When (and How) to Buy a New Construction Home
Sometimes buyers and sellers forget just how emotional it can be to either let go of a home or to buy a new one. It's why some buyers find it easier to wipe the slate entirely and buy a home with no history attached to it. Not only are all the fixtures new, but so are all the memories. Learn more about when it's right to buy a new construction home, and how to go about getting your hands on the property.
The Benefits of New Construction Homes
There are many benefits of new construction homes. New construction homes are built to the specification of the home buyer, so they're basically a dream home for the person who moves in. New construction homes also have all new fixtures, so they're unlikely to experience major maintenance problems in the first years that they're occupied.
Homeowners often like the feeling if newness that comes from living in new construction homes. In these homes, floors don't creak, and all of the parts still function as they should.
Older homes often have problems like lack of storage. In modern homes, homeowners are able to choose the perfect amount of storage for their needs. Often, this includes walk-in closets and extra rooms for storage. Finally, new construction homes are often made out of sustainable, green materials to reduce the home's carbon footprint.
Buying a new home that isn't quite complete will require some flexibility on the buyer's part. Builders can be delayed by anything from a major blizzard to new zoning regulations put forth by neighborhood officials. Most delays are legitimate, and it may take a while to get back on track. If a buyer has a strict deadline when it comes to leaving their old home, they may want to consider a traditional home sale. Remember that staying in a temporary place for an extra three months may not be nearly as bearable as it sounds.
Negotiating on a newly constructed Soldotna home plays by different rules than a traditional home, so buyers may need to get a little creative to get the deal they want. A seller on a new project isn't going to want to drop their prices after they've gone public. If a buyer wants to negotiate the actual purchase price down, they'll need to commit before the home is even built.
The other option is to think outside the box, so the builder doesn't get a reputation for dropping their prices. The way sellers choose to negotiate with buyers typically has more to do with 'hidden' fees that won't be recorded in the public register. They may put in granite countertops at no extra charge or cover some (or all) of the closing costs.
Best Time to Buy
A typical home seller may be willing to live in their home until they meet the perfect buyer, but a newly constructed home builder doesn't have that kind of luxury. The seller has no emotional attachment to the home, so they're generally only factoring in cost-benefit analysis when it comes to interest in the home. Letting the house sit on the market is the equivalent to throwing money down the drain.
If a home buyer can find a home that's been sitting for over a month, they'll be in a better position to make additional contingency demands to settle the sale. Or as mentioned, buyers can commit to buying the home prior to the start of construction to raise their chances of getting a better deal.
Contracts and Forecasting
Inspections, contracts, and research should all be priorities when it comes to buying a newly constructed home. Everything has to be written down and formalized for it to hold up in court, so spell out expectations after the seller has explained their side. Be wary of a representative who's trying to pressure you into signing the contract or into using their lender.
Make sure the home has been checked by an objective inspector as well. Just because a home is brand new, doesn't mean it's well-built. Buyers should also be doing additional research into the neighborhood. Buyers should know if the city is planning to build a new ramp near the home in five years.