Everything you should know about new home construction

Everything you should know about new home construction

Living in a new construction home is a breeze. The thought of actually being the first person to purchase and live in that environment is very thrilling. It is hard to come across newly constructed homes when you are shopping for real estate in certain neighbourhoods but it is not impossible. When you do, you may be faced with a very difficult decision between buying the newly constructed home and already existing property.

Keep these tips in mind when you are purchasing newly constructed homes.

First buyers get the best experience with the home

Most new construction projects operate on a first come first served basis. They would want to have the construction started immediately and therefore will give you the best deals. If a project is taking place in phases, they will need results to qualify for a loan or get investors for the next phase.

New homes may not be listed in the local MLS

If you are interested in buying a new construction house, it is wise to contact a real estate agent. Builders usually have sales employees that market their projects. As a result you are not likely to see a new house posted online, on the newspaper or billboards. The builder is not involved in the local MLS.

Some homes are built in phases

The phases may take you longer to complete the home. A community may have as many phases as its size. Those who buy in the first phase buy them at an incentive while those who buy later buy them at a higher prize. This is because the real estate world is bound to appreciate leading to increased prices. Make sure to have annual inspections.

There is also no personal attachment by the building

This is one of the most overlook benefits in new construction homes. When it comes to old property, the seller may not be ready to move due to the emotional attachment and might even sell at a higher price. Also, a forceful eviction of such a seller may weigh you down emotionally. A new construction housing project that is overseen by a builder is only about the money. A builder is only interested in ensuring you qualify for a loan if you need it, making a profit and giving you the best in terms of quality.

New homes are presold

Builders will build house models and sell them to the buyer’s way before they are even built. Before purchase potential buyers are allowed to review the well laid out plans finishes and fixtures of these houses. The buyers get to know what their house will look like therefore making deposits on a housing design and community they like. They are allowed to make a deposit of up to 10%.

You may get upgrades to your house towards the end of the sale

Towards the end builders are more accommodating hence willing to negotiate. However, there is not a chance that you will get price reduction since this information will be published hence affecting sales. Therefore they can give you better appliances or furniture as a discount which is a good deal too. For a first time owner a new construction house is a good idea. It comes with less baggage and a sense of new beginning, but don’t over borrow if you cannot afford it, loans can be expensive if you don’t have the means to repay them.