Questions to Ask When Buying New Construction
Questions To Ask When Buying New Construction
Buying new construction is so exciting - you’ll be the first person to ever live in that home! Builders use a different contract than the contract use for re-sale homes. In fact, each builder uses a contract they’ve had their lawyers draft. To make sure you understand what’s included, what’s not, and everything else that you’ll be signing, we’re giving you the right questions to ask!
The first person you’ll meet when touring a new construction home are the builder’s sale representatives. These early meetings are your chance to ask all of the questions you might have regarding costs, labor, and other essentials that you need to know about before jumping in. You’ll want to make sure you write all your questions down, and don’t be shy about getting the answers you need. This is a major purchase, and you don’t want any surprises later.
We always recommend hiring a realtor when touring new construction homes (it’s at no cost to you and it’s best if you do this before touring!), we’ll help guide you through the 10 questions you must ask before buying new construction.
Is the lot cost included?
When you sit down with a builder, you’ll see that each floor plan comes with a base cost. This is the cost of the structure itself, as well as base interior and exterior features (we’ll get into those in a little bit). At this stage, it’s important to ask whether the lot cost is figured into the base. There may be cost premiums on certain lots depending on their location and additional features. If the lot cost is not included, ask what it is (and whether there are additional premium costs) and factor those into the base price for the house.
How long will building take?
Timing is everything when you’re trying to plan a move to a new construction home. Asking about build time will help give you a general idea of what to expect, but delays can happen during the building process. You’ll also want to ask whether that build time includes the time it takes to get permits which typically take about 30-45 days to obtain.
What warranties are provided with the house?
Even if a home is brand new, that doesn’t mean everything will be working perfectly! Fortunately, most new construction homes come with one or more warranties that protect you in the event of a mishap early on, including a short term whole-house warranty and a longer structural warranty. You’ll want to clarify what those warranties cover and how long they last. A good builder should provide some type of warranty to help cover you at least for the first several years, but you can always buy your own home warranty too.
What are the standard finishes?
Homes starting from base price can seem a little too good to be true after you tour the beautifully upgraded model home. You’ll want to ask what finishes are included with the base price and how these differ from the home you were able to tour. The question to ask here is what’s standard and what’s an upgrade? It’s important to figure out what finishes and appliances are included in the base price since you likely won’t meet with the design center until after going under contract.
Are you allowed to purchase your own appliances or materials?
Had your heart set on butcher block countertops but the builder doesn’t offer them? It’s possible that you may be able to purchase them yourself and then have the builder install them. Alternately, some builders won’t let you purchase your own materials, but they will let you bring in your own appliances, even on items that are included in the sale, like sinks and toilets. Keep in mind that, in terms of appliances, you probably will have to make some purchases on your own, such as washers, dryers, and refrigerators.
If you can bring in your own materials or appliances, will you get credits?
Let’s say the base price of your new construction home includes a kitchen sink worth $200, but you’d like to upgrade and purchase a sink on your own that costs $400. Will you get $200 off the purchase price for not using the sink that’s included in the base? Some builders offer credits for any upgrades or self-purchased materials or appliances, while with others you’ll just have to eat the cost of the originally included item. Credits are a nice touch, but they’re not usually standard, so it’s best not to go in expecting that you’ll get money off the base cost for purchases like these. In general, builders don’t like to lower the base cost, but if they do offer credits, that’s a win for you.
Is landscaping included?
Landscaping may come included with your home purchase, while some builders may expect you to move-in with an unfinished yard. This yard then becomes your responsibility to landscape (generally within a certain amount of time per the contract). Clearing up whether landscaping is included can help you make sure there are no surprises come move-in day. Ask whether landscaping is included, and if so, what that entails and if there is any sort of warranty on the materials so that if your newly sodded grass dies right away or some other mishap occurs you’re not responsible for fixing it.
Are there any homeowners rules or regulations?
The new development may have an HOA, but if there’s not, the builder may still set some guidelines as far as what’s allowed and what’s not on your property. For example, you may not be able to use a particular type of fencing or install a shed in your backyard. It’s better to ask this question early and know what to expect than to move in and find out that you can’t bring into fruition certain plans you had for the space.
Are there any financial incentives for using the builder’s preferred lender?
A builder may offer certain incentives or discounts on closing costs if you choose to finance your home through their preferred lender. It’s important to ask whether the builder offers incentives for working with their lender, but don’t make your final decision about where to get your mortgage based on the discounts alone. Obtaining a mortgage through a different lender could be a better deal, and you may want to shop around to get a few quotes.
If it’s your dream to build a new construction house, go in to the process with an open mind and a clear idea of what you can expect. The more questions you can ask in the beginning, the less surprises you’ll potentially face in the future.
The team at Modern Nest Real Estate Group is here to accompany you on any new construction sales meetings to make sure your best interested are being represented as well.