Question Of The Day: How To Buy A New Construction Home?
Are you ready to build your dream home? Buying a new house is a thrilling experience, but building a new house is a whole new level of excitement. In this new video, The Corcoran Connection founder and top-notch realtor Jeanine Corcoran shares five expert tips on how to buy a new construction home.
A new construction home is a home wherein the buyer is the first occupant. The buyer can purchase the land from a developer and then work with a builder for customization and construction.
Buying a new construction home is a milestone, but it can also be a complex process, especially for first-timers.
Jeanine’s Top New Home Construction Tips
Tip #1: Use a realtor.
Your real estate agent is your partner and representative. Their job is to help you navigate the ins and outs of building a home. They can represent you during negotiations with the builder or the inspector, among others.
Jeanine notes that one of the things they do for their clients is to help them review their contract, so they are well-informed before making a major commitment.
Tip #2: Know the costs of the home.
Do you need to pay a lot premium? How much will an extra bedroom cost? These are just some of the cost factors you need to think about.
When you go to the design center, it is easy to get lost in all the tempting cosmetic options available. But you need to go in with a set budget and a list of priorities. Jeanine recommends focusing on the kitchen and flooring. The rest can follow, with more time and budget.
Tip #3: Negotiate with the builder.
Do not be afraid to negotiate with the builder, even if it’s not something they are looking forward to. Builders naturally want to keep the home value up. If they do not agree with the negotiating the price, they may, instead, offer credits that you can use for design and customization.
One of the perks of having a realtor is that they can handle this for you if negotiating is not your strong suit.
But Wait, There’s More.
Tip #4: Know your closing costs.
Before signing up with your builder’s preferred lender, shop around and compare the rates. You can also ask your realtor for recommendations. Some builders may offer to pay a substantial amount towards your closing costs as part of an incentive offer. But this may also mean that you must sign up with their preferred lender with higher interest rates and fees.
You should also list anticipated costs including title policy and builder’s fee, if applicable.
Tip #5: Hire an inspector.
According to Jeanine, over 50% of buyers opt not to get an inspector when buying a new build because they usually have a warranty with the builder. But if you are already investing in new construction, you may as well think long-term. An inspector can identify issues that, if left unchecked, can cost you more time and money down the line.
Additional note: For new construction homes, an inspector must carry certain insurance and qualifications to be approved by the builder.
When It Comes To Homes In Central Florida, We Are The Experts.
In any real estate transaction, it’s ideal that you work with a realtor. It is particularly important if you are buying new construction. And if you are looking at homes for sale in Central Florida, your first order of business should be to call The Corcoran Connection.
Jeanine is a Saint Cloud realtor, but she and her team can help anyone who wants to buy, sell, or rent property in Central Florida. They are renowned industry veterans whose deep-rooted knowledge of the local communities gives clients a strategic edge.
Check out the website to learn more and follow The Corcoran Connection’s official YouTube channel for more handy real estate tips.