If you want to buy a new construction home, there are five important things that you need to know.
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Buying a new construction property is very different from buying a resale property. There are five things that every homebuyer needs to know about new construction:
1. New homes may not be listed in the local MLS. This is important because you may not know all the new construction inventory available. You should connect with your local real estate agent who can give you insight as to what new construction homes are available and what new communities are coming into the area.
2. New construction homes are often sold before they are built. New construction communities may have floor plans available, but you won’t even see that inventory when you are ready to buy in a new area. If you are looking at a more established community, that’s why there are only a few homes available for sale, if any; the homes were sold before they were even built.
3. The first buyers may get the best discounts. New construction builders have relationships with lenders, and there are incentives available for you, especially if you buy while a new construction community is still in the first phase. They may offer credits, discounts for rates, or even some kind of credit towards your closing costs if you work with their preferred lender.
4. Builders don’t have a personal attachment to the home. Sometimes, it’s just business. The numbers have to make sense for the builder. If you are buying in a newer community that hasn’t sold a lot of homes yet and there is still a lot of construction going on, the builders may work with you more on pricing. As time goes on, those prices will go up through the different phases. There will be fewer discounts available as demand grows and inventory shrinks.
5. Discounts may be available in the form of upgrades. When you work with a real estate professional, we know how to negotiate the best deal for you. The same is true when you buy a new construction home. For example, say a house is listed at $400,000 and the builder doesn’t want to go down on price. The builder may give you a design center credit so that you can pay for upgrades. For example, they may give you a $30,000 credit that you can use to upgrade your countertops, flooring, or lighting.
If you have any other questions about buying a new construction home, please feel free to reach out to my team. We would be happy to answer any questions that you may have, and we look forward to talking to you soon!