The thought of a brand new home is appealing to many - and for a good reason. All new systems and structure, maintenance can be much easier than on that of an older property, the brand new fixtures and latest flooring options - the list of new build perks goes on. Before you go tour model homes and get wowed into purchasing one right there on the spot, there are a few things that you should keep in mind.
1. Bring your real estate agent with you from day 1. Even if you just want to be nosey and aren't ready to buy just yet, ask your agent to tag along. If you don't, most developers will not allow them to help you from that point forward. While the developer will always have sales agents of their own, it's always best to work with your own representation from day one to make sure your interest is best protected.
2. Ask the builder what the incentives are for working with their preferred lender. Rather than immediately switching lenders, go back to your trusted lender, and ask if they can match the builder's incentive. 9/10 they can match most or all of the incentive offered, and you can work with someone you trust. The builder may still need you to apply with their lender to get the contract going, but you won't be forced to work with them.
3. You will need a flexible timeline and some patience. It can take anywhere from 6-18 months to have a new home constructed. The building timeline will depend on the developer, weather conditions, and more; the national average is 7.7 months. The timeline is one of the most significant things you need to consider if you’re thinking about shopping for a new build. Your estimated closing date is just that - an estimate. There is always room for delays and you need to be aware of that before you get into contract and start scheduling the furniture delivery. Recent construction delays, supply shortages, and shipping backlogs are hurting countless new communities locally. If you have a home to sell before purchasing your brand new home to qualify, you’ll want to chat with your Realtor® about a possible short-term rent-back agreement or a long escrow period to accommodate this timeline.
4. New build homes are NOT perfect. Get a home inspection. There will always be room for human error, so do yourself a favor and have a home inspection done before closing. Most brand new homes come with a developer or manufacturer warranty, so take advantage of that. Having a home inspection done will ensure that everything is running smoothly, and anything that isn't at that time can be addressed.
New builds can be a great way to get into your dream home, without having to do a renovation project and there are options that qualify for down payment assistance if needed. If you have questions about any of the new build communities in town, send me an email.