home, it’s best to hire an independent inspector. The inspection ensures everything is completed up to code and that the home has a good structure.
Even though no one lived in the home yet, the inspector may find areas where the builder cut corners or missed something that needs fixing before you move in. Once you take possession of the house, the problems are on your shoulders. It’s to your benefit to get a professional inspection on your dime before you close. This will ensure everything is in good shape.
