Sell with full-service agents for as little as 1%.
For those that want to buy a new construction home, they need to realize the process for doing so is quite different compared to buying a resale home. At first, some are under the impression that the process for doing so may be easier. However, once they begin the process they find that this may not be the case.
At What Phase Is The Purchase Made
It is important to determine the pros and cons of this type of home purchase. By doing so it can help with the buying process. This type of purchase can take place at different phases of the new construction.
There are some that make their purchase before the home has even been built like those in new sub-divisions.
Others start the purchase when the construction is complete.
Then there is the option to buy the property and have a custom home built.
The Buying Process
Anyone that is going to deal with a builder no matter at what phase first needs to check out the reputation of that company. There are important things to know such as their track record for completion of the builds on time. What type of reputation they have gained for providing quality homes.
Research can be done in a variety of ways. This can be done by checking out subdivisions that they have completed to see the completed projects. An interested party could even talk with some of the residents here to see how satisfied they are with the finished homes. The internet can be checked for reviews.
Check Out The Neighborhood
Aside from the subdivision and the house itself, the neighbourhood, on the whole, should be of interest. Checking out the amenities that are close by should be done focusing on those that are going to be important to the new buyer. This should include determining what future plans may be in the works for the area.
Looking At The Models
It is not uncommon for the buyer of a new construction build to want to make the purchase long before the actual home is built. The builders provide model homes for potential buyers to view. This way they get a good idea of what is available to them. Quite often there may be several model homes to view that are comprised of different sizes and features. What the buyer is not seeing however is the actual lot in the subdivision where their purchased house will reside.
Choosing The Lot
Builders will usually have a form of blueprint with the layout of the lots. Those that have been sold will be marked as such. This is one resource for being able to choose a lot. Another way may be to drive around the complex to see where the lots have been staked out. Depending on when this is done the sub-division can look quite different. At the start of the building project, only the lots may be staked out. If the building process has started then some homes may already be under construction. If it is close to completion then a better visualization of the lots will be possible, but many of the lots may already be purchased by other buyers.
This is the next step in the buying of new construction home. Some believe that there are no options for this but most builders will promote upgrades and here there may be room to negotiate ones that can be included in the price, or perhaps ones that are not being offered. What usually is not negotiable with a new construction build is the price.
Read All Materials Carefully
Right from the beginning of this type of home buying process, the builder may provide the potential buyer with various types of materials. This will include marketing material as well as contracts if the interested party is wanting to make a purchase. It is very important that all of the material be carefully read. Even the marketing material may include some important information that could be missed but is important in regards to the purchase.
Use The Proper Resources
An Experienced Realtor
Most builders will have designed professionals to do their marketing and following through with the legalities of the sale. A lot of home buyers of a newly constructed make the mistake of not having their own representative. They just assume that this is not necessary. What has to be remembered is that the builder’s representative is working for the builder, not the buyer. The buyer should start the entire process under the direction of a qualified and experienced real estate agent. The benefits of this include:
A real estate agent working in the chosen area will usually be familiar with the different sub-divisions being constructed in the area. They will have some knowledge about the credibility and history of those builders. This is information that will prove valuable to those looking for a new construction build in the area.
These agents are well trained at being able to carry out negotiations. They have experience in this area where most buyers do not.
This professional acting on behalf of the buyer will be able to assist with scrutinizing the sale contract and aid in its completion. They will make sure that everything is in order and will view the contract from the buyer’s perspective.
Real Estate Lawyer
The assistance that the realtor can provide it means that all of the documents on the buyer’s behalf will be in order for when they are sent to the buyer’s lawyer who is another professional that is necessary for the successful completion of the new construction purchase.
While it is not required for a new home construction buyer to rely on a real estate agent the benefits of doing so make a huge difference in the buyer is totally satisfied with their final decision.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. REALTOR® contact information is provided to facilitate inquiries from consumers interested in Real Estate services. Please do not contact the website owner with unsolicited commercial offers. Not intended to solicit properties currently listed for sale.