WHAT YOU NEED TO KNOW ABOUT NEW HOME CONSTRUCTION
Is a new construction home the right path for you? Below are some things to keep in mind when purchasing a new home. Generally speaking, a new home is more expensive than an existing home. The reason why? You will have to pay for the cost not only to acquire the lot, and build the home but you will have to pay an amount that covers the builder’s overhead related to that home, and a profit to the builder. However, if you are building an existing home you will only have be paying for what the market will bear, and there may be negotiation power.
- New homes may not be listed in your local MLS.
A new home builder may not be a member of the local MLS and as a result the homes may not show up in your agent’s MLS search. If you are interested in newly built homes, work with your agent to make sure you have reviewed all possible options.
- New Homes are usually sold before they are built.
Often times a builder will arrange finances while mapping out the construction process. This means that a builder may try to sell many of their homes prior to beginning building. This is accomplished by building model homes to allow potential buyers to review floor plans, fixtures and finishes.
- Buy First, Get a Discount
As a buyer you could have room to negotiate price down early in the sales process. Early in the sales process builders like to get homes under contract quickly so they can announce their housing project’s desirability to future buyers or report success back to their lenders. To do this, builders need early buyers to sign contracts; this is where negotiation can take place.