How to Buy in New Construction

New construction vs previously owned homes

Many buyers prefer new construction, and they have their reasons.

Some say it’s because they love the idea of becoming the first owners. Others say its because new construction  guarantees everything is new. Many home buyers in Gainesville VA think that new constructions have fewer problems than previously owned homes.

If you’re considering to buy a Gainesville new construction, you first need to read this article shared by HGTV.

How to Buy in New Construction

Five steps to owning a newly-built home.

If you’re considering buying a newly-constructed home, follow these five steps to guide you through the process:

Step 1: Weigh the Pros and Cons

Nothing beats the feeling of being the first person to live in a newly-built home. Everything is shiny and untouched.

You can buy a brand-new home in one of three ways: buying a house already built on spec; having a semi custom home built as part of a development (you can choose from a set palette of finishes and upgrades); or having a purely custom home designed and built to your specifications.

Step 2: Research Neighborhoods and Builders

When buying in a new subdivision, consider working with a buyer’s agent who knows the area well, can set up home tours and walk you through the closing process. When researching real estate agents:

Remember, the listing agent works for the builder, not for you. They’re trying to hit a quota, not help you make the right decision for you and your family.

Many states regulate how agents deal with new subdivisions.

If you have your own agent, tell him up front that you’re interested in looking at new homes. He must accompany you on your first visit to any new subdivision; if he doesn’t, the builder’s sales rep will get the full commission if you buy a home there.

Step 3: Know What’s Standard and What’s Extra

Ask the builder about amenities and upgrades. Amenities are features that benefit the entire community like a clubhouse, health and fitness center or a gated entrance. Upgrades refer to added features or items you pay extra for to enhance your home, like certain types of flooring or appliances.

Get a feature sheet on the line of homes you’re interested in and read them very carefully, then compare feature to feature. Find out what comes with the base home price.

If you don’t understand exactly what the builder is offering, ask and take notes. There are no dumb questions. Not knowing can cost you real money.

Step 4: Get an Inspection and Home Warranty

Once you decide to buy a new home, make your sales contract contingent on a final home inspection by a professional you hire.

Never assume that because a home is newly constructed, it isn’t going to have defects. Municipal inspections for code violations are nowhere near as thorough as an independent professional inspection.

If possible, have the home checked during each phase of building, when potential problems are easier to spot. If the builder objects to this, consider it a red flag.

Protect yourself with warranties. All new homes come with an implied warranty from the builder stipulating that any major defect of the structural integrity of the home must be repaired. Ask for a builder’s warranty for a period of time following move-in (a year, for example) that covers any defects in craftsmanship. Preferably, this warranty should be backed by insurance.

Home warranties vary in length, what they cover and typically run from one to 10 years; the manufacturer covers appliance warranties. Make sure any warranty you receive explicitly states what is covered and what isn’t, and what the limitations for damages are. For extra peace of mind, have your real estate attorney look over the warranty to make sure it’s kosher.

Step 5: Close the Deal

Builders often have in-house mortgage lenders or ties to an outside lender. New homebuyers can use the builder’s lenders or find their own financing. Ask your agent for information on special funding programs available for first-time buyers. Contact at least two lenders and compare terms, fees, rates and points.

If you’re not comfortable with the legal process, get an attorney. Remember, sign nothing until you fully understand the meaning of the words.

Ready more about this article here : https://www.hgtv.com/design/real-estate/how-to-buy-in-new-construction