There's a certain air of excitement when looking at a brand new development being built from the ground up. Everything and everyone is new, and you want to be among the first to live there.
Buying a new house is a little like commissioning a new art object. You pick how the house will look on the outside (the elevation) ,and you pick the carpet colors, tiling and any other options you would like to have on your work of art. The builder ultimately controls the limits of how the house will look in the end, but you can add your own personal touches along the way.
There are a few things you need to know before buying a new home from a builder. The first thing you should remember is that the people on site at the development work directly for the builder. They are paid by the builder, and they are not on your side. They have no reason to be. Sure, they will be more than happy to sell you a home, but on the builder's terms.
Before you visit any new home site you must first find out if the builder requires that your Realtor accompany you on your initial visit. Some builders will not work with your Realtor if you do not either; let them know that you are working with a Realtor, or your first visit to their models is not with your Realtor. That is why it is so important to find out if your first visit needs to be with your Realtor. Remember, your Realtor is there for you and has a financial and ethical responsibility to help you buy the right house.
Second, builders price their homes in many ways. The price they show you is the base price and does not include the lot premiums and any upgrades that you may want. Your Realtor can help you review the options and help you evaluate the costs more effectively. It is important to know which items are considered "standard" on the house, and it is important to know which items are considered "options." Often times a builder will add many upgrades and options to their models to give them that extra appeal and to entice you to buy the upgrades.
Third, builders have what they refer to as "elevations." An elevation is the outside appearance of the home. These elevations can be anything from: the exterior finish of wood, vinyl, brick or stucco, to different roof lines of either gabled or hip, to: covered front porches and other architectural features. The elevation that is considered the base is usually the least expensive and most simple architecturally speaking. Other elevations cost more incrementally. Your Realtor will be able to guide you toward the upgrades and elevations that will be best for you. Your Realtor will also be able to tell you which upgrades will be most likely to add additional value to your home when it comes time for you to sell your home.
Fourth, now you must choose your lot. If you are in an area where you can have a basement, then the lot you choose may be influenced by the type of basement you want. The builder may not have a charge for a standard lot, however not all types of basements will fit on a standard lot. If you want a walk-out or garden level basement you may need a lot that is sloped or one situated on a hill. Lots such as these are generally considered to be premium lots, and as such the builders will normally charge a fee, or lot premium, for these lots. Lot premiums may also be charged for oversized lots, lots with a view, and lots situated on a cul-de-sac. A few builders may charge lot premiums for every lot. Your Realtor can help you to evaluate your lot choices, and in making the wisest decision based on the needs of you and your family.
Now that you know the model you want, the base price, the lot premium, and the elevation cost, you are getting close to knowing your purchase price. You must now consider what options you would like to include in your new home. Your Realtor can help you to go over an options list. Options may include things such as: upgraded carpeting and flooring, bay windows, fireplaces, central air conditioning, whole house fans, upgraded appliances, and deluxe bathroom fixtures. Again, your Realtor can help you to decide which of these options will be the most beneficial for you and which items may add additional value when it comes time to sell your home.
While some options can be good values there are others that you can purchase elsewhere at a better price. Upgrades are usually chosen and priced at an off-site design center that is a representative of the builder. Most options require payment in advance and can really add to the price of the base house. This is a good time to get out your wish list and decide which options are the most important to you. You will also need to think about how long you intent to live in this house before choosing your options. If this will be your last house, do you really want to finance certain options for the next 30 years. Often you will not have the opportunity to go to the design center until after you written the contract.
Now it's finally time to write the contract. Remember, the contract has been written by the builders' attorney who represents the builder and the builders interests. Not only is it extremely important for you to have your Realtor carefully look over the contract, but you must also feel comfortable asking any questions that you may have. Your Realtor can represent your interests and make sure that any additional provisions that need to be made on your behalf will be added to the contract.
It is important, during the construction phase, to ask questions about the building process. Ask the builder if you may speak to other homeowners currently in the subdivision about how they like their house. A good question to ask is, "Do you love your house?" As your house is being built, it is also a good idea to check on it from time to time. This may help you to pick out and correct any problems that may arise. Here also is an area where your Realtor can be very helpful. While you may only purchase a new home three or four times in your life, your Realtor sees new homes every day and has been through the construction process hundreds of time. This experience should enable your Realtor to help you evaluate your new home with a critical eye. It is also a good idea to periodically check and make sure that the timeline you have been given is correct. It is not easy to wait for completion, but it will be well worth it.
Don't forget, the builder may not be your friend, but it is still a good idea to make friends. If you are enthusiastic about your new purchase, they are more likely to want you to be happy. Any problems you come up against, either during the building phase, or after, will be much easier to deal with if you have a good relationship.
It is very important, through all of this, to have a reliable Realtor that has current knowledge of the housing market and one who will do their best to help make your purchase easier for you and your whole family. A Realtor can save you headaches and money and can help get you more quickly and smoothly into the house of your dreams.
