What are some things to keep in mind when buying new construction homes?
- There is no such thing as a “best builder”. Many of the large home builders bid out their work to subcontractors. These home builders do not have their own team of highly trained workers out there building your home.
- ALWAYS work with a Realtor®! In new construction situations this is crucial because the guy on the other side of the table has no interest in you. They work for the builder, they do not care if you get a good deal, if everything is built well, or if there are parts of the contract that hurt you. I will assist you in showing you parts of the contract you need to think about and will fight to get you the best home possible.
- Many times if something happens during construction that makes you want to walk away from the home, you can lose all of your downpayment and upgrade money. Before signing the contract have the sales person show you exactly where in the contract it talks about the deposits. If you still do not feel comfortable find someone higher up the chain to get you a signed written statement regarding this.
- Ask questions about removal of contingencies and your cancellation rights. Make sure you understand your liability and commitments.
- Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.
- Find out whether your lender will lend on all the options / upgrades you have chosen. If your lender will not finance 100% of your selections, you will be required to pay for it in cash