So you have decided that buying a new construction home is the best option for you (YAY!), now what? If you have never purchased a new construction property, the process may seem overwhelming. Working with a realtor that is experienced with new construction will make the home buying process much smoother. Let me walk you through what this process will look like!
Research Neighborhoods
Most of the time new construction properties are being built in up-and-coming neighborhoods, but this is not always the case. As with any home search, you will want to do your research on the location. Do not skip this step. Keep in mind the schools, commute time to work, convenience to grocery stores, and anywhere else you frequent. Property taxes are also higher in some counties, your real estate agent can help you research this.
Research Builders
As with any service provider, you do not always want to go with the cheapest option. Check out their reviews and their past work. Pay attention to how they communicate with buyers and do not be afraid to have conversations with your potential builders. Your agent may have a list of builders that they know and have worked with in the past.
Find a Lender
If you do not plan on paying cash for the build of your new home, you will need a home construction loan. Your realtor should be able to give you a recommendation to a lender who is familiar with the new construction process. These loans are different than your typical purchase mortgages because instead of doling out the entire amount of the loan at closing, they serve as a short-term loan that will allow for release advances throughout the construction timeline. Builders may also be able to offer their own financing. Make sure to do your research and get with your realtor to determine which option will be the best for you.
Choose Your Layout
In this step, you will meet with your builder to decide which style of home you want to build. Builders usually have a few different floor plans to choose from. The best perk when choosing a new construction home is that you get to choose the number of bedrooms, bathrooms, and floors on the home. Unless you are purchasing a home that is already in the process of being built. You will have several meetings with your builders to discuss upgrades and key elements of the home.
Inspection
Home inspections are recommended, even on a new construction property. It is important to have a realtor that is familiar with new construction homes because they will know a home inspector who understands the process. One mistake buyers make is assuming their new home does not need an inspection. Any issues or concerns you find will be communicated to the builder. Once they complete this list you will want to have the inspector come back one more time.
Home Warranty
The builder will provide you with a New Home Warranty. Make sure you read this over and understand what it entails. These will outline the potential problems, defects, or mishaps that you can expect to have repaired, or be compensated for, should they arise. Your agent will be able to answer any questions you may have at this step of the process.
Final Walk-Through
This is the last time you will walk through your home before you are handed the keys! You want to look for any cosmetic imperfections that may have been missed in the inspection, such as paint splatters, left-behind materials, or anything that looks incomplete.
Closing
It is finally time to close on your brand new home! Your agent and lender will hold your hand through this step, making sure you complete any last-minute items before closing day.
Buying a new construction home takes time, research, and a lot of patience. Having an experienced realtor by your side to help you through the process is essential. If you are ready to take the next step in purchasing a new construction home, give me a call. I specialize in new construction homes and would love to help you on this journey. In the meantime, browse the new construction listings on my site!
