6 Steps to Buying a New Construction Home
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Wouldn’t it be great if buying a home were as simple as it is in a game of Monopoly? All you’d have to do is find a desirable neighborhood, hand the bank a few bucks, and you’d receive a house. Of course, the home-buying process is a bit more complicated in real life (especially for first-time home buyers), but it’s not impossible. Competition among buyers in many markets has gotten intense, so if you’re serious about homeownership, you’d better get your act together. To point you in the right direction, we’ve prepared a road map of the home-buying process. From choosing the right professionals to signing that final contract, here are the typical steps you need to be aware of.
The professionals on your team will be able to help you home in on the right style and layout, but it doesn’t hurt to get a feel for what you might want in advance. Look for interior design inspiration online or research the latest smart home features to see if you think they’re worth the added cost. Since custom homes are the most complex new construction option out there, we’ll spend most of this article explaining the process. As the closing day approaches, you will do the final walk through of your new house. You will be given the rundown of all of the systems and features of your brand-new home and have the opportunity to inspect it for any minor defects that need correction prior to your moving date. “Your offer will likely include earnest money that will apply toward your down payment on the home and may include contingencies such as hiring a home inspector,” says Frank.
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New construction windows, like replacement windows, can be made from a variety of materials. Here are pros and cons of three of the most popular window materials, wood, vinyl, and aluminum. New construction windows are designed to be installed on a new home or an addition to a home. Unlike replacement windows, they come a with a nail fin so that the window can be nailed directly into the frame.
This builder needs to move to the new home so he can move on to his next project. In order to understand the best strategies for buying new construction, you need to be able to put yourself in the shoes of the builder. Prior to completion and calling for certificate of occupancy, you will walk through the completed property with one of our new construction representatives. Any issues will be identified and placed on a “Punch out” list for completion. BUILDING RESTRICTIONS have to do with minimal lot sizes as well as zoning laws. Most cities require a minimal of 10,000 square feet in order to build a single-family home.
New Construction Home Buying Tips
Different glass options, such as gas fill, the number of glass panes, and Low-E, can all affect your window’s energy efficiency. Aluminum windows are the least expensive and are low-maintenance, but they also offer the least energy efficiency of any window material available. Vinyl windows perform similarly to wood windows when comparing energy efficiency, but are significantly less expensive and require less maintenance.
Make sure all bank statements are dated within the last 30 days. At NewHomeSource.com, we update the content on our site on a nightly basis. We seek to ensure that all of the data presented on the site regarding new homes and new home communities is current and accurate.
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Some 86% of sellers prefer a buyer who has been pre-approved, as opposed to pre-qualified, for a mortgage, according to a 2022 Zillow survey. This step is usually the most fun for people who are buying a new construction home, but it can also be incredibly stressful. The decisions you make at this point are going to have a big impact on the look and utility of your home, as well as its final purchase price and future sale price.
If you’re building a new home you’ll probably want new construction windows. The main reason you should consider new construction windows is because they’re installed differently from replacement windows. Even though most builders hold firm on the base price of their homes, you should stay focused on the total cost of your newly built home and what you’re getting for that price. Another option is to look into state and local home buying programs that offer down payment assistance.
It’s their business and they usually aren’t keen on negotiating price. For one thing, if they cut the price for you, the next buyer is going to expect a similar discount. For another, they need to show their own lender that homes are selling for the prices they expected to. New construction eliminates that possibility because builders are required to follow today’s energy and code requirements. Sadly, the problems you find are going to be pretty costly — at least a few thousand dollars per repair. New construction also means the house and everything in it will be more energy-efficient.
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It is recommended that a newly built house should be inspected twice. The first time should happen while it is still under construction, just before the drywall goes up. This way, the inspector can make sure the electrical wiring and plumbing was done correctly. Anything that isn’t going to show up in the county records to lower the sales price can be negotiated. Any work you do to turn an existing home into your home is going to cost you.
You’ll probably notice from our infographic that the first 3 steps are the same in the new construction home buying process. Like so many things, it pays large dividends, to begin with, education. Signing the contract is the last step before picking your options! Unlike buying a resale home, each builder has their own contract, and works with you to complete it.
Then, a home builder constructs all of the homes in that planned community. Tract homes can be condominiums, townhomes or single-family homes. Most homes in the community will look similar, and shared amenities are common. Similar to spec homes, you may be able to select some finishes in advance, depending on the timeline.
For all of the hard work that goes in to the previous steps, this one might be the hardest. Depending on the size of your home, the time of year it’s being built, and the developer’s job load, you may be waiting at least six months or more for your new construction home to be complete. That’s a short time compared to how long you’ll probably be in your home, but a long time when all you want to do is settle in. This step takes place with your builder’s design expert or team, and is usually split up over several sessions since it can be hard to make all of these decisions at once. Note that you’re not going to know how everything looks together until your house is complete.
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