What You Should Know Before Building a New Home
Whether you are looking at buying your first house or upgrading from your current house, the prospect of buying a house can be a daunting one. But you want your new house to be more than just a building. It will be your home. And as such, you want it to be your perfect dream home. If you plan on spending a great deal of your time at this house, you want it to meet all of your needs. While you spend a majority of your time at home, you want this to be the one. No more moving.
If you’re looking for the perfect house that you can settle down in and turn into your forever home, you just might want to consider new construction. When you build your own home, you have a greater deal of freedom. You can pick the floor plan, layout, finishes, and features. If you’re looking for the perfect house that you can call home, it makes a lot of sense to build a house. Before you rush out into the world to get your home built, there are some things that you should know.
New Construction Homes Might not Be Listed in the MLS
In normal circumstances, when a home is listed, the home is placed on the MLS. However, homes that are new construction tend to not be listed on the MLS. This is because homebuilders try to cut on costs, and they use their own employees for marketing and sales. They’ll typically advertise online, in the newspaper, or with billboards.
Of course, this doesn’t mean that you can’t use your own real estate agent. In fact, you should. The agents and sellers that work for the homebuilders are looking out for the homebuilders, not you. They tend to have quotas and deadlines to meet. With your own agent, you’ll have someone in your corner fighting for you. You’ll just have to let your agent know that you’re looking at new construction, or wanting to have a home built.
New Homes Tend to Be Sold Before They’ve Been Built
If you think about it, this makes a lot of sense. When homebuilders are offering new construction in a subdivision, it takes a lot of time and money to build a house. Therefore, it makes more sense for them to sell the house before they build it. This ensures that they don’t build a house, and then have it not sell. It’s a financial security measure.
They will, however, usually build a model home. This home will showcase the layout and features that you could have in your home. It’s also a great marketing ploy. If the base home doesn’t come with granite countertops, but the model home does, you might be willing to pay more for that upgrade. If you’re interested in a home in a subdivision, you might have to wait, too. They can’t build all the homes at the same time, so the homes are usually sold in phases.
Buy First and You Might Get the Best Discount
For homebuilders, it’s all about the numbers. If you’re among the first to buy a home, you are more likely to get a better deal. The builders need that investment in order to move forward, and to attract future homebuyers. You might want to exercise some caution if you’re among the first, though. If, for some reason, the project fails, you could be stuck in limbo.
Instead of Discounts, You Might Get Upgrades
While it’s incredibly hard to negotiate a better deal when you’re building a home, it is possible to get something. While early buyers might be able to negotiate a better sale price, homebuyers coming later to the party don’t have that luxury. The homebuilders are now concerned about the future value of the homes, and any other homes they may sell.
When they sell a home, that price becomes public record. However, you might be able to negotiate upgrades into the price. Upgrades don’t show up, so the builders get the sale price they want, and you might just get those hardwood floors and granite countertops added in.
Building Your Dream
There can be some risks when buying a new construction home. But if you do your research and have a solid real estate agent on your side, you can get your dream home built. Just know that you will most likely be paying more for a new home than an older, already built one. But if you play your cards right, you might be able to negotiate some upgrades that will make your dream home perfect.