Are you considering buying a new construction home? For first time home buyers and experienced buyers alike, new construction homes are very beneficial. Not only can you add personalizations and custom features to your brand new home but you can even choose the community it's located in, ensuring you are in the perfect neighborhood. In this article, we provide insight into new construction home buying that you may be unaware of. As you compare your home buying options, keep these 5 things in mind regarding new construction homes.
5 Must-Know Tips For New Construction Home Buyers
New Construction Homes Are Sometimes Not Listed in Your Local MLS
Typically, when you are looking to purchase a home you'd search your local MLS listings to identify for sale homes and their details. However, homebuilders often only have sales employees and they are not responsible for listing homes available on MLS search engines. Often, homebuilders aren't even members of an MLS! They are more likely to advertise new homes available on local websites, in the newspaper, neighborhood magazines and with billboards. This is one of the reasons why it's important to hire a buyer's agent when considering new construction. If you have a home style, neighborhood and maybe even a community in mind you can hire an agent to help you identify the best builder to fit your needs.
Homes in New Construction Communities Can Be Sold Before They Are Built
In order to get their financing lined up and map out the construction and sales process, many builders will sell homes before they are built. The purpose of this process is to sell as many homes as they can to prove to lenders that the project is successful and get approval to continue to another phase.To do this, buyers will be able to go into model homes and review floor plans, fixtures and finishes. As a buyer, this gives you a sense of what the home will look like and if you are ready to move forward the next step is to put down a deposit with the builder.
It's important to note that all homes in the community will not be available at once. Even if there are 100 homes planned for the community they will be released in phases. As the builder sells the homes released, they will identify quickly they sell and the next phase may increase in asking price. The total sales cycle for a new construction community could be years and it's not uncommon for the asking price of the last phase of homes to be 10% more than the first.
Buyers in Who Purchase First May Get The Best Price
Early in the sales process home builders will want to get as many homes as possible under contract and quickly in order for the community to be more desirable for future buyers. For home buyers, early in the sales process of a new community is the best time to get a great price. There is more room to negotiate the price down with the builder and you can end up paying less for your home! With an agent by your side, you don't have to worry about handling the negotiations yourself. Your agent will work directly with the builder, for you, in order to get the best price possible at that time! Learn more about working with an agent in the new construction process here.
With Home Builders, There Is No Emotional Attachment
This may seem like an odd tip or benefit but it can mean so much for your buying process! When you purchase an owned home, the seller may have lived there for many years. The seller will have emotional attachments to the home which could cause the asking price to be higher and negotiations tougher. With a home builder, you can expect no emotions to be involved with the sale of your future home. This makes it easier to negotiate and understand the pricing for the home, with or without an agent. You also will benefit from a home designed for your needs rather than someone else's. It's just a numbers game to the home builder and they want to get contracts signed quickly!
Get Discounts on Upgrades For Your New Home
With a home builder, you can utilize your real estate agent to negotiate upgrades on the home. While the price will remain the same you can negotiate for upgrade packages as part of the sale. Hardwood floors to replace bedroom carpets, higher-end appliances, high quality countertops and more could be part of these upgrade packages negotiated with the builder. These top of packages could end up amounting to thousands of dollars! For first time buyers, new construction could be the perfect way to get what you want in your home for the best price.
Don't Buy New Construction Without an Agent!
You find the home, we negotiate the deal
We sell dozens of new construction homes a year and have successfully negotiated discounts and upgrades with the top builders in the DC region. When it's time to buy a new construction home, work with an agent with the experience and skills to protect your interest. You found the home and you should earn the commission. Our fee is 1% of the sales price or $5,000, whichever is higher. The remaining commission, 1.5%, is rebated back to you. No hidden fees and no gimmicks.
"Thanks for reading! I’m passionate about empowering home buyers and sellers with professional advice and unbiased information, throughout the real estate transaction. Unlike most agents, I always put clients first. When it comes to negotiating, marketing homes, and sealing the deal, I’ve got the experience and knowledge you’re looking for. If you have any questions about moving to VA, D.C., or MD, don’t hesitate to reach out."