Tips on Buying New Homes

Be sure the Contract works in your favor!

When spelling out the particulars of an agreement with your builder, ensure you protect yourself by having safeguards written into the agreement, such as:

     * Placing your deposit in escrow

     * Detailing your upgrades

     * Allowing you access to the construction site to check on progress

     * A 30-day advance notice of the closing date

     * An explanation on what the fine print means in the warranties of the builder and the  

       manufacturer

Financing – What’s best for you?

Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages.  However, because “home loan” lending is highly competitive, you have many financing choices other than those being offered by the builder.  Shop around for everything, from rates to lender fees.  Appraisals, inspections, surveys, attorneys, and closing fees can vary as well.

Just because it’s new….Doesn’t mean it’s perfect!

Yes, it’s new and typically, it’s built with modern materials that are durable, low maintenance, stronger, quieter, and safer.  But because nothing is perfect, even if it’s new, consider hiring a reputable, licensed home inspector.  Then create a builder “punchlist” from what you’ve learned to address any problems before closing.  Consider budgeting for items to be modified or added later on.

Many new home buyers use a real estate agent to help them negotiate the best price and terms with the builder.

BUYER ADVANTAGES YOUR BUILDER MAY NOT REVEAL

Immediate delivery - New Homes

Here's the fact that you may not be aware of.  Some builders have newly constructed homes available for immediate delivery.  Usually these homes are ready to move into within 30 days.  Even if some builders are eager to sell, they’ll probably keep that knowledge to themselves.

Immediate delivery homes are often available for various reasons:

• The community, where new homes are being constructed is nearly complete, so the builder proceeds to have the on-site-contractors build “spec” homes (homes built on speculation for sale) on the last lots.
• The model home is for sale.
• The contract on a home has fallen through.
• Builders include constructing homes for immediate delivery for buyers who are relocating or who have sold their previous home and need one to move into quickly.

Immediate delivery homes may be more desirable because, sometimes builders offer financing incentives or free options.  This may be done in place of chopping prices to appeal to buyers purchasing later in the building phase.  An immediate delivery home is an advantageous way to purchase a home if you need to move in quickly, or need a physical space to walk through and see before you sign a contract.  Be sure to inquire.