The new construction home buying process is different from purchasing an existing home. According to the U.S. Census Bureau, new home construction rose by over 22 percent as of February 2022.
If you’re thinking of buying a new construction home, there are some key things to keep in mind.
Read on for a how-to guide and tips for buying a new construction home, so you’re ready for the adventure.
Look at the Pros and Cons
Before buying new construction, it’s important to weigh the pros and cons. The benefits of a new construction home include more options to customize and better energy efficiency.
But there are some cons of buying new construction, too. First, it will likely cost you a lot more than a pre-existing home. The process also takes much longer to complete so your move-in date could be further away than you want it to be.
On the upside, a new construction home will mean less maintenance for you. Since everything is new, major components will likely last much longer and should also include a warranty.
Buying New Construction: Find a Good Agent
Even if you decide to go with new, it’s still wise to enlist the help of a qualified real estate agent. Most agents know many of the local builders in your area and can help you negotiate a better price.
A real estate agent is also familiar with different neighborhoods that have new construction homes. They can help you find a newly built home in a location that works for you.
Your agent works for your best interest and can help you navigate the home buying process. They’ll also talk to builders to make sure you’re getting the best deal.
Financing Your New Home
The cost of buying new construction varies depending on your situation. If you’re buying land, you’ll need to secure a separate construction loan.
Many builders offer in-house financing if you purchase one of their homes. Make sure they have good rates and terms so that you’re sure you are getting the best deal possible.
No matter how you choose to finance your new construction home, always do your research. A mortgage broker can help you find the best rates and terms for your financial situation.
Think about whether you need fancy new upgrades or if you can wait to complete them in the future. Holding off on expensive custom options will help you save money on the purchase of your new home.
Build Your Dream Home Today
If you’re thinking of buying new construction, keep this guide in mind to help you make smart decisions. A professional real estate agent and mortgage broker can work with you to ensure you’re getting the best deal.
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