7 Things To Know When Buying A New Construction Home
There is a lot of new developments going on in Orange County, and if you’re looking to buy a home, you might be wondering, is it better to go with a new build or an already existing house? That is a great question, so I thought today we would talk through nine things to consider when buying a new construction home.
1. Why would a home buyer purchase a new construction over a pre existing home?
The simple answer is that they are NEW! :) Usually builders work with designers and so the homes are up on all the trends and modern layouts. Th new builds also have the latest technology including Internet wiring, smart home options, and modern finishes. Some of the fun part is that the buyer can possibly pick out some of the finishes customizing the home. Depending on when the home is purchased, buyers may also get can offer incentive that relate home can not.
2. Do new homes come with a guarantee?
Most builders will give a 2-3 year home warranty to give the home owner some pieces of mind with their new home. Cosmetic issues are covered for up to a year, systems covered fro up to two years and structural issues will be addressed up to 10 years through a third party company. Before getting into contract, it would be best to ask to review the warranty in advance. You also want to make sure that your inspector will come back after year one and do a red inspection.
3. Should you still do a home inspection when under contract even though it is a new home?
Short answer again is YES! But note, that it is not a contingency for the sale of the home. This would be done for informational purposes only. This inspection will also help guide the builder with any last minute touch ups or finishes before close of escrow.
4. Can I expect my New home to be without any issues?
No. Every home will come with issues new or old. It can be as small as an appliance not working to flooring installed wrong. One thing that becomes an issue after closing is drainage.
5. Do new homes increase in value or are they like a new car and lose value?
Over time, just like with existing homes, the home will increase in value. Trying to sell a new build in a short turnaround could be harder because other homes in the community are still being built.
6. What would you caution a new construction buyer before they close other home?
House shop with an agent and always get pre approved before looking so you know what you can afford win a monthly payment. Sometimes builders work with preferred lenders that might offer better rates. So t is worth exploring your options. Working with an agent will help you get things like free appliances, or smaller upgrades. New builders usually don't budge o price.
PRO TIP: For national builders it's best to look at homes towards the end of the quarter when they have to report their numbers to the shareholders.
7. Any personal stories about things with builders that you can advise on?
Sometimes homes are not finished when they should be and so buyers have to be flexible. But it will be worth it in the end.
Buying a new build home is a unique experience that requires careful consideration and planning. By keeping these seven points in mind, you can navigate the process with confidence and look forward to making wonderful memories in your new home.