If you’ve been looking to purchase a home recently, you’ve probably seen how there’s been a shortage of existing homes across the United States. If you’ve been having trouble finding an existing home, it might be time to explore purchasing a new construction home.
New construction homes are a great choice for many homeowners because new construction properties provide homebuyers with the opportunity to choose every aspect of their home from the builder to the lot. While this approach provides you with more control, it can be overwhelming.
Fortunately you can make purchasing a new construction home more manageable by following the tips below.
Find a real estate agent
When you go to a homebuilder, the construction company may suggest using the listing agent that they work with, however you should work with your own agent because they are required to look out for your interest.
When reaching out to potential agents, you should ask questions such as:
- How many new construction homes have you closed for buyers?
- What is your general availability for answering questions?
- What relationships do you have with quality home builders in the area?
- How do you keep track of new build timelines, and how do you handle problems that come up during the build process?
Secure your financing
After choosing an agent to work with, you need to secure a loan, unless you’re paying in-full. When evaluating mortgage providers, you’ll need to discuss interest rates, types of mortgages, fees associated with the loan, and the typical timeline for the mortgage.
Select a builder and lot
Choosing a reputable builder is essential to the success of any new home construction. Similar to evaluating realtors, when choosing a builder it’s important to conduct your due diligence by reviewing their portfolio and customer reviews, researching past builds and if there are ongoing issues, asking about the typical project length, and how escalation costs are handled if materials suddenly jump in price and the cost of appliances like hvac systems or refrigerator.
After covering the fundamentals, you’ll need to choose a lot. During this process you should consider if you want to be near the freeway or in the center of the neighborhood, the types of amenities you desire (e.g. parks, community pools), and if you want a property with shrubbery and trees or is completely clear.
Once this is done, you’ll be ready to start developing your floor plan and getting into choosing the finer details of decor and types of appliances.
Navigate the journey
If you currently own a home and have procrastinated putting your home on the market because you think your home sale must align with the purchase, it’s worth noting that there are many options to buy a home while selling your own such as making a purchase with a sales contingency, a bridge loan, or a home equity loan or line of credit.
The great thing about realtors is that they can help you make sense of purchasing a home, and also help you make informed decisions throughout the journey so it is more manageable.
