There are many pros to purchasing a new-build home: being the first person to live in the house, having a limited warranty on the home, and being able to help choose the flooring, counter tops, and extra features are just a few benefits. But purchasing a new-build home involves more than just touring a model home, signing a contract, and moving in after completion. If you're considering purchasing a new-build home, keep the following things in mind:
Hire Your Own Real Estate Agent
The people working in the sales office attached to model homes represent the builder and its interests. They may be very friendly and be able to answer all of your questions, but it is important to have your own agent working on your behalf to ensure that the deal is fair for both parties. In addition, while many builders offer mortgage financing, it is in your best interest to contact your own bank and several other mortgage lenders to see if more favorable terms are available.
Budget for Extra Expenses
When your new-build home is completed and you get the keys, be prepared to have to spend additional money to get the place ready to live in. Many base model new-build homes do not come with appliances, such as washers, dryers, refrigerators, ovens, or dishwashers. Read the contract with your builder carefully to see if the cost of an appliance package is included in your contract. Many people who buy new-build homes completely forget about the cost of window coverings. These are typically never included in the cost of a new-build, and depending on how large the home is and how many windows you have, purchasing blinds or shutters can cost anywhere from a few hundred dollars to a few thousand, not even counting the cost of curtains or drapes. Your move into your new home will go a lot more smoothly if you plan for these expenses in advance.
Home Owners Association
Many communities with new-build homes have homeowners associations. The association typically has rules and guidelines to ensure that everyone keeps their yards in good condition and helps maintain the beauty of the neighborhood. But some HOAs can have regulations that do not work with your lifestyle, so it is very important to know what all of the HOA rules are before you agree to purchase a new-build home. It is also a good idea to find out what the HOA fees are -- these are extra fees in addition to your mortgage payment, so you will want to make sure that they fit into your budget.Share