Buying a home is an exciting experience. When you are looking at purchasing a newly constructed house in a newly developed area you will likely get a number of benefits, such as brand new appliances. However, it is important to consider potential issues that may stem from investing in a recently built house. There are different considerations you will need to complicate and being aware of these is crucial to a successful buying experience.
Follow these tips to assist you when purchasing a new home:
Still get the home inspection
While the home might be brand-spanking new, issues might still arise. Bankrate noted one of the biggest home inspection mistakes committed is not having a newly-built house inspected by a professional. Never assume the builder completed any task correctly. There may be foundation issues present or certain parts of the construction that were not properly finished.
Look up the builder's previous work
According to Redfin, you should always do a little research on the builder of the homes you are considering. Ask for a list of other homes he or she built and if you can contact current homeowners of these properties. This can help you a great deal when it comes time to make your decision and you can easily eliminate potential purchases if a builder refuses to supply you with other developments he or she has completed.
Discuss options with the builder
If the home is still under construction, Bankrate noted you can reach out to the builder or contractor if you have any requests prior to purchasing the home. For example, if you do not care for a light fixture, flooring or wall color, you might be able to negotiate a deal with the builder. This way you can potentially customize your home to meet your taste more closely.
Additionally, Bankrate noted because materials and employees are on site, making alterations is easier to do than if you were making requests regarding the appearance of an existing home.
Ask questions about the future of the neighborhood
Forbes noted that a newly developed area might not have an established community yet. Speak with the developer and inquire about businesses that might be moving in and who else is purchasing homes in the area. If you are a young family, you might prefer to live around other young families and business that cater to your unique needs.
Getting a feel for the future of the neighborhood is crucial when deciding whether to purchase a specific property.
Ensure all agreements are written
Before deciding to purchase a home, ensure that all your agreed terms are in writing for future reference, according to Redfin. Ensure that it is clearly outlined whether a room will be altered, a color changed or any other expectations you have based on your agreement.
If the home is still under construction, you should also include the expected complete date and what happens if the home is not ready for you to move in. Having a plan ahead of time can help immensely if issues arise down the line.
"Anything that involves new construction or phased development means you're at risk of the developer running out of money," stated Barry Zigas, a housing policy director for the Consumer Fereration of America, according to Bankrate.
When you have your agreement in writing, you can protect yourself from issues that may arise - particularly if you have a warranty on the house.
Understand the warranty completely
When purchasing a newly built home you typically receive a warranty. This means the builder will address issues that arise after you move into your new home. Knowing exactly what is covered is crucial. These documents vary greatly, and you might think you are covered for certain elements when you actually are not.
Additionally, understanding how long your warranty runs is important. They can cover anywhere from one to five years depending on the builder.
Buying a new home has a number of perks. You likely won't need to spend as much on maintenance because your appliances and systems are all brand new. However, knowing what to consider before investing in a recently built house ensures you make the best decision for you and your family.