10 Tips When Buying A New Home
Here are 10 tips to save you time and money when buying a new home:
- Get in touch with your agent: Before visiting model homes, meet with your agent to determine a comfortable price range for your new home. Calculate the net proceeds from selling your current home or qualify your income if you’re a first-time buyer.
- Sellers’ agents versus buyers’ agents: Keep in mind that the sales agent in the model home represents the builder. Consider working with a buyers’ agent who can best represent your needs and provide valuable knowledge about home construction, financing, and value for money.
- Find the right builder: Builders specialize in different aspects of home construction, such as craftsmanship, innovative use of space, financing options, and customer support. Determine your specific needs and preferences, then research and compare builders accordingly.
- Research your builder’s reputation and financial strength: Before making a final decision, check the reputation and financial stability of the builder. Obtain spec sheets that cover home features, energy efficiency, lot availability, and delivery details.
- Investigate the neighbourhood: Gather information about the community, amenities, future development plans, homeowner’s association rules, commuting routes, and potential impact on your lifestyle.
- Choose options and upgrades wisely: The base price of the house determines the flexibility you have in adding options and upgrades. Consider adding features that can enhance the resale value of your home. Take advantage of builder incentives and discounts when available.
- Negotiate with the builder: There may be room for negotiation on price, upgrades, or options, especially if the builder has completed but unsold homes or premium lots. Inquire about lot pricing and explore discounts or special financing options.
- Ensure the contract protects your interests: Safeguard yourself by including necessary safeguards in the agreement, such as deposit protection, detailed upgrade specifications, construction site access, advance notice of the closing date, and clear explanations of warranties.
- Explore financing options: While builders may offer special financing packages, it’s essential to shop around and compare rates, fees, and terms from multiple lenders. Consider all aspects of financing, including appraisals, inspections, surveys, and closing fees.
- Hire a home inspector and consider a real estate agent: Even though a new home is built with modern materials, it’s still important to have a reputable, licensed home inspector evaluate it before closing. Consider budgeting for future modifications or additions. Many new home buyers benefit from working with a real estate agent who can help negotiate the best price and terms with the builder.
By following these tips, you can make informed decisions, save money, and ensure a smooth home-buying process.
Buyers have certain advantages when it comes to purchasing newly constructed homes that builders may not always reveal. Here are some key advantages to keep in mind:
- Immediate availability: Some builders have newly constructed homes that are ready for immediate delivery. These homes are typically completed within 30 days, allowing buyers to move in quickly. Builders may not always advertise this availability, so it’s worth inquiring about immediate delivery options.
- Financing incentives and free options: Builders may offer financing incentives or free options for immediate delivery homes. This can be a way to attract buyers without reducing prices for later phases of construction. Taking advantage of these incentives can provide additional value for buyers.
- Opportunity to see the physical space: Purchasing an immediate delivery home gives buyers the advantage of being able to walk through and see the actual property before signing a contract. This allows for a better understanding of the layout, finishes, and overall feel of the home.
- Ideal for quick moves or relocations: Immediate delivery homes are particularly beneficial for buyers who need to move in quickly, such as those relocating for work or those who have already sold their previous homes. It provides a convenient option for finding a new home without a lengthy construction timeline.
- Limited competition: Since immediate delivery homes may not be widely advertised, there may be less competition from other buyers. This can give buyers more negotiating power and potentially lead to better terms or pricing.
When considering a newly constructed home, it’s important to ask the builder about any immediate delivery options available. These homes can offer distinct advantages, such as quick occupancy, financing incentives, and the ability to physically inspect the property before committing.