4 Things To Do When Buying New Construction

Feb 23, 2017

There is a certain allure to buying a newly constructed property. Homebuyers get to move into a home they customized to fit their needs and tastes with brand new appliances and damage-free surfaces. Purchasing new construction is seemingly simple; one just has to choose the floor plan and finishes and wait for the finished product. Actually, it is a far more complex process.

For buyers who want the best deals, working with an experienced South Florida real estate professional is critical. Below are other things buyers should do to ensure their new construction purchase goes smoothly.

1. Find a Reputable Builder

Since the builder will be responsible for constructing the buyer’s dream home, it is important to choose one that is trustworthy and has a proven track record of successful projects. Buyers can request the builder they are considering to connect them with past clients. However, builders will only provide favorable references, and that is when a real estate professional comes in. An agent can use his experience, consult with his colleagues, and locate a wider range of past clients to find a reputable builder. After these background checks are completed, buyers will have a clearer idea of a builder’s reputation, quality of workmanship, warranty offerings, and skill at resolving issues and satisfying customers.

2. Navigate the Purchasing Timeline

The basic steps in the timeline for purchasing new construction include: the visit to a sales center where a floor plan and plot are chosen, the construction of the house, the required inspections, and finally the closing of the sale. However, multiple issues can arise as a project moves toward completion such as construction delays, permit issues, and problems with financing. Additionally, the contract for new construction is significantly different from a contract for an existing home. A real estate expert can help guide buyers through those types of problematic situations and review their contracts to ensure their clients are protected and their interests are accommodated.

3. Negotiate Price

Indirectly Builders are reluctant to negotiate a home’s sale price because they do not want to set a precedent for future buyers. Fortunately, there are multiple ways buyers can reduce the costs of buying new construction through indirect negotiation methods. Having an agent representing the buyer’s interests is beneficial because they will know the areas where those specific builders are most willing to bend. Many builders offer financial incentives to buyers who use their preferred lender and title company, which can reduce a buyer’s purchasing costs substantially. Moreover, builders sometimes cut off thousands of dollars from closing costs or upgrade charges.

4. Choose Upgrades Wisely

Builders are prone to offering as many upgrades and finishes as they can to increase a property’s final sales price. With the help of a real estate expert, buyers must carefully choose which upgrades and finishes are most important for them. Builders will charge premium prices for certain options; oftentimes, hiring a separate contractor to install the finishes is cheaper. Buyers should consider having their home built with mainly standard finishes that they can replace later on.

If you are looking to have a property newly constructed for you, it is best to have a South Florida real estate professional by your side as soon as you visit a sales center. Call Stein Posner today to find out how we can guide you to your dream home.