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Looking for New Construction? Check Out These Tips

June 3, 2023

Real Estate Tips

Looking for New Construction? Check Out These Tips

Thanks to the shortage of available inventory in most markets, you can expect to start seeing more and more new construction. Buying a new-construction home is different than buying an existing home, however, so be ready to attack the process with a different mindset and specific strategies. Here are five important tips to keep in mind from U.S. News and World Report:

1. Choose an agent who works with builders. Start by selecting a real estate agent who has expertise working with builders and new-construction properties. He or she will be able to steer you toward a reputable firm whose designs suit what you're looking for, in the location you desire.

2. Research the builder. Be sure to do your own research on the builder to determine the quality of their product and their overall credibility. Check online reviews, the state licensing board, local court records and even Google to find out if the builder has any pending lawsuits, complaints or disciplinary actions. Take it a step further and talk directly to past clients. A reputable builder will be happy to offer referrals.

3. Spend your money on size and location. When building from scratch, it's tempting to spend your money on upgrades such as high-end countertops and bathroom fixtures, but that can quickly put you over budget. Instead, focus on choosing the right location and getting the square footage you need. Upgrades can always be made down the line.

4. Learn how to read a floorplan. Floorplans are foreign territory for many of us, so talk to your builder and real estate agent about how to accurately interpret them. Many builders offer virtual reality technology that turns the floorplan into a realistic 3D experience. Better still, visit a home that was designed with your floorplan so that you can get a firsthand feel of what you're buying.

5. Get a warranty and an inspection. Most builders offer warranties, so be sure to ask if yours does and, if so, what exactly it covers. Certain companies, for example, offer a one-year warranty on workmanship, a two-year warranty on mechanical and electrical elements, five years on water leaks and 10 years on structure. Also, be sure to get an independent inspection before you move in. A home inspector will help identify any problems before the builder's warranty expires.

The above guidelines will help make your new-construction buying experience a happy and successful one.

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