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    The Best First Home Buyers Guide To New Construction

Buying a newly constructed home is an entirely different experience from purchasing an existing home. Since there is no previous owner, home buyers will not deal with issues that are typically associated with a used home. There will be no need to inherit torn wallpapers, worn carpeting, or deal with kids’ scrawlings on nooks and crannies. Instead, everything is shiny and pristine, and nothing beats the feeling of being the first to occupy a newly built home.
 
The Best First Home Buyers Guide To New Construction
 
If you are considering buying a newly constructed home, here are some tips that first-time buyers need to know.


    1. Check out the builder’s reputation.

Choosing the home builder is a crucial step in the process of buying a new construction home. Not all builders are equal. Thus, you need to shop around and choose a good builder who can create your dream home and avoid bad builders that can lead you to make a costly mistake.

The first step you need to do is to make a list of potential builders. After creating the list, it is good practice to check the reviews of each builder. If one of the buyers had a bad experience with a builder, they will most likely have posted a review about it online or spread the word about it in the community. In addition, consider talking to homeowners whose homes were built by a potential builder on your list. They can talk about the purchasing process as well as give valuable insight into what they loved about the house and what aspects they want to change.


    2. Hire an agent to represent you.

Buying a newly constructed home can be an intimidating process, because you have to deal with the builder’s own sales agent. These sales agents represent the builder and may use high-pressure tactics to close the sale. You need your own agent who will look after your best interest or else, you will be exposed to a huge risk with what is usually your biggest investment.

As your representative, the agent will advise you about the pros and cons of the transaction, which is usually not the case with the builder’s agent. They will inform you of some things that you may have missed in the builder’s contract and explain the legal verbiage in simple terms. They may also advise you when it comes to financing the deal.


    3. Determine what is standard and what is extra.

When you walk into a builder’s showroom, you will see a lot of amenities and features that may not be available in a basic home. Thus, it is important to get a feature sheet on the homes that you are interested in and determine which features come with the basic home price and which need extra payment.

You should note that markups can be huge when it comes to extras, so you have to make decisions early in the process. Check if you can save more money by hiring a contractor to build the upgrade for you after you move in instead of buying the upgrade. Finally, always negotiate with the builder to see if you can get a better deal.


    4. Get a home inspection and a builder’s warranty.

Don’t assume that a new home will not have construction defects. You need to have your home inspected by a professional to ensure that your home will be free from these defects. If possible, have your home checked at different phases of the building process to spot these defects immediately.

In addition, you should also get a builder’s warranty that covers at least one year after moving in. This warranty is preferably backed by insurance. It should state explicitly what is covered and what the limitations for damages are.

Purchasing a newly constructed home requires more involvement from the buyer than a resale transaction. Keep these tips in mind to ensure a smooth deal and maximize your enjoyment with your new home.

 
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About the Author:

Aki Merced is the Content Manager at HandleAki Merced is the Content Manager at Handle, where they build software that helps contractors, subcontractors, and materials suppliers secure their lien rights and get paid faster by automating the collection process of unpaid construction invoices.

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