Buying a New Construction Home? The Devil is in the Details.

Most people would not normally begin the home buying process until they felt that they were ready to make a move. In the case of a New Construction home however, it is almost always advisable to initiate your search much sooner than that, even up to a year in advance of your desired moving date. I’ll explain ‘almost’ later.

Why give yourself so much lead time? Apart from the 6-8 month backlog that builders are experiencing right now, there are a fair number of working parts involved in the purchase of new construction, way beyond visiting the site and choosing a model.

For instance, you should know before you drive through any new construction site or visit model homes, that the sales representative is working solely for the builder. In other words, the sales person’s job is to make as much money for the builder as possible. Don’t get me wrong, this person is typically very knowledgeable but they are never working in your best interest. Don’t give up your right to representation- always talk with your Realtor before visiting or even calling a new construction site or a home builder’s office. Involving your own Realtor will cost you nothing but can save you a house-full of headaches and thousand of dollars.

Exclusive New Construction Advantage
Cash Back* Program

Another reason to begin well in advance is financing. Each builder has their own preferred lender, not to say that this is wrong. Though you may be required to get pre-approved by the builder’s lender, you are under no obligation to use them for your final transaction. Speak with your lender or lenders of choice, along with builder’s preferred lender. The builder may suggest incentives or a lower interest rate when using their lender. Compare all perks and terms of the loan including rates, fees and closing costs, against the other lenders you have selected.

Did you know that you are permitted to bring in an independent home inspector? This step can easily be neglected when purchasing a new construction home. I have found that the Builder’s home warranty does a fair job of adequately covering problems, omissions and code violations but an extra, unbiased eye is never a bad thing.

As for the ‘almost’ back there in the first paragraph… it is almost always advisable to initiate your search much sooner than that, even up to a year in advance… under certain circumstances, spec homes, models or back-on-market options may be available with average close periods of 30-45 days out. These are often unadvertised, not marketed in MLS and take some diligent investigation to unearth. I have had occasion to chase down several of these little gems for recent clients who’s circumstances dictated that they move quickly. If your dream is a new construction home and waiting 6-8 months is out of the question, give me a call. I’m always happy to help and I enjoy the hunt!

Check out Brooke Chaplan’s post for five more ‘must know’ facts about buying a new construction home.

5 Things Homebuyers Should Know About New Construction Homes

By Brooke Chaplan

Being the first person to own a newly built home can be a source of immense pride and enjoyment. Having the chance to build a house to your exact specifications gives you a great opportunity to move into a home that you can enjoy for many years.

As a potential buyer of a new home, there are some important things to keep in mind throughout the research and building process that will help make the process simpler. To help ensure you’re fully prepared, here are five things homebuyers should know about purchasing new construction homes:

There Are Lots of Options
It’s easy to miss when you walk through a completed home, but the number of options available when you’re constructing a new home is staggering. If you’re buying a home in a new development, you can simplify this decision-making process by choosing from certain pre-selected packages. Of course, you can choose each option individually, keeping in mind that this will take quite a bit of time and could result in an unexpected finished product if you don’t have a decent handle on interior design.

There’s Time Involved
New construction homes don’t just pop up overnight. Most new homes take a few months to build, meaning you need to have a plan for where you’ll live in the meantime. To be sure, the end result is more than worth the wait. It’s important, though, to keep in mind that the waiting period will likely be longer than if you buy a pre-existing home. To help maintain your excitement, you can drop by the building site on occasion to check out the construction progress.

Home Warranties Are Encouraged
There’s no doubt that home builders work hard to produce the best homes they can. However, that doesn’t mean that a home warranty is not a smart idea, even when the home you’re protecting is brand new. If one of your appliances should turn out to be a lemon, for example, you don’t want to have to pay to replace it when you’re already working hard to pay down your mortgage. Before you move into your new home, it’s important to understand the warranties that are available to you so that you can take advantage of the options that are best for your situation.

Editors Note*: All of the home Builders I’ve dealt with in Arizona offer a bumper-to-bumper home warranty that covers everything present on the day of close, for at least one year.

It’s Good to Have a REALTOR®
Even when buying a new construction home straight from the developer, it’s a good idea to have a REALTOR® to represent you. A real estate professional can help make the paperwork process much easier and ensure that you’ve completed all the small details to make your transition into your new home far smoother. Plus, a REALTOR® will ensure that you’re getting a fair price and you didn’t miss any details that could turn out to be problems later on.

It’s Totally Worth It
Even when the completion of your home seems a long way off, the reality is that moving into a new construction home is usually worth all the effort involved. Knowing that you’re the first family to make memories in a home serves as a daily reminder of the hard work that has gotten you to this point. Plus, with the right planning in place, buying a new home can be as simple as buying any other home!

Brooke Chaplan is a freelance writer and blogger. This article first appeared on RISMedia’s blog, Housecall. Reprinted with permission from RISMedia. ©2020. All rights reserved. *Original article may have been modified to meet AZ Real Estate Commission regulations, REALTOR guidelines and/or company policy. Modifications are identified as Editor’s Note.