When shopping for your home, you’ll discover that most homes on the market are resales. Yet, one out of four homebuyers purchases a new home. Should you be thinking about buying a new house, here are some points to consider before you visit your first model home:
1) Get in touch with your agent and do your homework. Determine the size of your downpayment, then work out a monthly debt load so you can determine a comfortable price range.
2) Get the facts about your builder. Before making a final decision, it is wise to check out the reputation and financial strength of the builder. Get “spec sheets” on home features and details on lot availability and delivery of your home.
3) Be sure to take advantage of builder incentives that offer free upgrades or credit off the sale price of the home. When looking at options or upgrades, keep in mind that the less expensive the base price of the house is, the more you can add without fear of overpricing it for the neighbourhood. Remember however, that you can add a deck, finished basement or landscaping later and sometimes for less money.
4) Often buyers don’t realize that there may be room for negotiating price, upgrades or options. Builders may also offer discounts or special financing to help close a sale. Make sure you or your agent ask those questions.
5) Make sure the contract you sign with the builder works in your favor! Ensure you are protected by having safeguards written into the agreement, such as - details of any upgrades, 30-day advance notice of any change to the closing date, allowing you access to the construction site to check on progress, etc.
5) Consider hiring a reputable home inspector—just because the house is new, doesn’t mean it is perfect. Create a builder “punchlist” from your inspector’s findings; this way you can be sure that any problems are addressed before closing.
Finally, some builders have newly-constructed homes available for immediate delivery. An immediate delivery home is an advantageous way to purchase a home if you need to move in quickly, or need a physical space to walk through before you sign a contract.