Buying a new construction home is a great option for many buyers, particularly if they’re looking to have some control over the home’s final layout, finishes, and features.
But there are a lot of mistakes that can be made, both when buying a new construction home and during the building process — mistakes that can cost you a lot of money.
So what, exactly, are those mistakes, and, more importantly, how can you avoid them?
A recent article from realtor.com outlined some of the most common mistakes buyers make when purchasing a new construction property, including:
- Signing a deal without vetting the builder. When you buy a new construction home, you want to buy from a builder with a great reputation and a solid history of building safe, high-quality properties. But not all builders have that kind of reputation or history, and buying a home from one of those dealers can end up being a costly (and frustrating!) headache. Before you commit to buying a new construction home, make sure to vet the builder. Do your research, read through online reviews to see what past clients have to say about working with them, and check to see if they have a history of complaints and/or legal issues.
- Not considering potential delays. Buying an existing home and a new build are different processes. As the name implies, an existing home already exists, so once the deal is complete, you can generally move into your new home pretty quickly. But a new construction home has to actually be built. Homebuyers often underestimate how much time that will actually take, which can be a problem whether you’re leasing or selling your current place. Before you buy a new build, make sure to discuss timing with your builder. Ask for a realistic timeline as well as their insights into any potential slowdowns or delays; that way, you can plan about how to manage your current living situation accordingly.
- Thinking that changes and upgrades are part of the price. For many buyers, one of the main selling points of buying a new construction home is that they can customize the layout and features. But some mistakenly think that making changes and upgrades to the property are included in their home price, and end up going completely over their budget. When you’re talking about making any changes, additions, or upgrades to your build, make sure to talk to the builder about pricing and how much those changes, additions, or upgrades will add to your final cost, which can help you keep your budget on track and avoid upgrades you don’t actually want or need.