If you are considering a home purchase and would like new construction, speak to a real estate who is an expert in the field of new construction with much experience selling new construction, because you will have many questions and will need sound advice.
There are new construction mortgage loans that you will want to consider, do not apply for the first one you hear about, shop your options. Your real estate agent should know area lenders to help you get started. Do not be led to use a lender that the builder asks you to use, that cannot be required, nor is it the best choice for the buyer; you have a choice and should check out your options.
Check in to the builder’s background, ask your real estate agent, check the BBB, google the builder’s name and company, and require that you view a completed home they have built, and ask for 3 references of recent/previous home buyers. Talk to the home owners, ask how they like their home, what issues they may have experienced and did the builder complete a final punch list in a timely manner at closing? Ask if they would buy another home from this builder? A former buyer is always a great resource.
Be prepared to pay up to 10% more for new construction, than you would a comparable home that is resale.
Consider buying a base price house with standard features included in the list price, and adding upgrades later. Make note that upgrades are usually marked up as much as 20% or more for profit to the builder. Perhaps you could have this same upgrade installed after closing, by a professional who is engaged in this line of work where you hire direct, with no builder as the middleman. It’s worth checking in to.
You can negotiate with a new construction list price. Builders may not want to, they’ll tell you this is their pricing, this is their cost, but you most certain can and should negotiate the price and terms when buying new construction, as you would any house for sale, taking in to consideration the current market atmosphere and conditions.
We have represented over 20 builders in New Hampshire, and sold hundreds of new construction homes and condos. –Sandi and Pete Duval