It’s exciting buying a newly constructed home. You are the first one to leave your mark on the property. You also don’t have to worry about any surprises previous owners may have left behind. If the home is within your budget and being built in a neighborhood you love, it makes sense to consider purchasing one.
Before you fall in love with a developer’s glossy pictures, you should be aware of a few things.
5 Things to Know About New Construction Homes
Just like you don’t buy a new car without knowing all of the facts, it’s the same as purchasing a home.
1. Don’t Fall in Love with the Model Home Design
Most model homes are gorgeous with top-of-the-line fixtures, flooring, and countertops. Even the layout is exactly what you want. The only problem is most model homes are not the standard design the builders use. Your newly built home will not resemble the model.
Model homes are not built on a base price. The goal of these houses is to entice buyers with the available options. It also means you can pick the upgrades you want and can afford. Adding upgrades like dedicated media rooms for your A/V receiver and other components also increases the overall value of the home.
2. Know What Your Financing Options Are
Most builders offer on-site financing from various lenders, but don’t forget to do your research. You have various lending options including conventional home loans, along with ones from Jumbo, FHA, and the VA. Getting multiple quotes can save you thousands of dollars throughout the length of your loan.
The first step is to pre-qualify for a home loan. It’s what determines the builder’s time frame, the neighborhoods you can afford, along with any upgrades. Remember, new construction loans are based on what’s inside and not on the home’s square footage.
3. Ask Plenty of Questions
You ask your lender and real estate agent questions, so don’t forget about your builder. In a sense, you are buying a new home sight unseen, you want to know exactly what you are getting for your money.
Ask your builder about other completed projects, and if you can visit the home while it’s under construction. Don’t forget to get a contact number for the builder and find out what happens if there’s a scheduling delay.
4. Consider Your Timeline
New builds take a while to complete, usually several months or longer. The timeframe may not work for you. Buying a new construction home requires planning, it’s not something you can have move-in ready in a few weeks.
If you are in a hurry to move out of your old place, you have another option. If you are determined to live in a newly built house, you may be able to purchase the model home. Once enough properties have been sold in the development, builders put the model on the market. You won’t be able to make any changes before signing the papers, but you will get a newly constructed home, often below the market price.
5. Schedule a Home Inspection
You are the home’s first owner, but it doesn’t mean you should forego an inspection. Some homeowner’s insurance policies require one before providing coverage. Scheduling a home inspection ensures everything is up to code. It also mitigates any unpleasant surprises you may find after closing the deal.
Summary
The suburban Columbus area offers several new neighborhoods under construction, each one offering something unique. When you are ready to look at new builds, we are here to help you on your home buying journey.