New Construction advice for home buyers
Advice before you consider buying new construction homes
Elise is one of a few agents that has completed training in helping buyers with NEW CONSTRUCTION purchases.
Here are some suggestions when buying new construction:
- Use a Certified New Home Specialist (Elise) that can help you with site evaluation, lot selection, negotiation and keeping on budget.
- Consider your community lifestyle needs first, then select an area (don't let cheaper home prices drive you to a location so far away that you will be unhappy or have a major daily commute).
- Get your new home INSPECTED before move in! A MUST DO. Also, get periodic inspections.
- Don't overspend on non-essential upgrades or forget to consider resale value; builders make the most money on the upgrades
- Be careful about using the builder's title and mortgage company-compare rates and be sure that mechanic's liens will be cleared
- Consider getting a real estate attorney to review the langauge in the builder's contracts. Most of the clauses are there to protect the BUILDER only and may not be changeable. Be sure you know what you are getting into.
- Be sure to budget for HIGHER TAXES. All new construction has higher assessed values.
- Remember, the home you build will NOT look like the model home, unless you are willing to pay dearly.
- There will be many decisions in the home building process; do you have the time and energy?
- Consider that you may be subjected to years of ongoing projects which may mean dirt, noise, unfinished roads, etc.
Below is a breakdown of costs to build in 2013. The average builder's profit margin is built in at about 9% but often averages closer to 6-7%.