You are thinking about buying new construction. A few simple facts to consider
where you are buying from a builder or you are doing a custom built home, it is
not as easy as it looks.

1. Production builders do it fast. They offer all kinds of upgrades if…..now
read carefully if you use the closing agent and mortgage company
(sometimes even insurance company) that they want you to use. Why you
may ask. Their profit margin is on this part of the transaction. So if is
built in to the rates. A buyer uses their own folks they get no upgrades. In
the long run you will be paying 10 times the price for the upgrades. Also
the upgrades and the build is not top of the line materials it is the less
expensive as they also buy in bulk ie: builder grade carpet etc.

2. Beware of the timing for new construction. The builders rely on sub-
contractors (believe it or not hunting season can play into this), weather,
the slowest of Cities or Counties getting to the site to inspect the build,
availability of materials and the list goes on.

3. If doing a custom build you need to factor in the site cost. Price of the
land/lot, utilities (well, septic, or county hook up to water/sewage),
grading the land/lot, tree removal, permits, and landscaping: you get what
all the extra cost can add up too.

4. Homes 90% of the time do not come in on budget. Why because in the
middle of the nigh you wake up and say oh dear, I need to change or add
this to my home. Change orders cost.

You do not want to be the biggest or the best in the neighborhood. This
rule of thumb applies to new construction as well as resales.

5. All builders are not created equal no matter if they are custom or
production. If yours has financial problems and runs out of money mid-
construction, you could be out of luck in the worst possible way. That's
why it’s important to vet your builder before signing a contract.
Ask to see your builder’s financials and request references so you can talk
to people who have worked with that builder. Be sure to review at least
one live example of your builder’s finished product — either in your
development or a comparable one. Check on line for what others who has worked

with them has to say. Remember not everyone will be happy so
weight out the negative comment to how may positive one you will read.

6. Buying new construction, certain items you’d expect to be included in your
home’s purchase price may, in fact, be on you to cover. For example,
some new construction homes don’t include fixtures like towel rods,
window treatments, or even hardware for your kitchen and bathroom
cabinetry. This is mainly true with production builders. When you buy a
new construction, certain items you’d expect to be included in your
home’s purchase price may, in fact, be on you to cover. For example,
some new construction homes don’t include fixtures like towel rods,
window treatments, or even hardware for your kitchen and bathroom
cabinetry. Read your contract carefully so you understand the expenses
you’re liable for and what your builder will be providing. Similarly, some
builders put provisions in their contracts that let them charge buyers for
unexpected costs during the construction process. Read these clauses
carefully — if you don’t, you may find that your home’s purchase price
goes up 5% for reasons outside your control. Review your contract
carefully so you understand the expenses you’re liable for and what your
builder will be providing. You may want an attorney to review it before
you sign or at least a Real Estate Broker.

7. When you’re shopping newly constructed properties, chances are you’ll
tour a model home at some point for production builders. These homes
basically function as interactive showrooms that are gorgeously outfitted
with the more premium upgrades a builder has to offer. Their purpose is
to demonstrate the customization a builder offers by allowing buyers to
experience the full design potential of a home. Before you get too lost in a
model home’s beautiful design, it’s imperative to remember one thing:
model home configurations aren’t usually reflected in base sales prices.
That’s because most base prices are based on the homes featuring
“builder grade” options, aka less premium materials and finishes.

8. A good rule of thumb is for you to have a home inspection on all homes
whether it is new construction or resale. There will always be something
that will show up. In new construction remember you have the sub-
contractors. Yes they do have issues too that arise. If the builder say no
you do not want that home!

9. Good questions for you to ask the builder (site agents in a production
setting)

 What are the builder’s other projects? What percentage of the
units/properties/plots have sold so far?
 Who is your point of contact during the build?
 Which features are included and which are upgrades?
 What happens if there’s a delay in the schedule?
 How often will you be able to view the home during construction?

Whether you want to be the first to leave you mark on a home or simply want to
personalize your personal space, there are countless reasons you might decide to
purchase a new construction. Regardless of those reasons, the fact remains that the
home buying process can be a bit tricky. That means it’s important to be as diligent and
thorough when buying a shiny new home as you would when buying one that’s “gently
used.