Monday, April 13, 2015

Buying New Construction Homes

Not everybody likes to buy a home that is pre-owned by a seller. For these buyers a new construction home is the better solution. However, when buying a new construction home you as the buyer have to keep some important details in your mind when going on house hunt.

The developing company is the seller of the house and they offer their product – the home – based on the construction costs. That means that the material quality and the work that was put into to the construction dictates the price. This said it is highly unlikely that the builder will lower the home price when you -the buyer - enter into the contract. They will often give you some upgrades to the house and/or will pay some closing costs and that can be a good deal too.

When buying a new construction home you as the buyer make your decision based on the model home that you have visited. These homes often have upgrades that your house might not have because your house is not yet built and you decide during the purchase and building process what kind of upgrades and quality you want in your new home. Please do not forget, every upgrade comes with a new price tag and your starting purchase price may not be the end price of your new home.  Also make sure that every detail about your home upgrades and changes to the purchase contract are in writing so that you are on on the save side in case anything goes not straight during the construction period.

Sometime the home builder offers also the financing options in-house or with an associated lender. When taking the builder’s financing option into consideration, please make sure that you also check other lenders for affordable financing options. The builder's financing is not always the best for the buyer.

The most attractive deals in new construction housing sector you will get at the year's end or when the development is nearly fully finished because the developing company wants to close its books on this construction project and want to start a new project in a different neighborhood.

You want to buy a new construction home and do not know where to start, because these new construction developments are not on the internet? Contact us at for assistance.