Buying New Construction for the First Time? Here Are the Dos and Don’ts You’ll Need to Know Before Jumping In
Considering buying a brand-new home? Look no further, here are the definite dos and don'ts of buying new construction.
The journey to homeownership is such an exciting time in your life. You’re looking at new construction as an option for your new home and love the idea of buying a brand-new house that has never been lived in before.
You will be the first person to cook in the kitchen, relax in the tub, and host get-togethers in the backyard. However, you want to arm yourself with the tools and insider information so you don’t get too carried away with the new build. We’re going to equip you with the top dos and don’ts of buying new construction.
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The dos of buying new construction
Keep the following steps in mind when purchasing a new construction home:
1. Decide on the type of new construction you want
Once you’ve decided that you want to purchase a new construction home, it’s time to determine what kind of new build you are looking for. What fits into your budget, and how much time do you have to devote to the process? Here are three types of new construction homes to consider: Custom, semi-custom, and spec homes.
Custom homes are exactly as they sound…customized to your needs! These are typically one-of-a-kind homes and tend to be more expensive than spec or semi-custom homes. You will start by purchasing a plot of land and then hiring a team to plan and complete the project from start to finish.
These homes take the most amount of time to build because you need to hire each person on the team including an architect, general contractor, and a variety of sub-contractors. This is a time-consuming process and you will need to give your input on everything from the floor plan to the bathroom tiles.
Finding a plot of land to purchase for your custom home can also be difficult, and you will want to take your time to decide on where you could see yourself living. You may want to be up in the mountains overlooking an alpine lake, or purchase an oceanfront lot so you can hear the waves gently crashing every morning.
Semi-custom homes give you some flexibility and choice but you’re not putting in as much time and effort as you would with custom homes. You’re choosing from pre-set finishes, and you may get to choose paint colors, types of flooring, fixture finishes, and appliance packages.
You will also be able to choose upgrades for certain items if you want to add some luxury features. For example, instead of the standard travertine tile floors in the entryway, you may be able to upgrade to marble tiles if you are willing to pay extra (or negotiate).
Spec homes, also referred to as production homes, are homes that are built without any particular buyer in mind. These allow you to choose a few paint colors and add-ons, but you will mostly get pre-built features that the builder has already decided on.
These homes will have shorter timelines, less customization options, and will be almost move-in ready. This can be a great option for buyers who want to purchase a new home but aren’t looking to spend the time customizing (and waiting on) their new home.
2. Research and vet your preferred builders
Once you decide on the type of new construction home you want to purchase, you need to research potential builders. You can check out online review sites, builder websites, and drive by other homes they have built in the area.
Other places to find out more about different builders include builder open houses and home shows. Local mortgage lenders, title companies, real estate attorneys, and real estate agents will also be able to give you a list of their preferred builders.
If possible, try to get in touch with homeowners who live in a home built by a builder you are interested in to get their thoughts on how the process was and how the house is holding up. The National Association of Home Builders suggests asking questions such as: Are you happy with your home? If you had any problems, were they fixed promptly and properly? Would you buy another home from this builder?
3. Research the neighborhood and surrounding areas
Pay attention to your commute time, access to local amenities, and potential natural disaster zones when researching neighborhoods. Do a trial drive from the neighborhood to your work or other places you frequent to see what the commute is like.
Check out neighborhood events, festivals, and community organizations to learn more about the area and the people who live there. It could also help to make a list of amenities that are important to you and see if these places are nearby. You may want to be able to walk to a coffee shop, a supermarket, or a dog park, or may want a short drive to a biking trail or local restaurants.
