Buying a New Build Home
Buying a home is one of the biggest financial decisions you’ll ever make, and it can be intimidating. You must educate yourself during the process to preserve your investment.
Newly built houses are popular but buying a home that has never been lived in is a very different experience than buying a home that has been lived in. In this article, we’re going to present a guide for your new build home purchase. We’re also going to highlight some of the benefits and drawbacks of buying a new build home.
How To Buy a New Build Home
When you’re buying a new build home, you’ll be purchasing directly from a builder who constructed the property only for the goal of profiting from it. The builders want to sell the new build houses as soon as possible so they can start on their next project. This is why you should assess all the details so you’ll make a good investment, without being pushed.
Make a Research About the Builder
When you decide to buy a new build home, first make research about the builder. What was the quality of their last project? Did the company face any lawsuits? A thorough search about the builder is one of the most crucial parts of buying a new build home. You can also find reviews on internet forums. Checking the social media pages also helps.
Consider the Timing
Aside from the cost, timing is an important consideration when you opt for a new build home. The timing can be unpredictable due to many reasons such as weather, vendor delays, or permit issuances. Most builders claim that the property will be ready in seven months, but note that it might go up to 12 or 13 months if any delays happen. So, make your adjustments accordingly.
Inquire About the Amenities and Extras
When speaking to the builder, don’t forget to ask about the amenities. Also, ask if there will be any upgrades or extras. While amenities are the features that the whole unit in the building benefits from, upgrades refer to the features that you pay for so the builder adds them to your unit. Do you want a certain type of tiles? Are you happy with the current kitchen or would you prefer a different cook? Compare the pricing offered for the upgrades and see if they’re worth it.
Choose Your Lot Carefully
The lot you choose for your house can have an impact on your quality of life as well as the market value of your house in the future. Note that lots with a view and privacy are the most desirable and you’ll most likely need to pay more for these lots. Also, check if the lot you’re planning to buy gets enough sunlight.
When you buy your home, ensure that it is compatible with your long-term goals. Is it big enough for your prospective partner to move in with you? Would you be able to comfortably accommodate a new baby? Also, consider the resale value even if you’re not planning to sell it soon. In terms of value, spaciousness, and rental value, compare the new build property you’re considering to similar “old” properties in the neighborhood. Examine the price per square foot and compare it to the resale market to get a sense of the premium you’ll be paying.
Buying a New Build Home: Benefits and Drawbacks
Before you buy a new build house, you must be aware of all pros and cons. Consider what is most important to you so there will be no disappointments or misunderstandings.
Advantages of New Build Houses
With new tiling, painting, kitchens, and bathrooms, a new home is a blank canvas. This implies that you should do very little, if anything, to it. You can unpack your items and begin enjoying your new home right away.
All of the latest technology is included in new build homes. Many include smart home’ technologies and open floor plans. Some feature common amenities like a gym or a concierge.
Low maintenance expenses are a big financial benefit of newly build homes. A new-build home with new plumbing, appliances, and heating will keep you worry-free for several years.
Many new construction homes are certified by a third-party home energy rater, which ensures that the house meets specified energy standards. This means the walls and ceilings will be insulated, reducing heat loss in the winter and keeping your home cool in the summer. Many new homes also come with high-efficiency central air conditioning, which cuts down on utility costs even further.
New Home Warranty
A new-build home – and everything in it – often comes with a guarantee. This means you can buy with confidence, knowing that any faults that arise within the warranty period, such as a leaking roof or a broken water heater, will be covered by the builder.
Disadvantages New Build Houses
To maximize the profit, some developers cram as many properties as possible onto a single parcel of land. As a result, a new-build home may have fewer rooms than a second-hand property.
Fall in Value
Many of the advantages of owning a new home will disappear the day you move in. So, if you’re planning to sell the house, note that even if the property is one year old, its value will fall when compared to new developments in your neighborhood.
New construction projects don’t always go as planned, and it’s not uncommon for a new build property’s move-in date to be pushed back. This will add to your stress and costs.
The Bottom Line
After going over the tips, advantages, and drawbacks we’ve listed above, you should have an idea whether a new build home is a good option for you. To get the best results, take your time and talk with a real estate professional, especially if you’re a first-time homebuyer. A real estate professional’s knowledge and experience will guide you through the process and clear up any ambiguity.
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