Shopping for a new home is exciting but it can feel a bit difficult to navigate at times with all of the choices. One of the first things you’ll want to decide is whether you want a home that has some history or a new construction home.
There are positive and negatives that go along with each option, and you’ll want to make sure you have all the information to make an informed decision. Let’s look a bit closer at the requirements in place for you as a home buyer and the builder of your new home.
- New Construction vs. Established Homes for Sale
- How Can a Real Estate Agent Help?
- How Do I Find a Reputable Builder?
- Can I Choose My Neighborhood and Lot?
- Will I Have to Join a Homeowner's Association?
- What About Upgrades for New Construction Homes?
- Negotiating Terms with Builders
- Inspections, Completion Dates & Contracts
New Construction vs. Established Homes for Sale
At first glance, you may think that the best option to save money is to purchase an established home, but this is not always the case. Homes have previous owners can require more attention when it comes to repairs and renovations than a newly constructed home.
There are times when the warranty will cover things beyond the first year of ownership, which could save you thousands of dollars. Some items covered by a warranty may include floors, walls, doors, electrical parts, structural issues, and plumbing.
An established home makes perfect sense if you’re looking for a home with a special charm that can only come from an older property. However, if you want the opportunity to customize your home, you may want to choose a new construction property.Suggested: What Comes with a House You Buy
How Can a Real Estate Agent Help?
A real estate agent can be a big help when it comes to buying a new construction home because they can help narrow down the options much in the same way they would an established home. They will be with your during home tours, handle the paperwork, and work through negotiations with the builder.
How Do I Find a Reputable Builder?
If you’re looking for a builder with a positive track record that has proven they are dependable, your real estate agent can help. Most real estate agents have a list of preferred builders that they know are reliable.
Search for the builder on the Better Business Bureau and check for reviews on Google or Yelp. Doing some research now can save you time and money down the road.
Can I Choose My Neighborhood and Lot?
Will I Have to Join a Homeowner’s Association?
Homeowner’s associations are the norm these days, so you shouldn’t be surprised if there is one that manages the community standards where you’re building a home. The fees collected provide amenities and go towards the upkeep of shared areas.
The builder will be able to connect you with someone who knows the requirements for the community when it comes to joining the homeowner’s association. Of course, if your new construction property is being built on a piece of land that is not affiliated with a managed community, you will not likely need to consider an association.Suggested: 6 Steps to Buying a House
What About Upgrades for New Construction Homes?
Negotiating Terms with Builders
When it comes to the building contract, it’s a good idea to have the real estate agent go over the contract terms. They may be able to negotiate some of the terms in your favor.
Some contract terms include inspection details, warranty visits, and move-in dates. Without your real estate agent present, you may feel pressured to accept the terms as written.
Inspections, Completion Dates & Contracts
The builder will have inspections done that are meant to catch any issues that could delay the project. You may want to hire private inspectors if something causes you concern.
The builder will provide you with an estimated completion date that could change depending on the construction phases and any stalls. Discuss this with the builder and be clear on your expectations and any penalties that will be in place if those are not met.
The best source of information about local communities and real estate topics is your real estate agent. Give Joshua Norber of the Norber Real Estate Group a call today at 248-785-3737 to learn more about the area, discuss selling your house, or tour available homes for sale.