Buying New Home Construction - Tips For Buying a Home You Can't Afford
When buying a new home, it's easy to get wrapped up in the excitement of it all - the potential new location, new floor plan, new kitchen, etc. - and overlook a vital aspect of the process: negotiating. Homeowners typically hire an agent when buying a new house, but it's important to remember that you will have the opportunity to shop for and negotiate virtually everything about your new house, from the layout and construction to the features and finishes, view here for more. Here are five negotiation tips to keep in mind:
Bargain Over Accessories: Whether you choose to have a builder create custom finishes and fixtures for your new home or negotiate for state-of-the-art fixtures and appliances, remember that the kitchen and bath are where you'll make the biggest concession. Buyers often negotiate for new cabinets, countertops, appliances and faucets in the kitchen. Your real estate agent can assist you with these extra perks, upgrades, and features, too, but first you should sit down with your builder to discuss the layout and options available for your new space.
Meet with a Lender before Construction Starts: You may not need to discuss financing during the construction of your new home, but you should still meet with your lender and understand the terms of your loan. Your lender will require a credit report and approval of your application, which means having your financials in order before construction begins. Your lender may also request that you submit pre-approved offers on your new construction project. Before your lender gives you the go-ahead to proceed, however, the least they can do is approve your application if you pass their credit check, so it's important to make sure this is happening before construction begins. Remember, when buying new construction, the lender is in the business of lending money; they aren't in the business of being your contractor.
Meet With a Real Estate Agent before Committing: Your real estate agent is your first line of defense when negotiating price and terms with your builder. Your agent may also have connections and insight into finding contractors for your project who are experienced and have a good reputation. When you meet with your agent, bring your plan along with your builder's plan, pricing sheet, and other pertinent information. If you don't feel comfortable with the information your real estate agent is presenting, find another professional.
Have a Plan in Place Prior to Construction Starts: Your lender and builder probably understand the timeline of your new home construction. But your new home builder may not be well informed about what all the terms will be once construction has started. It's important to know this information well in advance to avoid surprises once the shovel has fallen. This can be one of the most difficult parts of buying a new home construction, also check this link. Once the dust settles, it can be extremely costly if the unexpected comes up.
While there are certainly risks involved when buying new home construction, the risks are compounded by the fact that most builders are well-intentioned. They want your dream home. Your job as the buyer is to find a builder with the right experience, qualifications, and connections who'll build it right. Read more at https://www.britannica.com/topic/real-estate-agent.