Common questions when buying New Construction
If you've never bought a new home before, you may have a few questions, even though it's a home sale at its core, it doesn't look the same as the traditional resale you might have more experience with.
Is it easier to buy New Construction?
Yes, buying from a builder vs. an emotional seller and their unique timeline can make for an easier transaction. BUT there is a lot more involvement in you, as the buyer, when you go through the process of your build.
Does a new construction home keep its value?
It largely depends on the market, future development, price, etc. I can tell you that today, May 12th, 2021, in La Plata, MD… Values are increasing. I have NO CLUE what will happen tomorrow or in a different town today. I’m an eternal optimist and I want to think that values will continue to rise… the realist in me knows there will always be an ebb and flow.
What does the process look like when buying a new home build?
The process of buying a New Construction:
Get pre-approved for a loan
Find a QUALITY builder
Get to know what’s standard and what options are custom
Select your customizations and add it to the sales contract
Conduct a home inspection
Get familiar with your builders home warranty
Do the pre-settlement walk-through (sometimes there will be several walkthroughs)
Sign on the dotted line
Some things that MAY BE negotiable when purchasing New Construction… the sales price, deviations of floor plans, cost of upgrades, finishes, etc… There are more ways than one to save money when buying a home. Instead of working on a lower sale price, negotiating closing costs, maybe put in an offer on the model home and even shop around for the right lender. You don’t need to work with the seller’s preferred lender but sometimes the builder will give you an incentive to do just that!! Who doesn’t love a free finished basement or get a break on their closing costs??
Speaking of Closing Costs… Who pays these?
It really depends on the market… and the property. A buyer’s Closing Costs are a lot of numbers rolled into one. They are your mortgage originations fees, owners and lenders title insurance, lenders escrows, settlement fees, transfer taxes and recordation fees, homeowner’s insurance, just to name a few!!! Typically the total will amount to about 3-4.5% of the home sales price.
Buying a New Construction home is exciting! Better than the new car smell is the brand new HOME smell!! You know that everything is customized just for you and that you will be the first person to call the house a home.