Whether you are actively house hunting or simply dreaming of your next move, you may have considered a brand new home…
New construction has it’s advantages. You are the first owner, everything is up-to-date, and you sometimes even have a say in how things are built – just to name a few. But before you take your first step and start touring new builds, know that the purchase process might look a little different than that of a resale property. Let’s take a quick dive into the most important things you should to know, so when you fall in love with that shiny new home, you’ll be ready to go under contract.
What should I consider before going under contract on a new home?
Working with an experienced REALTOR® is step number one. An experienced REALTOR® will guide you through the home buying process, provide background information on various builders, and can advise you appropriately. Your REALTOR® will discuss the following with you:
It’s good to know that just because a home is new does not mean it’s perfect. It was built by humans, and humans make mistakes! It’s always advisable to have a home inspection done even on new construction. Find out where any mistakes were made. A reputable builder will work to correct them prior to closing.
A second thing to understand about new construction is that they do not always close on time. New homes are susceptible to delays due to many factors: contractors, subs, supplies, weather, scheduling, etc. Any and all of these can cause delays, and new construction contracts widely protect the builder in this scenario. It’s important to understand that the closing date on the contract is a goal, but it’s not set in stone. Being able to maintain flexibility in the event that delays occur is important. If a buyer is on a strict timeline, new construction may not be the right fit. This is a conversation to have with your real estate agent.
The third item to understand about new construction is that builder warranties are not all the same. It’s important to ask for warranty information prior to going under contract, so that you know exactly what to expect and what is/is not covered under warranty.
Lastly, some builders offer more incentives than others and include items in homes that other builders don’t. Things like fences, blinds, refrigerators, garage door openers, etc. are not always a standard inclusion. Buyers must understand what is/isn’t included in the home so they can budget for these additional costs appropriately.
What does new development in my area mean for the property value of my current home?
New construction happens in areas that are desirable for home buyers. Desire establishes and upholds value. Therefore, property values in areas that are seeing growth, new construction, and new developments are going to remain strong. That being said, in the short term, sometimes if a Seller lives in a subdivision that still consists of a lot of new construction, it can be harder to compete as a resale home. It’s important to discuss your property with an experienced REALTOR® who can work with you to showcase the very best features of your home and all it has to offer, price and market it appropriately, and guide you through the selling process.
What does new development mean for the future of the our area?
Our county planners need to be wise with their vision for infrastructure. We need to allocate taxes appropriately and work with developers to make sure that as we’re growing, we have the infrastructure to support it. Having conversations with our local commissioners and representatives is imperative during a period of rapid growth. When communities grow, it means our schools are also growing, and listening to the needs of local school districts is also important.
Where can I find more information about new developments in my area of Central Texas?
Call your friendly REALTORS® at CENTURY 21 Bill Bartlett!
