If you have ever thought about buying a newly-constructed home, you probably like the idea of having modern features, open floor plans, and customization options. These are all common benefits of new construction, but there are several other factors you should consider before purchasing a new home.
In this post, we will discuss seven important facts about new construction and how they might impact your home-buying decisions. First, let’s talk about three different methods by which you can buy new construction.
How to Buy New Construction
There are three primary methods for purchasing a new construction home. One way is to purchase an available lot, and then hire a builder to construct a home on your land. This is the most common method when designing and building a completely custom home.
The second way is to find a new, developing neighborhood and purchase both the lot and the home as a package deal from the builder. In this case, you may have some customization options, but you will likely have to choose from the floor plans that are available within that development.
Lastly, you could purchase a newly built home that is already completed or almost finished. These will usually be found in newly-developed neighborhoods where the builder is constructing the homes on a mass scale. This option will usually not allow for customization, but you will be able to move in more quickly.
7 Things to Know About New Construction
When you purchase a newly-built home, the builder will usually offer warranties on the construction. For example, you may have a one-year warranty on workmanship for all major and minor repairs. It is also common to have a longer-lasting warranty on major operating systems such as electrical, HVAC, and plumbing. Lastly, your builder may offer an extensive warranty on the structural integrity of the home. Warranties can help prevent expensive repair and maintenance costs, which can be a great benefit for first-time homeowners.
2. Limited Negotiations
On the other hand, when entering into a contract on new construction, there is less room for negotiation compared to resale transactions. Price is often non-negotiable since the builder must account for the cost of their supplies, labor, and agent commissions, while still fulfilling their profit margin. Additionally, builders may require a large earnest money deposit, which may or may not be refundable, depending on the circumstances. It is important for a buyer’s agent to represent you in the transaction and ensure you understand everything in the agreement.
3. Possible Delays
Another risk involved with new construction is the possibility of materials being delayed or unavailable. Because of these supply issues, the completion date of your new build may get pushed back several times. These delays are all too common, especially when buyer demand is high. Since the length of the homebuilding process is inconsistent, it may not be the best option for families who have a strict timeline for moving.
On the plus side, building a new home may give you the opportunity to customize the layout and features according to your own taste. Whether you design your own floor plan or choose one provided by your builder, you will enjoy having a home that fits your unique style and preferences.
Occasionally, builders will offer incentives to home buyers for using their preferred lender or closing attorney. They may do this to ensure that the process goes smoothly and communication is streamlined between all parties. Incentives can come in the form of closing costs, lower interest rates, free upgrades, or other deals.
6. Latest Technology
In addition, new homes have all the latest technology, including energy-efficient systems and appliances, healthy building materials, and smart features. These benefits contribute to lower costs of living, better quality, and convenience. For example, a high-efficiency HVAC system paired with a programmable thermostat can help you save big on energy costs and improve your indoor comfort.
Finally, new developments commonly have a homeowner’s association, or HOA. These come with rules and fees in order to regulate and maintain the neighborhood. If you purchase a home within one of these new developments, make sure you do your research about what the HOA entails. These perks may be beneficial to some homeowners, but not to others. Read more about HOAs on our website to find out what to expect.
If you think new construction is the right choice for you, your next step is to choose the best method for purchasing your home. First, talk to your local real estate agent about your options, and find out which builders are the most reputable in your area.
If you prefer a custom home, your agent can help you find and purchase an empty lot, interview various builders, and choose your design from start to finish. Otherwise, your search should be focused on finding local new developments that fit your criteria in terms of builder quality, location, floor plan, and amenities.
Our professional agents at Sheridan Solomon and Associates are knowledgeable about the builders and developments here in Middle Georgia. We are eager to help you navigate the process and make sure your new home purchase is seamless.
You can also access our latest listings and read about our team at www.sheridansolomon.com or call us at our Macon location at (478) 746-2000 or our Warner Robins location at (478) 333-2277.