Advantages of buying a new construction home
- Price : Many new construction homes are built and sold at a lower cost than surrounding existing homes. This is largely due to newer construction techniques, cheaper materials and labor supply.
- Maintenance : Most new construction builders will be responsible for maintenance of the homes major items for up to 10 years. Standard construction techniques and local building codes ensure that the home is built to a high standard for minimum maintenance.
- Energy Efficiency : The local building codes require all builders to provide information to the buyer and the state proving that the home meets the current high standards for energy efficiency. With solar electric and spray foam insulated roofs this can reduce outgoing expenses considerably.
- Standard included items: These can range from different builders but generally fitted appliances such as dishwasher, refrigerators, range and microwaves are included
- Location : Most locations are close to main highways and travel facilities.
- Size : When a development is restricted in size the builder will build upwards adding floors to increase square footage.
- Safer: With the new building codes, new construction homes are built to a safer standard for fire, hurricane, tornado and earthquakes.
- Warranties : As part of the maintenance package warranties are included on the structure ad major structural components of the property.
- New feeling : We all know that something new can change our whole outlook on things. A new construction home in most cases changes the way we look at our home and instead of trying to fit old furniture we had in our last home we tend to buy many new items enhancing our environment and the feel good factor.
- Opportunity to buy a model home : If you are lucky to be an early purchaser on a new construction home site many builders will sell their model homes which has all the upgrades and sometimes lease it back from you. This will be for a period of time while they continue to market the other homes. This is a great opportunity to get discounted upgrades and also a revenue in return.
- If you are not a construction expert you are relying on a salesperson to guide you into buying the home what they want to sell
- Limited supply : Many builders will only release small phases of the development to keep the supply low and retain the ability to increase costs in further stages. If fact that is used a sales technique to get a buyer to sign a contract as soon as possible.
- Time scales: If it is not a inventory home the construction process can take many months depending on size.
- Delays : Delays can occur at anytime and can be considerable. If the contract is not a closed fixed price this can increase the price.
- Builders can default: Yes it can happen because of labor disputes, materials shortages and bad practice. Always check the contract to see how you are covered in this event.
New home buying process
Buying a new construction home is very similar to buying a resale home with the due diligence that needs to be carried out.
The difference with new construction homes is that the many buyers feel they do not need to have a real estate agent representing them as there is nothing to go wrong. If you were buying a car and knew nothing about the mechanics of a car you would defiantly ask a mechanic for advice and assistance. The same should be applied when buying new construction homes in having a construction expert assist your process.
So what defines expertise? Experience & Qualifications. The point to remember is that not all realtors are construction experts.
Now if the expert was offering to assist you at no cost to you, why would you still not use them? My services on New construction home buying are absolutely FREE to the buyer. All builders and developers have a built in cost within the price of the home to allow for buyer representation and if the buyer is not represented or chooses to represent themselves this becomes a bonus to the builder or developer not a credit to the buyer. So here is what an untrained eye could be missing in new construction.
This photograph shows the pool construction in Florida directly before applying the spray concrete infill. The building paper at the far end of the pool which is designed to support the concrete and give consistency to the concrete depth is not complete. The steel reinforcement designed to give strength to the concrete is inadequately supported on the base of the pool giving inconsistent depth to the concrete to the pool base which will allow for weakness.
Shortly after I took these photographs the contractor sprayed the concrete infill and two days after the pool deck concrete was laid.
This photograph shows the internal timber stud wall framing on a concrete slab, excessive water is present on the slab from the incomplete construction causing the timber stud supports to absorb the water and buckle.
I must point out that this was not the house I was representing the client but the next door property .
It is important to note that if my services are required the builder or developer must be made aware of this at the initial enquiry or viewing so that it can be recorded on file. If you have already started the process and still want my advice and representation a separate commission agreement will have to be signed by you.
Buyers will most of the time know what area they want to live in based on cost, employment, schools and convenience to amenities. So that is the first hurdle already overcome. Many buyers decide on a certain builder or development by driving though the locations and literally stumbling across it.
My consultation will consider
- Builder reputation
- Previous land use
- Future planned development
- Construction designs
- Construction project plan
- Type of purchase agreement
- Exclusions & Additions
- Energy Efficiency
- Certified Home Inspectors available within the area
- Withdrawal and delayed cost penalties within the purchase agreement
- Review with buyers construction plans
- Help negotiate the sale agreement
- Periodic meetings on site with client and home inspector
- Attend the final walk through and closing
Contact me directly on + 1 310 918 4623 for your FREE consultation to identify where I can assist you purchase your new home