Did you know that 75 percent of Americans said that buying a home was a priority for them? Buying a home can be a stressful and expensive process, but ultimately very rewarding.
With so many people interested in purchasing homes, buying new construction is a great option for many first time home buyers.
If you’re thinking of buying new construction instead of searching the existing housing market, make sure you know what to look for by reading this guide.
Tips for Buying New Construction
For many people, choosing to buy a newly constructed house is their preferred option when deciding to purchase a home. However, many Americans aren’t fully informed about the value and costs of homeownership. Here are some tips to get your feet wet in the home buying hunt.
1. Research Builders and Buyers Agents
Before choosing a builder it is helpful to find the right buyers agent to help you on your home buying journey. Your real estate will work for you, unlike a listing agent that works for the builder.
Research buyers agents and find someone you trust that can help with every step of the way, even if you’re out of town.
Your buyer agent will help you negotiate with the builder and determine warranties that are offered. These are essential aspects of buying a new home.
Never assume negotiations are out of the question with a builder. Work with your buyer agent to get the best possible prices and warranties for you and your family.
2. Research Your Mortgage Lender
When you are buying a new home it is essential to research your mortgage lender thoroughly. You should shop around for mortgage rates in order to get the best deal.
Lenders will compete for your business if you have several quotes from in-house and outside lenders. Don’t just accept the builder’s lender because of their incentives. They may not be the best deal.
After you shop around, use your knowledge to negotiate costs and or interest rates.
3. Pick Your Neighborhood
When looking for a new construction home, be sure to weigh the pros and cons of each neighborhood. Important neighborhood aspects to consider are:
- Curb appeal
Choosing to buy new construction means that you may have a longer commute from a city center. This is not a bad thing, but something buyers should keep in mind.
Some buyers do not appreciate the look of new construction neighborhoods because they are less established. Just keep in mind that it will take a few years for the saplings to grow into shady trees, or for all the houses on your street to be built.
Walk around your potential neighborhood and ask current residents what they love about their new home. This is a great way to get a better feel for the personality of the neighborhood and meet your future neighbors.
Don’t forget to ask about the HOA fees in your potential neighborhoods before choosing your perfect fit. These fees can add up and will be an ongoing cost for you as a homeowner.
Buy a Newly Constructed Home
With these tips in mind, you’re ready to start the home buying process. Buying new construction can be daunting, but working with a professional buyers agent will make the process seamless. Contact us to get started today.