There are five tips you must remember when buying a brand-new home.
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If you’re gearing up to buy a brand-new home, there are five steps you must take to ensure the process goes smoothly:
1. Talk to a Realtor. Many buyers believe if they go directly to the new home office, they’ll get a better deal, but that’s not the case. New home companies set aside a budget in their marketing expenses to pay us Realtors, so we’ll work on your behalf to get the best deal possible at no cost to you.
2. Make a plan. If you have complete flexibility in terms of when you move, for example, it might interest you to know that new-build communities offer some great incentives for year-end buyers. Just like a car dealership, they have a certain amount of inventory they need to sell before they move on to their next project.
Many buyers believe if they go directly to the new home office, they’ll get a better deal, but that’s not the case.
3. Decide whether you want a custom or semi-custom rebuild. If you choose a custom build, you’ll be able to pick every feature of the home and get the exact home you want, but you’d be looking at an eight-to-18 month turnaround time. If you choose a home that’s more move-in ready, certain features will already be picked for you, but you might get a better deal because, again, these new home builders need to sell a certain amount of homes before they can start building more.
4. Remember: The more popular the community, the less negotiating power you have. If the community is less popular, you might be able to get some extra design credits. Also, many new build companies use their own mortgage companies, so you might be able to get the best deal possible by working with that mortgage company—even if you work at a bank. I’ve had several clients use a new build loan when buying a home, only to refinance into their own loan several months later. Before doing so, they were able to take advantage of many incentives the builders were offering.
5. Make sure to do your inspections. On my team, we have a whole timeline set aside to make sure buyers see their new property in every different phase. This is essential because, while it's easy to assume there's nothing wrong with a newly built home, issues can (and do) arise. Our team has seen broken sewer lines in new builds on four different occasions. That’s why inspections are so important.
If you’d like to know more about buying a brand-new home or you have any other real estate questions for me, feel free to give me a call or send me an email. I’d love to help you.