Buying a new construction can be stressful- there are tons of options! While there are a lot of great reasons to buy a new build construction home, there can also be some pitfalls. Check out our top five things to avoid when signing your name on the dotted line!
1) Use an Agent that has New Home Sales Experience
New home developers may sometimes put pressure you to utilize an on-site agent and also a pre-approved lender, title and insurer company. It’s a blunder not to have your own realtor. A realtor can protect your interests and can ensure that all interest and costs rates are within industry standards. Realtors with new construction experience know about the builder and the community which can ensure that home builders are incredibly cooperative – after all, they don’t really want to tarnish their reputation. Plus, agents are usually free to buyers, so there’s no reason not to use one!
2) Don’t Sign Anything Until You’ve Negotiated Every Detail
Always surmise that nothing is acceded upon until it is in writing. Once it’s in writing, don’t surmise that it can be transmuted or negotiated. Don’t fall for the “writing up the contract so that no one else can get your house” ploy. Instead, ascertain that the contract you sign has everything you negotiated written before you sign. Did you like the layout of the model kitchen? Make sure everything comes with it exactly as you saw it- the lights, island, floor, even the amount of cabinets! The last thing you want is to walk into your new home disappointed because the kitchen is smaller and the bedrooms don’t have trey ceilings or a fan!
3) Always Get a Home Inspection
Many people postulate that home inspections are for older homes that may have asbestos, structural quandaries, and other liabilities. This is erroneous! While many new construction homes in Charlotte NC come with full warranties and are inspected by the builders, those warranties conventionally only last 12 months and many issues surface only after that first year. An independent, professional inspector ($300-$400) can help you eschew very costly repairs years down the line.
4) Double Check Their Lender by Pricing Other Banks
A great number of builders who build complete areas are actually publicly bought and sold firms. These companies make a lot of money by financing – not simply building and selling – homes. As a result, many builders will give you enormous incentives or pressure you to use their lenders. The issue with this is that the builder’s lender will most likely have higher interest levels and higher closing costs when compared to a traditional lender. Generally, you could have the stipulations removed to enable you to choose your own lender and revel in some incentives. When a builder insists that you use their lender, kindly reply that you will be shopping around. Your Realtor will be able to give you multiple other options in the mortgage world.
I have been involved in new build construction homes, and if you are interested in buying one please let me know. Thanks for reading!