Tip #1: Select an Experienced Real Estate Agent
When purchasing a new home, be sure to select a real estate agent who has experience with new home purchases. With the help of an experienced real estate agent, you will be able to avoid some of the common traps that are associated with purchasing a new construction home. If your purchase package requires you to use a particular lender, for example, your real estate agent will help you obtain a fair interest rate and closing costs. Furthermore, because your real estate agent is aware of industry standards, he or she will make certain these standards are followed so you are treated fairly.
Tip #2: Work Out the Details Before You Sign
Before you sign anything, make certain every detail of the sale has been properly sorted out. It is easy to get caught up in the excitement of purchasing a home or to be talked into signing right away so you don’t “lose out” on the home. Still, keep in mind that everything must be in writing. Don’t assume something will be done just because it was verbally agreed upon. Until the written contract is complete and correct, don’t sign anything.
Tip #3: Complete a Home Inspection
Just because a home is new, it does not guarantee it is free of problems. Even if the home comes with a one year warranty, you should get an inspection to make certain the home is up to par. Remember, your home was built by humans and humans make mistakes. As such, the more eyes that are looking at it, the less likely you are to run across unexpected problems.
Tip #4: Do Your Research
When purchasing a new construction home, you are also buying into that particular builder. As such, you should take some time to research the builder before you make a purchase. Not only do want to work with a builder that is financially sound and does quality work, but you also want to work with a builder who has taken steps to ensure the neighborhood does not instantly lose value. For example, a builder who limits the number of investor purchases and who has plans to build homes of equal or greater value in the surrounding area are taking the steps necessary to maintain the value of your home.
Tip #5: Choose Your Own Appraiser
Your lender will require you to have the home appraised before issuing a loan, so it is a good idea for you to take control of the process and select your own appraiser. This way, you can be certain the appraiser is an indifferent third party who will provide you with an honest and non-biased appraisal. Once the appraisal is complete, be sure to get a copy of the report and read it so you have a clear understanding of the market area.