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Top Tips for Buying New Construction Homes

by Peter and Dawn James

July 27, 2016

Purchasing a new construction home is exciting. Everything is brand new and there are no worries about how the previous home owners maintained the home. With current resale inventory down, many home buyers are choosing new construction to find the home of their dreams. Here at The James Group at On Q Financial, we want to help you understand the process. Here are some things to know and consider as you navigate the various new construction options.

Most builders provide a "Model" home so you can see the quality of materials, layout, appliances, and overall quality of the homes they build. This is a great way to see the finished product. When visiting a model home, be sure to ask which features are standard, including the appliances as many times the model home will have upgrades.

In most developments, lots will vary in size and desirability. Larger lots, those along green belts, in cul-de-sacs, and in low traffic areas will usually be more expensive than lots in the middle of the development. Be sure to ask which lots contain a "premium" and how much be will added to the standard home price. Developers have a plan for completing the site and release lots according to their development schedule. Lots that are available can usually be reserved with a deposit as part of the purchase and sale agreement.

The builder’s preferred lender often times will provide some sort of financing benefit, such as closing cost assistance.  Advantages of using the builders preferred lender include their ability to meet closing requirements and financing incentives due to their close relationship with the builder. Should you decide to use your own lender, you will likely be required to be pre-approved by the preferred lender whom the builder trusts for consistency in buyer qualification.

Should you have any questions, feel free to reach out to us.