If you’re in the market to buy a new construction home, here are a few helpful tips that should help you get the process started on the right foot:
- Tell your agent that you’re looking at new construction. There are certain things, such as the base price, options, and negotiation of the contact, that you should be talking to your agent about beforehand so you’re not caught off guard.
- Take a look at your mortgage options. We highly recommend that you apply for a mortgage before you take a look at new construction homes. Most new construction purchase contracts in our area do not have financing contingencies. It’s very important to understand what you qualify for and what your costs are going to be before you make the offer.
- Know your floating rate.When you apply to buy a new construction home, you’ll get what’s called a floating rate. This rate will not be your final interest rate when you get your mortgage.
- Be flexible with the delivery date. If you’re looking at a brand-new home, most will be built from the ground up and take anywhere from four to six months to build. The builder will give you a timeline and a “delivery date”, but will probably end up changing. Every time I’ve bought a new construction property, the delivery has been delayed from the original point.
- Know your warranties.The builder will always give you a few warranties. Most do a one-year bumper-to-bumper warranty, as well as a 10-year extended warranty. They’re not all the same though, so make sure to do your research.
If you have any questions for me about buying new construction or about anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.