When Buying New Construction – A Few Critical Questions to Ask
When buying new construction, you’ve got a ton of options, but typically this comes at a steep price. Per the National Association of Home Builders, prices for new construction are going to continue to be on the rise in the upcoming years. Don’t less this stray you away from buying new construction though because there are still ways to save when buying a new home. Think about when you’re going to buy a new car, you must have a strategy to get the best deal. Well, home buying is the same method so put on your thinking cap and start putting together a strategy today. I’m going to tell you some of the best questions to ask to find the perfect home at the right price for you.
“Do you offer financial incentives if I use your preferred lender and title company?”
Some builders will knock off up to $100,000 in closing costs, others will negotiate prices on finishes. Some will allow you to pick out your finishes such as carpet, flooring, counters, or cabinets if you use their preferred lender and title company. However, you should always shop around and get quotes from other lenders. After all, you do want to get the best loan at the best price!
“What are your standard finishes?”
If you’re viewing a model home, then typically you’re going to be viewing the high-end version of a standard build. Most of the time these model homes will have all the bells and whistles. You need to think about what is important to you. Do you need those heated floors or are they a want? Getting rid of the upgrades are a huge way to cut costs, so be sure to make a list of your needs and list of your wants. Those wants may not be worth the extra money in the long haul.
“Is there and HOA and if so what are the rules and regulations?”
Each HOA has its own Declaration of Covenants, Conditions, and Restrictions. Get these from the builder and read them carefully because you will want to be aware if there are any restrictions and regulations. If there is an HOA you need to pay attention to when you will be required to start paying the dues. In most cases, builders will cover the costs until at least 50% of the homes in the development are sold.
“Can I talk to some of your past clients?”
Always check the builder’s references, but keep in mind builders are probably only going to provide you with their glowing references. You should shop around to find your own, knock on some doors of homes that have already been built. Questions to consider asking: How responsive was the developer when you had concerns”, “Were there any issues you ran into”, and “Would you use this builder again, why or why not?”