Things Every New Buyer Should Know About New Construction
The thought of being the first person to live in a particular new house is thrilling. When you start shopping for a house to buy, you will have to come across newly constructed houses for sale. You might be faced with a difficult decision between buying this exciting new house and getting an already existing house.
Here are a few things that are important for you to keep in mind about new construction homes
New homes are presold. Builders will build house models and sell them to the buyer’s way before they are even built. Before purchase potential buyers are allowed to review the well laid out plans finishes and fixtures of these houses. The buyers get to know what their house will look like therefore making deposits on a housing design and community they like. They are allowed to make a deposit of up to 10%.
Some homes are built in phases which take longer to fully build. A community may have as many phases as its size. Those who buy in the first phase buy them at an incentive while those who buy later buy them at a higher prize. This is because the real estate world is bound to appreciate leading to increased prices.
There is also no personal attachment by the builder. This is one of the pros of a new construction home compared to an existing home where the seller may not be ready to move due to the emotional attachment and might even sell at a higher price. Also a forceful eviction of such a seller may weigh you down emotionally. A new construction housing project that is overseen by a builder is only about the money. A builder is only interested in ensuring you qualify for a loan if you need it, making a profit and giving you the best in terms of quality.
Likewise, First buyers get the best piece of the cake. Most new construction projects operate on a first come first served basis. They would want to have the construction started immediately and therefore will give you the best deals. If a project is taking place in phases, they will need results to qualify for a loan or get investors for the next phase.
New homes may not be listed in the local MLS as well. If you are interested in buying a new construction house, it is wise to contact a real estate agent. Builders usually have sales employees that market their projects. As a result you are not likely to see a new house posted online, on the newspaper or billboards. The builder is not involved in the local MLS.
Lastly, you may get upgrades to your house towards the end of the sale. Towards the end builders are more accommodating hence willing to negotiate. However, there is not a chance that you will get price reduction since this information will be published hence affecting sales. Therefore they can give you better appliances or furniture as a discount which is a good deal too. For a first time owner a new construction house is a good idea. It comes with less baggage and a sense of new beginning.