In a world where marketing can be everything, it is easy to fall in love with a newly constructed home without seeing it. The beautiful model homes, tasteful staging, immaculate photography and renderings can sometimes be misleading. Here are five tips that may help you if you are planning to purchase new construction!
- Fact check
There is a difference between a newly constructed home and a redeveloped home.
Two questions you may want to ask are;
Is the foundation new?
Were any parts of the old structure used or was it completely torn down?
The answers to these will help you understand if the property is truly new construction and not a redevelopment. There is nothing wrong with purchasing a redevelopment, some renovated or redeveloped homes have strong bones and simply need a little love to look brand new.
- Who is the developer?
It’s a good idea to do your research and try to see previous projects developed by the developer or the sponsor. If you can look at homes they have previously built, it will help you assess and review the quality of construction and materials used.
- Read the fine print!
We always suggest hiring an attorney and asking them a lot of questions! Although you may not be legally required to hire an attorney, it is important to read the fine print and do your due diligence.
- Inspections are key
We suggest that you hire a licensed property inspector to inspect the property and give you a full report. Review this report thoroughly and ask questions.
- Plan ahead
A lot goes into completing a new construction project. There are multiple inspections and certifications that developers need to complete before you can close and move in. It is not a bad idea to line up temporary living arrangements if your lease is ending or you are selling a home while relying on the set-closing date. You may want to speak with your mortgage lender about a long rate lock expiration so you aren't stuck paying additional fees in case of a delay.