A newly built home and a pre-owned one are completely different, and not just for obvious reasons. Find out what you can about the new house you’re eyeing before making an offer.
When you buy a newly built home, you have the benefit of owning a home that has never been used before, as well as having access to information about how the home was built (systems, materials, etc.). On the other hand, if the home is only partially built at this point, there are still a lot of things that you won’t find out about until much later. To ensure that you purchase the right brand new house, keep these useful tips in mind.
1. You get to customize the home. While the house is still being built and there are features about it that you don’t like, such as the carpeting or the wall paint, you can talk to the builder about changing them. Builders can accommodate your request, and can even offer you several options in place of the original plan.
2. You have the option to get builder financing. Getting a mortgage pre-approval can be difficult, so it helps for you to keep your options open. If your builder is working with a bank, they can offer a financing option that can help convince your lender to pre-approve your loan. However, it’s still necessary for you to shop around for a good financing deal so don’t just accept builder financing without exploring other avenues and comparing rates.
3. You can take advantage of a buyer’s market. If you are purchasing a house during a buyer’s market, you can be at an advantage if you want to buy a new home. Builders will feel the pressure to sell if they know that there are a lot of pre-owned houses for sale, so they might be open to a price negotiation. On the other hand, a buyer’s market also opens up the possibility that you can get a pre-owned house as big and as well-built as a new house for less money, so make sure that you weigh your options.
4. You have dig around in a community that’s still under development. The home looks like it’s part of a great neighborhood that has amenities like a tennis court or a swimming pool – in the brochure, that is. Keep in mind that these attractions are part of the value of your property, so if the builders have yet to complete these features, they could be low on funds, which puts your investment at risk. To make sure that you’re not paying for something that won’t be built, go to the local building department, an attorney or a trustworthy real estate agent to find out if the builder of your house has posted bond for these amenities.
Just because you’re buying a new house for sale doesn’t mean that you don’t have to worry about anything. A newly constructed home also has quite a few disadvantages; be sure to know them before finalizing a purchase.
Jillian Cariola, Writer
(cover image by Henkster)