3 Important Things To Understand About Buying A New Construction Home

Buying a new construction home is a little different than purchasing a home that is being resold by someone who has lived in the home for years. The entire buying process, when purchasing a new construction home, is a little different.

Thing #1: Be Prepared to Pay Asking Price

When you purchase a resale home, which is essentially a home that someone has lived in for any period of time it is common to get a price reduction or to get the seller to pay for repairs or cover the closing costs. Don't expect this to happen when you are purchasing a new construction home.

When you are purchasing a new construction home, you are generally buying the home from a builder or developer. They are trying to both recoup the cost of building the home, and make a profit on the home, and have a very specific target price they want for the home. Additionally, there shouldn't be any repairs for the seller to take care of, as the house is brand new.

When you find a new construction home you like, you need to be prepared to pay asking price or above asking price for the home.

Thing #2: Ask for Upgrades

You may not be able to get the buyer to lower the price, but you may be able to get them to throw in a few upgrades, especially if they are still finalizing the details of the home.

For example, you may be able to ask for upgraded flooring if that has not been put down yet. Or you may be able to ask for upgrades to the landscaping. You may be able to get a few extras without increasing the price of the home.

Thing #3: Always Use Your Own Agent

When buying a new construction home in a development, there are going to be sales representatives from either the developer or the construction company that is going to be representing the seller.

These representatives may seem helpful, but you should not confuse them as someone who is looking out for your best interests. Their job is to serve their client, be that the developer, builder, or corporation that they are working for.

You need to use your own broker or agent. Your agent will represent your interests as you work through the sale and will alert you to anything you need to be aware of with the sale. Your agent will be able to give you help and advice without a conflict of interest.

If you want to purchase a new construction home, you need to be prepared to pay the asking price. Although you may be able to ask for a few upgrades to the home, don't expect to get a financial discount on the home.

When investing in new home construction, use your own agent, and go through all the required buying steps, like getting a home inspection, to ensure that you are getting the high-quality product that you think you are investing in.