5 tips to keep in mind while buying a new construction

by Garima Verma

Buying a new construction home offers a lot of perks. But there are plenty of things to pay close attention to every step of the way, and enlist the help of an expert when necessary.

1. NEGOTIATE WITH THE BUILDER

The top myth buyers of new-construction homes tend to believe is that builders won’t negotiate with them. Hiring a real estate agent who specializes in new construction can give you extra confidence and be able to negitiate in additional upgrades and perks.

2. PICK THE RIGHT LENDER

Many well established builders have in-house mortgage lenders or preferred companies they work with. These may or may not offer competitive rates and terms. Unless you shop around for mortgage rates, you won’t have a basis for comparison. Also many lenders have special programs like builders extended rate lock etc which will incentivize new construction buyers.

3. BUDGET FOR ITEMS NOT INCLUDED BY THE BUILDER

New builds are blank slates. For instance, many new homes don’t come with landscaped yards, some have unfinished basements so it's important to get all the details in writing to really budget and avoid last minute surprises.

4. LOOK INTO BUYER WARRANTIES AND TIMELINES

When you buy a new-construction home, there are two types of builder warranties you’ll hear about: implied and express. Implied warranties cover potential defects in workmanship that impact a new home’s habitability, livability and safety, based on local building codes and standards. Implied warranties tend to be vaguely worded, and they usually have a 10-year liability cutoff period for builders.

5. CHOOSE YOUR UPGRADES WISELY

Don’t get caught up in customization. Options and add-ons can seem limitless when you walk into a builder’s showroom. But before you go on an upgrade spree, it’s wise to consider which ones will boost the home’s value but at the same time invest in upgrades that will make your home most custom and one of a kind.