Tips for Buying New Construction

Published on 7/30/2021

Tips for Buying New Construction

Buying a new construction home is a great option! Everything is new, clean, and you’re the first people to live there. You might be wondering what could possible go wrong? While this is a great option, there are a few tips to make sure you get the most for your money and time. 

First step: do the research.

You want to spend a good chunk of time before buying new construction doing your homework. Educate yourself on the different communities that are in the new build process. How long will construction take? What are the overall plans for development in the community or areas you like? 

Second step: find a lender.

Don’t wait on this step. It will help you know how much house you can afford and keep you within a set budget. Don’t start talking numbers with a builder until you know what you’re approved for. It’ll save you big time. 

Third step: settle on a realtor.

Typically, the builder will pay for the agent’s commission. So there’s no reason not to go with a great, experienced realtor. They can negotiate parts of the contract for you and be a great advocate with the builder. 

Fourth step: develop a plan.

Now that you have the loan, the realtor and you know what area you like, time to develop a solid plan. What are your must haves in a new home vs. your wants? Make sure you nail these items down with your realtor before starting to talk with builders. 

Fifth step: research builders.

You’re ready to find your builder! But don’t rush this step either. Do your due diligence. Read testimonials and reviews. Interview builders before settling on one to get a sense of their personality and how well you’d work together. Make sure they’re experienced, can offer what you need, and are trustworthy and reliable. 

Once you’ve settled on a builder, it’s time for you and your realtor to negotiate upgrades and pricing. Most builders will use upgrades as a way to then allow them to negotiate overall price. They have to maintain a certain value for continuing the neighborhood and further builds, so often they won’t just drop the price. But they do have wiggle room to negotiate price when you’re adding in upgrades. 

Sixth step: draw up a contract.

Even if you trust your builder, get everything in writing. No matter what, people forget what they say sometimes. Especially if you have a lot of modifications or upgrades. So draw up a detailed contract with everything promised and pricing before you start the build. This way you won’t owe more than you bargained for. Your realtor will really be a crucial part in helping you with this step. Lean on them and their expertise. And don’t forget a firm completion date! As you’ll be making living arrangements based on this, don’t neglect that in writing either! 

As always, keep us in mind if you need temporary or long-term storage during a build or after you move in. We’re always here to help.