Are you thinking of buying a new construction home?
Buying new construction is a little bit different than buying an existing home and has a few nuances to keep in mind.
So I have five tips for you to avoid making costly mistakes in the home buying process when it comes to shopping and buying a new construction home.
Hi, Tami Savage with eXp Realty.
#1: Talk with your agent before visiting any new construction sales offices. Some builders now require
the agent to register you, the home buyer, and/or for the agent to be present for the first meeting.
If you're on a whim and your agent isn't with you, well, call your agent first and give them a chance You can go into the sales office and inform the sales representative right up front that you have a realtor representing you. If they ask you to give them your contact info, give your agent's information instead.
This is super important because the sales representative for the builder is representing the builder's best interest, not yours, and if they don't know you have an agent, they suddenly become what's called a “dual agent,” meaning they represent both sides, and who do you think their first priorities going to be?
Instead, you want an independent agent who represents your interests and advocates on your behalf.
Really, you have nothing to lose and everything to gain here.
#2: Although it is a known fact, or maybe not, there often isn't any room to negotiate the list price of a new home; however, you may be able to negotiate other concessions like upgrades, closing costs, and warranties.
#3: Be sure to shop around for home loans. Too often, buyers will only consider loan products offered by the builder's preferred lender because they offer some incentive. However, shopping around for the most favorable loan terms could save you money in the long run.
For instance, if a builder offers a $10,000 incentive by choosing their lender, but an outside lender charges a quarter percent less in the interest rate, that can save you more
over the life of the loan, making the $10,000 incentive actually more expensive in the long run.
#4: Choose upgrades that will increase your new home's value. A common upgrade that adds value is flooring, so perhaps upgrading from tile to hardwood or luxury vinyl. On the other hand, top-of-the-line cabinets, while they may look great, probably won't add a whole lot of value to your new home. Keep in mind that you can do upgrades outside of the builder after you own the home, and even better is the fact that some upgrades may even be more affordable doing them after close of escrow, possibly even by your own contractor.
#5: Be sure to budget for additional items you will be responsible for besides the cost of the home. Items such as appliances, light fixtures, and landscaping can all add up quickly and you don't want to be caught short on money to complete your home.
I'm here to help and would love to guide you through the process on your journey.
I'm Tami Savage with eXp Realty. Your Key to a New Lifestyle.
Thanks so much for watching and make it a great day.