So, let’s say that you are looking to purchase a new construction home. That doesn’t mean you should buy the first one you see without any investigation. A lot of the steps, similar to buying an old house, must be followed.
Following are a few tips that will help you buy a new construction house and make the process easy for you:
1. Don’t Try To Make It On Your Own
By this, we mean you need a real estate agent with you throughout the process. Look for an experienced agent. Covenant Realty Corp has several agents that can help in this regard (link to find a realtor page).
2. Look Into New Construction Loans
If you are looking to contract with a small builder, you will need to look for new construction loans which are a little different from conventional loans. They require more documents such as the purchase offer (the most important one), budget and building plan to determine how much loan should be given. Ask your real estate agent for a few referrals and have a chat with them about your needs Covenant Realty Corp has several lenders that can assist (link to preferred lenders page).
3. Research the Builder
Find out which builder constructed the house. This is where Covenant Realty Agents can be a big help. You need to go with a house that was built by a reputable contractor, because since it is brand new, there’s no guarantee for craftsmanship which can cost you in the long run. Your agent will be pointing you in the direction of builders who provide a 10-year structural warranty. Sometimes, existing homes on the market tend to be slightly more appealing because they have withstood the test of time. Once you have all the information about the builder, you will be good to go.
4. Home Inspection
Yes, a home inspection is also necessary for a newly constructed home. There might not be any problem with the appliances, but the inspector will be able to spot shoddy construction work. This will determine how sturdy the foundation and roof are.
All these points make a newly constructed home purchase valuable. There’s less room for error because everything is out in the open. Moreover, your new home will have all the latest designs and latest trends, so that if you do plan to sell it in the future, you will have a much better chance of making a profit on it.