Have you been thinking about buying a new construction home? Are you looking forward to that new house smell? The brand-new roof? The bathtub that has never been used before? It’s all really exciting and fun, right? But, before you picture yourself walking barefoot on those brand new floors, you will want to stick around because I will be sharing some important questions to ask when buying a new construction home!
Question #1 The most important question when buying a new construction home…. Who does the sales agent in that little trailer on the property represent?
If there is only ONE THING that you take from this article, I want you to understand how vital it is for you to find a trusted real estate agent to help you through this process. The sales agent for the property is ALWAYS working for the builder and is bound by law to be looking out for his best interests. If you walk in without your own agent, how many people are looking out for your best interests? That would be ZERO! Always have your own representation! A trusted real estate agent will have your back and will know how to read and negotiate any builder contracts. And, the builder pays your agent’s commission for you. There is nothing to lose!
Question #2…. What kind of financial incentives are offered for using the builders preferred lender?
Typically, there is not as much wiggle room in the bottom line of a new construction home, but often times a builder will offer special incentives, or money towards certain upgrades, if you use their lender. However, you need to do your research. Check to see how much the lender will charge for the loan and the interest rate offered. It may make more financial sense for you to use your own lender.
Question #3…. If something goes wrong or I simply have buyer’s remorse, how many days do I have to get my deposit back when buying a new construction home?
Just like when you purchase a resale, you will be required to put some money down toward your purchase of a new construction home. This is called earnest money or a deposit. It goes towards the purchase price of your new construction home as long as you don’t break the contract. Make sure you know (and have it in writing) how many days you have to receive that deposit back just in case something was to go awry. And, again, this is where your agent will come in handy to help you with those terms.
Question #4…. Will there be delays when building a new construction home?
The answer is almost always “Yes” when building a new construction home. And let’s be real….no one likes to wait, especially when it involves your living situation. But, when building a new construction home, there will be delays. It could be due to materials not arriving on time or labor issues. Even the weather can cause delays! Closing dates get changed all the time and, when delays happen, it can leave you feeling like you have no control over your circumstances. Your agent can be your voice in this situation. Sometimes, these delays in closing can be negotiated in your favor if you have someone there to represent you.
Question 5…. What are the standard finishes that are included in the base price?
We’ve all been there….you walk into a model home and it is decked out with all the bells and whistles….the hardwood floors throughout, the high end appliances and the marble counter top in the kitchen and bathrooms that you just can’t live without! The last thing you want to hear is “Oh, that’s an upgrade.” Don’t be fooled by the model! Get in writing exactly what is included. Think of it this way….most builders know that once you see something and fall in love with it, you may be willing to go above your original budget to get what you want. It’s like going to buy a new car. The salesman will often bring out the top of the line vehicle for you to test drive because they know once you get in it, you won’t want the lower model. Make sure you go in to the model home knowing that not everything you see will be included in the base model of the new construction home.
Question #6…. What are the long term plans of the subdivision?
The builder should be telling you upfront what kind of amenities will be built like a pool, tennis courts, and sidewalks, but you will also want to find out how the builder intends to finish the neighborhood. Will it be in phases? Some subdivisions are built in multiple phases and sometimes you can get a better price when you purchase it during phase 1. However, you need to understand that if the subdivision is going to have several phases, you could be living in a construction zone with trucks and noise surrounding you for quite some time. Know what you are getting yourself into.
Question #7…. What are the Home Owners Association Rules, Covenants, Conditions and Restrictions?
You need to know the HOA rules up front! The last thing you want to do is to bring your furry little friend to his new home only to realize that you can’t build a fence for him! Or, what about that storage shed you were planning to put in the backyard for the lawn tools? Remember, the HOA is there to preserve the community property value, but you need to know what you can and cannot do on your own property. It’s also a good idea to discuss any HOA fees. What do these cover? Do they cover lawn care? Garbage pickup? The swimming pool? It would be awful to get stuck with a huge monthly HOA bill that you weren’t planning on.
Question #8…. What warranties do the builder provide?
Builders typically offer 1 or 2 warranties for their new construction homes. The first is a 1 or 2 year workmanship warranty. This warranty offers limited coverage on the materials and workmanship for a specific amount of time. Things like the carpet, doors and windows, and landscaping may be covered in this warranty. The length of the warranty depends on the home’s features. For example, a one year builder warranty will often cover workmanship and materials. A two year warranty will most likely cover HVAC, electrical and plumbing. The second type of builder warranty is a 10-year structural warranty. Structural defects are any damages to the home that make it unsafe to live in, like foundation issues or issues with load bearing walls, columns or beams. You will want to be sure to find out what any warranty does and does not cover before signing any contract. Always, always always read the fine print!! I know its HARD! Your real estate agent can definitely help you in navigating these warranties and can also help you to order your own home warranty to cover any missing items.
So, there you have it! I hope this has given you some good questions to ask if you are considering buying a new construction home.
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The HĀVN Group with Keller Williams Chattahoochee North is a team of REALTORS® serving metro Atlanta. We help home buyers who are relocating to our beautiful city and suburbs and guide sellers in selling their homes for the most amount of money with the least amount of stress.
Tracey Scholen is the team leader of The HĀVN Group. She is the proud wife of a husband who can fix anything! When not selling real estate, you can find her swinging a tennis racket, drinking a London Fog (ask for this secret drink at Starbucks!), or chauffeuring her 3 girls around town.
Bianca Giddens has lived in the Atlanta area for over 20 years. She loves playing tennis and watching college football with her husband and 3 sons.
Meg Sams learned to see the beauty and potential in structures of all shapes and sizes, growing up with an architect mom and engineer dad. When not spending time with her artist husband, Roy, and her busy boys, Meg loves playing tennis and sticking her toes in the sand.
If you want to talk to us about moving to the Atlanta, Georgia area, we would love to chat! Feel free to contact me:
Tracey Scholen
📧 [email protected]
☎️ 404-274-4514
We are REALTORS® at Keller Williams Chattahoochee North, located at 3390 East Jones Bridge Rd. #100 Peachtree Corners, GA 30092. We are licensed to sell real estate in the state of Georgia.
