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• Archived Blog Post

  Date / Time: 6/16/2009 8:39 PM UTC

  10 Ways to Save Time and Money When You Search for a Brand New House
  

  One out of every four home buyers choose a brand new house, even though most of the houses on the market are resales. There are certainly advantages to buying a resale home, such as lower prices, mature trees and landscaping, and the simple fact that most of the bugs and defects of the house have been worked out years before. Still, some people desire a new home for many reasons, such as greater energy efficiency, modern amenities and floor plans, and the simple fact that everything is absolutely brand-spanking new.
  Here are ten things you should know before you visit your first model home:
  
  1. Contact a real estate agent.
  Sit down with them and define what you want in a new home, and what you can afford. Your agent then should be able to provide a proper listing that will narrow your search and save time. And if you’re planning on selling your existing home, they can help you determine how much cash you will have after the sale to put a down payment on a new home, and help you budget accordingly.
  
  2. Know the difference between sellers’ agents and buyers’ agents.
  When buying a new home, it’s important to know that the sellers’ agents represent the builder, and have their best interests in mind. By hiring a buyers’ agent, you can feel confident that someone knowledgeable is on your side, and will help you negotiate the best deal possible. A buyers’ agent should also be very knowledgeable about home construction, warranties, overall building quality, finance options and even lot selection.
  
  3. Find a builder that is right for your needs.
  Some builders specialize in different aspects in home construction, and may have different priorities when it comes to overall workmanship, the quality of materials, or innovative floor plans. Others may specialize in offering the most value for the money, or offer outstanding warranties on all of their work. Define your own priorities when it comes to buying a brand-new house, and find a builder who shares the same priorities.
  
  4. Do your homework on the builder of your new home.
  Research and find out about the builder’s history and reputation. Find out if they are financially secure. Obtain "spec sheets" on everything from energy efficiency and floor plans to lot availability and delivery*.
  
  5. Learn as much as possible about the neighborhood.
  Find out about the surrounding community, and investigate such amenities as nearby shopping centers and public parks. Ask the local land-use officials if they have any plans for other construction in the near future. Investigate your commute to work, varying the times and noting the flow of traffic throughout the day.
  
  6. Find out about options and upgrades to your new home.
  Options such as additional powder rooms, sun rooms, or upgrades to the kitchen such as granite counters and upscale appliances can definitely add to the resale value of your home. Ask about builder incentives, which can involve free upgrades to your new home, or a discount off the final price. At the same time, note that major upgrades such as finished basements, decks and extensive landscaping can usually be done at a later time, for a lot less money.
  
  7. Know how to negotiate with the builder.
  When it comes to new homes, builders usually allow some room for negotiating the price of options and upgrades, especially if a home has already been completed but hasn’t yet sold. You can also negotiate for "premium lots" with better views, since the lots originally cost the builder the same amount of money when they purchased the land. Most builders will offer some sort of incentive to close a sale faster.
  
  8. Make sure the contract meets your standards.
  Protect yourself during the sale by placing the deposit in escrow, having all your upgrades and options detailed in writing, and having a guarantee that you will be able to visit the lot freely during construction. Ask for 30-day notice on the closing date, and request a specific explanation on all warranties from both the builder and other manufacturers. Having everything spelled out in writing will help prevent any discrepancies with the builder after the house is completed.
  
  9. Explore your financing options.
  Many builders who represent larger companies can offer special financing packages designed to get as many people into the new neighborhood as possible. Be sure to compare the terms with other lending institutions, since there is fierce competition in this area. You can also shop around for the best prices in appraisals, inspections, surveys, closing costs and attorneys.
  
  10. Don’t expect everything to be perfect.
  Building a new home is a complicated venture, and sometimes small things fall between the cracks. Hire a building inspector before you take delivery on your new home, and come up with a "punch list" for everything that needs to be fixed. Make sure the builder commits to making everything perfect in your new home.
  • Tags:
  • home buying; Real Es
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