Brand new carpet, fresh paint, shiny appliances – what’s not to love about buying new construction?
While that new home feel is intoxicating, buying new construction can be tricky without some initial know-how. So you can experience all the pros and none of the pitfalls, here are some mistakes to avoid when purchasing a new construction home.
Failing to research the area ahead of time. It’s easy to fall in love with a neighborhood and floor plan before doing your due diligence about the surrounding community.
- Ask around to assess what’s happening (or not happening!) in the area that may impact your home’s value down the road.
- Research the school district, even if you do not have kids or ever plan to have kids, the school district ratings affect the real estate values in the area.
- Drive through the neighborhood at several different timeframes of day to get a feel for what it’s like. If you’re looking for a quiet subdivision and drive through during mid morning it may feel quiet. If you drive through again during the evening there may be more chaos and traffic through the neighborhood. This is helpful to know when making a decision.
Not thoroughly vetting your builder/developer. A builder can make or break your experience buying new construction, so make sure you do your research. And don’t just take their word for it.
- Ask for referrals. Talking to other clients that have experienced the building process and even more importantly have lived in a home that was built by the builder can be extremely helpful. A reputable builder should have former clients that they can put you in touch with.
- Read online reviews. Be careful to put too much weight of these. Most people tend to be more willing to share negative experiences vs. positive experiences. Still I highly recommend reading what you find and keeping it in the back of your mind. If there are a lot of negative reviews, this is definitely a red flag.
- Consult your Realtor. Realtors work with builders and sell spec homes all of the time. Your Realtor is a great resource for you in this process. In fact, I highly recommend that you involve them in the whole process. They will absolutely be your advocate and help you avoid common mistakes.
Waiving the home inspection. Heads up! Newer homes can have just as many problems as older homes, so don’t waive the home inspection. It can alert you to things your builder overlooked or didn’t properly complete.
Not asking about what type of warranty the builder will give you with the home. Don’t just assume the home comes with a warranty. Find out what is covered and for how long.
Considering building a new home? I offer a free new construction guide to help you in the process.