There are a few ways you can go about buying a new construction home. You can purchase land and build from scratch, choose a local builder to work with to help you, or work with a real estate agent to find a neighborhood that will be upcoming then work with them through the process. We have worked with numerous clients over the years to help them through the new build process and there are definitely pros and cons just like any home purchase. One of the main benefits is that you have flexibility to choose what the look and feel of the home is. This depends on what route you take but most likely in every new home build you’ll have a say in something that’s being done! Two big cons are time & permits. It could take months if not years for the construction to be done before you even get to the design stage. If you are doing it on your own permitting can also take up a lot of time and effort. We’ll go through our experience we’ve had when working through local builders with clients here in this post.
What is a new construction build?
New construction homes are often just the framework of a home prior to someone coming into purchase. They normally are in specific areas throughout the city and you’ll notice them from the road with the land cleared and a big sign out front saying “Coming soon by xxx builder”. The builder’s typically have specific floor plans that they follow with a set square footage and lot size. However, the buyer gets to control things like the design elements such as flooring, paint colors, countertops etc. The buyer may also have a say depending on how far along in the process the builder is, if they want a specific number of beds/baths, if they want laundry on the first floor or second, and a variety of upgrades they want to do.
The contract/What’s included
This is one of the crucial parts where it’s beneficial to have an agent at your side. The builder normally is already working with a team of agents that represent them and put together contracts based off the obligations their wanting. These agents can also represent the buyer but the downside is that they are first there for the builder. So if something comes up where you’re wanting to negotiate, they do not have the power to be on your side.
In the contract the builder will list out the components and features that are included in your home’s purchase price, but it won’t list the things that are excluded. So for example we worked with a client where the builder required a fence to be put in after move in but needed to be paid for by the buyer. This is an additional cost on top of the purchase price already. It’s extremely important to read over the contract before signing on the dotted line to make sure you calculate all of the additional expenses and upgrades to ensure that you’ll be able to afford the purchase.
Local builders
Another reason to hire an agent to represent you is that they know of the reputable builders. If it’s a national company it most likely will be challenging to get your answers quickly. Local builders have offices that you’re able to go into and sit directly with the design team and go over the contracts in person. Also just because they’re local doesn’t mean they’re reputable. Most real estate agents establish relationships with builders and know all the ins and outs of the contracts. This is extremely valuable because it provides the buyer with confidence that there won’t be any unexpected costs in the end. We have established connections with some of the best local builders and they know when we have a buyer looking for new construction and will let us know what’s coming up in the market so we can be first to know and share those details with the client before the competition creeps in.
The offer
When you’ve decided that you want to purchase a new construction home the offer process will vary depending on the builder. Some of them require that you only use their forms while others accept ones from real estate agents. Some builders also allow offers to compete against each other while some accept first come first serve. It’s important to note that there is very limited negotiating below list price when looking to purchase a new build. They set the prices based off building costs and don’t expect to take anything less. Competition is very high so they know that someone else will come in and pay this price if you aren’t willing to.
Final word
Just like a normal home purchase there are pros and cons to purchasing a new construction home so make sure you weigh the options before making a decision. Talking with a local real estate is always a great idea so they can help explain the process and help you get familiar of all the ins and outs.
Mel & Zack Durham | EXP Realty | PNW Homes Group
360.481.2073 | melandzack@pnwhomesgroup.com
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