Buying a new home in SW Florida can be daunting. Building a new home can be even more so. Here are ten tips that can help you navigate the waters of new construction buying.
1. Not All Agents Know The New Construction Business
Real estate agents tend to develop their skills in particular niches. Some agents familiarize themselves with the new construction business. Many construction companies have affiliated agents, and while they are amazing, their job is to sell the builder. The independent agent’s job is to sell you your dream home. There are agents that are available in the construction business and can walk you through the process of deciding what you want and don’t want. If you are going to build new construction, build something to love.
2. Savings Programs Can Help
Numerous reasons exist to buy a new home, and one is the savings that are available from various lenders. Between federal, state, and local lenders, there are a variety of programs out there to make homeownership accessible and budget friendly. The best part is that your agent has connections to lenders you can contact, and know which lenders have the know-how to help!
3. Negotiations are Important
Unlike previously built homes, you typically can’t negotiate to lower the price – builders aren’t this flexible. However, many hard-working builders are willing to negotiate with you about other options (also known as “back-end options”). Your real estate agent can negotiate with your chosen builders for upgrades, such as a granite countertop dual sink in the master bathroom, or even help you with available negotiating tools you can use to get the upgrades you desire. Sometimes you can talk the builders into paying closing costs. You benefit in the long run from negotiating with your builders.
4. What Is Included With Your New Construction Home?
What most people don’t know is that the model home you look at isn’t always the base model. Many times, you can see upgrades intertwined in the model home, which can mislead you. Your agent’s job is to help you understand exactly what you will be getting if you purchase the home. He or she needs to either accompany you to the viewing or help you with a list of questions to ask to make sure you are clear on what you would be purchasing or where there may be potential for a price increase.
5. Who Is Building Your Home?
Ask questions and determine who will be building your home. “Buyer beware” is always a good standard to have. Many online forums exist to research your builder. Review what previous clients have experienced and if there have been any issues with the builder recently. From the BBB to Yelp, or even asking friends and relatives, you should be able to get a pretty good idea of who is building and if the work is exceptional or not.
6. Warranty Peace of Mind
There are some major benefits to Buying New Construction, including knowing that everything will be up to code. Many builders will have a warranty that you can purchase, or that builders will include in your new home. Enjoy peace of mind while you begin to build your new life in your new home, knowing that if an issue arises or an appliance doesn’t work right within the warranty time frame, the warranty covers it. Not all warranties are created equal, so let your agent help you decipher what warranty benefits the builder includes.
7. No More Repairs
It is common for buyers of pre-existing homes to discover issues in their new home that need repair. Many homes in the pre-existing market will require more than one type of repair. Many repairs can be expensive, such as a new roof, a complete overhaul of electrical wiring, or possible hidden rotten wood. By building a new home, you can relax with peace of mind, knowing that there won’t be immediate repairs before or after purchase. Commonly needed repairs in pre-existing homes arise due to the water heater, garage door, or other items that are as new as ten years old. By building a new home, you can avoid these costly repairs.
8. Your Preferences Are the Priority
One of the best benefits of a new construction home is the fact you get to choose your colors and patterns. Many times, people have been looking to buy a home and immediately find five things they do not like about the carpet or counters. Buyers tend to enjoy spending more time picking out what they like rather than wondering if they will have buyer’s remorse later. Newly built homes tend to have more open floors plans than older homes of different eras. Open floor plans are a draw for many buyers who are contemplating building instead of buying pre-existing homes.
9. Choose Which Building Route You Want To Take
The agent’s job is to help you decide between an architect, hire a contractor and build a custom built home, or go with the semi-custom home builders. Semi-custom homes are those that are offered as models, that you can customize while keeping the basic floor plan the same. If these aren’t your cup of tea, we can help with pre-built type homes and help to find financing to go along with them.
10. Build a New Home and Leave Yourself Financially Better Off
The final benefit to consider about building a new construction home is the fact that buying a home will leave you better off financially. Newly constructed homes, like others, will grow in appreciation and allow for you to have money in retirement or to borrow against if need be. You can also expect to have green appliances – no not the color green, but energy-saving appliances that will help year after year to keep your wallet bigger and your bills smaller. There are also tax savings on the mortgage interest to claim each year.
Your real estate agent can help you discover all of the advantages of building a new construction home for you and your financial portfolio. Please contact us today to discuss the benefits that can help you better your future in your new home.