Buying a new home directly from a builder can be an exciting experience, but it's important to approach the process with eyes wide open. While there are many reputable builders out there, it's still crucial to do your due diligence to ensure you're getting a high-quality home at a fair price. Here are five key things to look out for when buying from a builder:
1. Get a thorough home inspection.
Just because a home is newly constructed doesn't mean it's flawless. Hire an independent inspector experienced with new builds to closely examine the property at multiple stages - foundation, framing, electrical, plumbing, etc. Don't just rely on the builder's final walkthrough. Catching issues early can save major headaches later.
2. Understand what's included and what's an upgrade.
Builders often have design centers where you select finishes, appliances, etc. Be clear on what features are standard vs. costly upgrades. It's easy to get carried away and blow your budget. Prioritize what's most important to you.
3 Review the warranty details.
New builds typically come with a warranty from the builder. Understand exactly what's covered, for how long, and the process for making claims. Consider a third-party warranty for enhanced protection.
4. Check the builder's reputation and track record.
Research the builder extensively - look at their online reviews, news articles, and ask for references from prior buyers. See if they have many unresolved complaints with the Better Business Bureau. Make sure they are properly licensed and insured. You want a builder with a solid reputation for quality and standing behind their work.
5. Have a real estate attorney review the contract.
Builder contracts are notoriously complex and often favor the builder's interests. Have an experienced real estate attorney look over the agreement before signing anything. They can help negotiate more favorable terms and ensure you understand the implications of things like earnest money, construction delays, and dispute resolution.
While a new build can be a great option for many, buying from a builder requires an extra level of vigilance. By keeping these key factors in mind, you'll be better equipped to navigate the process smoothly and end with the home of your dreams. Remember, don't get blinded by that new house smell - be sure to kick the tires!
From other industry sources, Pros and Cons of Buying a New Construction Home, from Realtor.com
