Buying That NEW, New Home

So you’re hopping from website to website, cruising the local neighborhoods, scoping out what the housing market has to offer, eh?  Good idea, it’s a buyer’s market these days. While there are many choices to consider at this point, the most basic one might be whether to buy a pre-owned home or start literally from the ground up and go with a newly built home.

You’re leaning toward the brand new home for a number of reasons. One, with the new home, you’re starting with a clean slate, you get to personalize the place; you don’t have to undo what a previous owner thought was the cat’s meow, namely that four-cat apartment in the middle of the living room. Two, you get the latest in technology and systems. Three, the utility bills will likely be lower as your new appliances are apt to be more efficient. These are just a few of the pluses of a place with that new-home smell.

So new it is. Here are some tips to help you navigate the new-home market.

The Custom of Customizing
You’re moving from room to room in an existing new home that’s caught your eye. The kitchen is perfect and the living room is straight from an episode of House Crashers. You’re falling in love until … the bathroom. The designer appears to be Joseph Stalin. Ugh. Not to worry. Many times you can negotiate your way to a new look with the builder. After all, the labor and materials are still on site as they finish the rest of the new neighborhood. If changes are a go but aren’t finished by closing time, it’s a good idea to escrow some money to give the builder an incentive to complete the work.

Financial Deal or No Deal
How about financing that dream home? Yes, you have options. Oftentimes you’ll find that builders work with lending institutions to offer financing. While it’s not a given that they’ll have a package that makes sense for you, this does create a bargaining chip for you with your lender of choice. Use any leverage you can to get the best deal you can. Shop around and compare terms. And what if a lender doesn’t want you to shop around for some reason? Beeeeep. Beeeeep. Hear that? That’s your “Something’s Wrong” radar. Stay away from that lending institution.

Paper, Please
Any warranty that comes with your new home often states the builder will return to fix problems you might encounter. Such a warranty with a pre-owned home? Not so much. The typical warranty can run from one year to five years. Be sure to read the fine print carefully. Be familiar with what the warranty doesn’t cover as much as what it does cover. Also know who backs the warranty. It could be the builder or a third party.

Be "Fore" Warned
So how’s this new neighborhood you’ll be a part of soon? Will it be a little community with a pool, golf course, tennis courts, park and such? You’ll want to make sure all these amenities are finished, as they’ll not only add personal value to you, they’ll add value to al the properties as well. Check your local building department to be sure the builder has posted a bond for to-be-built shared amenities. Google the builder and go check out previous developments to get a feel for their work.

If you’re in the market for a new home, remember, our wholly owned subsidiary, Mortgage Solutions, LLC (NMLS #277481) offers many options related to buying a home, from a variety of mortgage loans to refinancing to applying online. The trained, licensed professionals of Mortgage Solutions are ready to help you come to a responsible decision regarding your mortgage options.