Investing in a new construction home is far different compared to getting an existing home from established neighborhoods. For starters, there aren’t any previous homeowners, so you won’t need to worry about any emotional connection to the property. Furthermore, there are more factors to consider before you begin picking out floors and wall paint.
If you are settled with purchasing a new construction home after weighing its pros and cons, then you will need to know what you’re looking for and what features to focus on. This will help you make an informed decision on what home to invest in based on your wants and needs.
With that said, read on as I show you excellent tips buyers should know about when getting a new construction home.
Understand the building process
It’s crucial for homebuyers to completely understand the building process of new construction homes. There will be a ton of moving parts during this process, with some of the steps including:
- Site preparation
- Foundation pouring
- Framing steps
- Electrical installation
- Municipality inspections
- And even more steps!
The time frames of steps are different, which us why you need to know the entire process before considering what to buy. While the process is systematic, builders would be different, depending on their business size and experience.
Learn everything from start to finish by scheduling meetings with local builders, how they work with people, and take notes! You can even attend new construction seminars, trade shows, even touring model homes to get an idea on what the process will entail.
Doing this will lessen any confusion about your purchase and the next steps involved.
Personalize the house to suit your tastes
This is probably a fun step for many who are purchasing a new construction home, but this would also be a very stressful one. The decisions you’ll make will create a huge impact on what your home will look like and how it functions. Furthermore, it affects the final purchase price and its future price when selling it.
It’s why you need to make decisions that go hand in hand with your wants, needs, and overall budget.
There are a lot of things you will need to consider when personalizing your home, from what is in its walls down to the aesthetic features. These would include the following:
- Exterior details
- Bump-out additions
- Window placement and any extra windows
- Structural additions such as fireplaces or decks
- Electrical placements, such as outlets and lights
- Kitchen design, including appliances, cabinets, countertops, etc.
- Floor-type and materials
- Ceiling height
- The building materials
- Smart home features
- Any interior and/or exterior upgrades
Home decorating is not even on this list yet! You will need to conduct this tip with the builder designers, which would be split into meetings since you can’t make all the decisions in one go. Be careful when making decisions about your house design, since you won’t know what everything will look like exactly until the build is complete.
So take your time and weigh the options, because you can’t go back after making the final choice.
Know the difference between production homes vs. custom homes
This is a pretty big lesson to learn here! A lot may not understand the differences between both, which will have consequences.
You might purchase a production home with the impression you can pick out everything and change details, which isn’t probable. With custom homes, you can choose whatever you want!
These aren’t the only differences, though. Here are the other major differences between both types of homes:
- Production homes are built on land or lots that are owned by the builder, using stock plans with limited choices on most aspects of the house
- Custom houses are fully customizable and either built on land owned by the builder or homeowner. An architect would usually be involved with the construction process.
- Production homes would have shorter timelines, between 4-6 months.
- Custom homes would have a longer timeframe, ranging between 6-16 months, even more. This depends on the home design, the square footage, and more details.
- As for the pricing, the cost difference varies significantly. In general, production homes have negotiated and finalized costs after the contract is signed, so there will be less variability throughout the process. Custom homes may be more expensive with varying costs throughout the construction process, depending on what you want to add or remove to the design.
By learning more about these two types of homes, you can narrow down your choices and know which one is best suited for you.
Negotiate the best price, terms, & features
When you already determined where and who builds the house, the next tip is to know how to negotiate the build’s details. When investing in a new construction home, you’ll need to determine the budget and how much to pay, which is more complicated compared to getting an existing home.
This isn’t as simple as determining an offer price and closing date, along with including inspections and personal property included after the sale. When you negotiate the price and overall purchase, you need to be creative.
During this negotiation process, you will decide the specifications you want in the house, the wanted upgrades, square footage, among other design factors. It will be difficult negotiating the price with builders, but what you can do is to negotiate with upgrades instead.
There may be room for negotiations with certain upgrades, such as adding a different material to kitchen countertops. Also, remember to take into consideration the appliance, window covering, and landscaping budgets as you conduct negotiations.
Get reputable recommendations and referrals for builders
No builders are alike. As a homebuyer, it is your responsibility to do due diligence, making sure that you research and choose reputable builders.
You can do this by asking for recommendations from trusted ones or people you know from the industry. You can also search online for local builders in your area, reading genuine reviews and testimonials from their previous clients. Then, schedule a meeting with them to get a gist of what they are like to work with.
Other homebuyers would also tour new homes, talk to subcontractors, suppliers, and vendors, who may give referrals. Remember, this is a high-cost and long-term relationship, so you have to be confident in the partnership and be assured that you are getting the job done right.
The Bottom Line
Just like purchasing a previously-owned house, you need to look into various factors and features, checking everything before you make that investment. Through professionals like Onsite Building & Timber Sydney, they can help in checking if the house is worth it or not, and even help throughout the construction process. Once you’ve got those in check, you’ll be able to work through the next steps in constructing your new house!
Hopefully, this article has made you more knowledgeable on how to purchase a new construction home. Take these tips into consideration as you navigate your way through this new homebuying process to ensure you have an amazing home in the future. Good luck!
Do you have any questions or want to share your tips and experiences on purchasing a new construction home? Share them in the comments section below, all of your thoughts are much appreciated!