{"id":49885,"date":"2021-04-23T11:23:50","date_gmt":"2021-04-23T18:23:50","guid":{"rendered":"https:\/\/www.movoto.com\/blog\/?p=49885"},"modified":"2022-04-19T22:55:16","modified_gmt":"2022-04-20T05:55:16","slug":"8-tips-when-shopping-new-construction-homes","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/8-tips-when-shopping-new-construction-homes\/","title":{"rendered":"8 Tips When Shopping New Construction Homes"},"content":{"rendered":"

New construction homes are exactly that \u2014 new. Popular with today\u2019s home buyers, new builds offer customization options that simply don\u2019t exist with a pre-owned home without remodeling or renovation. In fact, in January 2021 alone, 923,000 new homes<\/a> sold in the United States.
\nWhether you\u2019re considering a new build because you want a truly new home or a property built to the latest quality standards, there are many great reasons to choose a new construction home.<\/a>
\nHere are a few tips that will keep you ahead of the curve as you start your search.<\/p>\n

#1. Find a Licensed Real Estate Pro<\/h3>\n

Buying a home is one of the most significant purchases you\u2019ll make in your lifetime \u2014 it only makes sense that you\u2019ll want the support and guidance of a real estate professional<\/a> to walk you through the process.
\nWhen you start your search for a new construction home, you\u2019ll often meet with the builder\u2019s on-site sales agent to tour model homes. But keep in mind that not all states require sales agents to be licensed and the on-site sales agent is representing the interests of the builder.
\nIt\u2019s often best for you to work with your own real estate agent<\/a>, who will represent you and your interests throughout the buying process. As with any home purchase, always do your research to find an agent with experience in the type of property and location you\u2019re interested in \u2014 in this case, new construction homes.<\/p>\n

#2. Understand the Offer Process<\/h3>\n

While similar, the offer process<\/a> for a new construction home isn\u2019t the same as a pre-owned home. You will still have your real estate agent<\/a> write up the paperwork on your behalf \u2014 and it will include basics like who\u2019s buying, who\u2019s selling, how much are you offering, and other standard items \u2014 but your negotiation may look different.
\nA builder usually has standard pricing for properties in the development, so it\u2019s more likely that you’ll negotiate on upgrades and additions rather than on the price of the house. This is another excellent reason to ensure you have a real estate agent experienced in transactions on new construction homes to help you.<\/p>\n

#3. Plan Ahead for Taxes<\/h3>\n

No matter what kind of home you purchase, you\u2019ll be responsible for property taxes. However, with a new construction home, the property taxes you pay in the first year will likely be lower than in future years. That\u2019s because your county will base the first year of taxes on the assessed value<\/a> of the land and then on the value of the land and finished home, thereafter.
\nYour mortgage lender will work property tax costs into your monthly payment calculations<\/a> \u2014 but it\u2019s a good idea to understand what they will be. Your real estate agent and mortgage lender can help you estimate based on historical data of similar properties.<\/p>\n

#4. Ask About the Builder\u2019s Warranty<\/h3>\n

When you buy a new construction home, builders often offer a warranty covering the home\u2019s materials and workmanship, which you should request in writing. It can last anywhere from six months to two years, depending on the agreement. It will typically include carpentry, insulation, roofing and siding, windows and doors, plumbing, electrical, paint, the heating and cooling system, and other significant items.
\nUnlike a home warranty that buyers purchase on pre-owned homes, a builder\u2019s warranty generally doesn\u2019t cover appliances. Although, new appliances, whether purchased or included with the home, will come with their own manufacturer warranty. Your real estate agent can advise on whether or not an additional home warranty might be required.<\/p>\n

#5. Shop Your Mortgage<\/h3>\n

Builders and developers have made it increasingly easy to purchase a new construction home using their in-house services \u2014 including their lender. Just keep in mind that the mortgage<\/a> terms offered by the builder\u2019s lender may not be the best for your unique situation.
\nShop your mortgage<\/a> with a handful of places to ensure you\u2019re getting the rate and terms that best suit your needs. Not all lenders offer new construction home loans, but your real estate agent should be able to refer you to those that can.<\/p>\n

#6. Decide on a Production Builder or Custom Home Builder<\/h3>\n

As you dig into your search for a new construction home, you\u2019ll likely come across the terms \u201cproduction builder\u201d and \u201ccustom home builder.\u201d A production builder typically offers the home and land as a package and allows buyers to select from various floorplans and materials.
\nWhereas, a custom home builder offers more customized homes, meaning you may be able to choose your land<\/a> separately, draw a unique floorplan, or select materials within your budget.
\nBoth are great options. Your choice will likely come down to your timeline (custom homes can take much longer than a production build), your budget,<\/a> and how much input and creativity you want to have in the process.<\/p>\n

#7. Research the Developer and Builder<\/h3>\n

When considering new construction homes, always look into the developer and builders. Knowing the track record of who is building the home can give buyers a great perspective on what to expect.
\nHit the web and search for reviews, testimonials, and pictures from past projects. You can also interview the builder or developer and tour their model homes to gauge their workmanship and style.<\/p>\n

#8. Don\u2019t Skip the Inspection<\/h3>\n

Just because a home is new doesn\u2019t mean you can skip the home inspection.<\/a> As with a traditional home purchase, an inspection is a great way to uncover any hidden issues<\/a> that might come up in the future. In most cases, the builder will be happy to make the repairs \u2014 whereas, in a traditional sale, you may negotiate a lower purchase price to accommodate for future repairs.
\nYour real estate agent can refer you to home inspectors in your area and add an inspection contingency to your offer paperwork<\/a>.<\/p>\n

Searching for New Construction Homes<\/h3>\n

Purchasing a new build can be a rewarding experience and doesn\u2019t have to be complicated. Keep these tips in mind as you start navigating your search. If you\u2019re interested in new construction homes, you can customize your search from thousands of the latest listings, here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

New construction homes are exactly that \u2014 new. Popular with today\u2019s home buyers, new builds offer customization options that simply don\u2019t exist with a pre-owned home without remodeling or renovation. In fact, in January 2021 alone, 923,000 new homes sold in the United States. Whether you\u2019re considering a new build because you want a truly new home or a property built to the latest quality standards, there are many great reasons to choose a new construction home. Here are a few tips that will keep you ahead of the curve as you start your search. #1. Find a Licensed Real […]<\/p>\n","protected":false},"author":3,"featured_media":49887,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[223],"tags":[80,49,79,130,53,83],"class_list":["post-49885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying","tag-buyer-tips","tag-buying-a-home","tag-homes-for-sale","tag-new-construction-homes","tag-real-estate","tag-real-estate-tips","post--single"],"yoast_head":"\n8 Tips When Shopping New Construction Homes<\/title>\n<meta name=\"description\" content=\"If you\u2019re shopping for new construction homes, here is a list of best practices to streamline the buying process.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.movoto.com\/blog\/8-tips-when-shopping-new-construction-homes\/\" \/>\n<meta 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