A Guide to Buying a Newly Constructed Home

Posted by Unity Home Group® on Thursday, May 3rd, 2018 at 10:40am.

Four Things to Consider Before Buying a New Construction HomeA newly constructed home is truly inspirational to many buyers because they have the opportunity to start fresh and make every memory their own. But while it may seem as though a new house has nothing to hide that doesn't mean there isn't more to the story than meets the eye. To get a quality home at a reasonable price, a buyer has to take a slightly different strategy than they would with a traditional home sale.

Potential Delays

Construction crews have to put up with everything from unexpected weather to meticulous zoning inspectors. Even the most experienced of foremen may not see certain delays coming, so buyers have to be understanding when timelines are pushed back. On the other hand, it is possible for a construction crew to overestimate general delivery time, so buyers may have to each excuse with a grain of salt. Talking to a real estate agent or conducting thorough research on the crew's reputation can go a long way toward deciphering whether or not a delay is legitimate or not.

Seller Expectations

A seller of a new construction home in Homewood is often not a private homeowner and may have few emotional ties to the home, so that they may have a very different attitude when selling. For a normal home sale, a seller may be willing to work with a buyer because they have a new job that starts in two weeks. Or they may be willing to let the home sit on the market until they get the exact type of buyer they're looking for. The original developer is often going to want to maximize their profits however they can. They're also going to sell more homes in the future, so dropping the price for one buyer will set a dangerous precedent. It all boils down to the fact that buyers can't play by typical rules.

Buyer Negotiations

Instead of asking the seller to drop the price by $10,000 and then yo-yo'ing back and forth from there, buyers would be smarter to ask the seller to upgrade their kitchen or to take care of the closing costs. In some cases, the builder-seller may not allow for any buying contingencies. For buyers who haven't commissioned the home, it's best to approach a seller that's had the home on the market for longer than a month. Every day the newly constructed home sits empty is a day that eats into the seller's profits. Buyers commissioning a home from scratch shouldn't despair though. Developers may also be willing to negotiate a good deal prior to the completion of the home as a reward for the committed buyer.

Important Specifications

Buyers will have to be detailed about what they want and when they want it when it comes to their contracts. This can often make paperwork an excruciating process, but it's all necessary to safeguard the buyer against shoddy workmanship or unnecessary delays. No matter how straightforward or common sense something sounds, it should be written into the contract and formally agreed to by both parties. Buyers should also have a qualified inspector visit the home prior to moving into the home.

Brand new homes tend to be more expensive on the whole, so it's important for buyers to maximize every dollar they spend. Thankfully, preparation, research, and the right real estate agent can go a long way when it comes to getting everyone on the same page.

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