The home buying process is a complicated one. There’s no doubt about that. There are realtors to deal with, a wide range of fees you’ll have to pay, and the actual act of choosing which house you want to spend the next several years of your life in. This decision starts with choosing to buy an already established home or a newly constructed, custom home. For many, buying a newly constructed home is the more appealing option because you’ll get all the new bells and whistles, so to speak, but there are several things you should know before signing on the dotted line.
You’ll Most Likely Need to Make Building Decisions
If you purchase a home before it’s completely built, you’ll get to have some say in how the home is made (in most cases). If you’re buying a home in a newly constructed neighborhood, the contractor will likely have a selection of floor plans and materials for you to choose from. If you’re buying a completely custom home, you’ll be able to choose everything from start to finish.
This includes everything ranging from the materials your floors are made out of to the appliances in your kitchen. Obviously, more expensive materials are going to drive up the price of your new home, and potentially delay the construction if they have to be sourced from somewhere farther away. However, if that’s something you’re willing to wait and pay for, it’s something that you can do (assuming your contractor is on board).
New Construction Homes Are Expensive
Newly constructed homes have the most up-to-date appliances and don’t have the aged problems that homes that were built two decades ago do. This is often one of the most appealing things when it comes to buying a newly constructed home. It’s also the thing that makes your potential new home more expensive. If you have room in your budget for it, newly constructed homes are a great option.
It’s important to note that with newly constructed homes, you are less likely to have expensive maintenance issues in the first few years of owning. If you do end up having issues, many homes and materials have some sort of warranty that you can use to pay for those issues. Take that into consideration when weighing your options in terms of the price difference between new construction and old homes.
The Timeline May Be Extended
Unless you manage to sign on the dotted line the day the house is finished, newly constructed homes are not move-in ready. You’ll have to wait for the construction team to finish the home, and that often includes delays. Despite the contractor’s best efforts, materials are delayed, weather events occur, and mistakes happen. This means, if time is of the essence with your moving schedule, you should look for a home that’s already built. Newly constructed homes require time to be built before you can move in, even if you sign the papers earlier than that.
You Still Need an Inspection Done
Just because the home you’re buying is newly built doesn’t mean that it’s perfect. You should still arrange for your new home to be inspected by a third-party home inspector. They’ll be able to evaluate the contractor’s workmanship and make sure your home is ready for you to live in. It’s unlikely that they’ll find many issues (compared to buying an older home), but it’s important for you to have this done on the off chance that there is something wrong.
Don’t Forget to Research the Area
Many people get excited about the idea of moving into a newly built home, with all the decisions they get to make and the top-of-the-line appliances. It’s important that you don’t forget everything else that you should consider when buying a home:
- Do you like the neighborhood that the home is in?
- Is the school system great for your children?
- Are you satisfied with your commute to work?
- Is there going to be disruptive construction going on for a while around your home?
Homes are expensive, and you don’t want to get excited about one thing and forget about four other things that make your “dream home” not actually your dream home. Look at the big picture before you sign any papers.
