Are you thinking about getting a new construction home with all the new bells and whistles? Ten questions you need to ask the sales representative before you get too excited and sign a contract. And above everything else, be sure you have your own representation because the agent at the builder’s job is to protect the seller and get them the best terms and price. Now here are the 10 questions you need to ask before buying a new construction home.
1. How long has the builder been in business and building in the area? You want to ensure you’re working with a reputable builder who knows your market, who’s knowledgeable about the local area and market conditions.
2. Can the builder provide three references of past clients? You want to know how the builder handles repairs and meets deadlines.
3. What are standard and upgrade finishes? Make sure to receive an itemized list of the upgrade finishes so you know what’s standard and what’s an upgrade. Remember, those models have all the bells and whistles to make you want to buy them, but most of that fancy shiny stuff will be added to the price tag of the home.
4. What is the timeline for each building phase? For example, the days it will take to lay the foundation and complete framing of the house.
5. Can you have a 4-point inspection of the property? Four-point inspections are shorter evaluations that focus on four key areas in a home: electrical system, plumbing, roof, and the HVAC system. This can be costly. But you can hire licensed independent inspectors to double check the builder’s quality of work during key phases of the construction process. Most builders welcome it because it helps affirm the quality of their work and protects them.
6. What warranties are provided with the house? Typically, the builder offers a one-year warranty with the purchase and new appliance warranties, but there are extended warranties for things like construction, windows, and foundation, etc.
7. Is landscaping included in the front or back?
8. What is the size of the lot? Make sure they include it in the purchase price or is there a lot premium?
9. Does the builder offer any incentives with purchasing the property? Sometimes, builders will give a closing cost credit and if you use their preferred lender, they will give you even more closing cost credit. But again, be careful as the mortgage broker is also wanting to keep the builder happy, so make sure there is no conflict of interest.
10. Is the builder aware of any major developments planned now or in the next 5 years near the property? For example, plans for a cemetery to be built in the back of the homes.
I hope these tips help you. Be sure to reach out to us if you’re thinking about buying new construction, don’t forget the agent at the office is there to protect and negotiate on behalf of the seller and you want someone in your corner too. It doesn’t cost you more money and you most likely may end up actually paying more without proper representation.
Again, this is Raymond Eaddy and your property is our priority.