Helpful Advice for New Construction Homebuyers
Here are some tips if you’re considering purchasing a new build.
There are a lot of things that you’ll need to think about if you want to build a brand-new home. Today we wanted to offer some helpful advice if you’re considering this path.
The first thing you need to know is that the representative at the construction site is working for the builder, not you. That’s why you need to seek out your own representation from an agent who has experience in new construction transactions. They’ll know the tricks of the trade, including the need for multiple third-party inspections to keep the builder honest and make sure you get what you need in your purchase.
Another thing to think about is incentives from title companies and lenders that are partnered with the builder. They will make money when you work with them, so they may offer you a discount, but it’s not always the best decision for you. We recommended shopping around to make sure the incentives they offer are honest.
There are a number of things that an experienced agent will know that you won’t. For example, they’ll know that the sewer line can be crushed by landscaping equipment, so they’ll be sure to emphasize that on the inspections.
Another important thing to note about new construction is that if you have a home to sell first, you’ll want to know what the value of that property is. Have a real estate professional go out to your home to give you a true market assessment of its value. I’m not talking about an appraisal or online estimate. I’m talking about a true market assessment from a true market professional.
Finally, interest rates are starting to rise, and they’ll rise a few more times this year. New homes can sometimes take up to a year to finish construction. It’s important to work with a lender who can help you lock in a rate earlier rather than later to protect you against these increases that are definitely coming. It could save you tens of thousands on your mortgage in the long run.
If you have any questions about buying new construction, what your home is with, or real estate in general, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.