Tips For Buying A New Construction Home

by Fireside Realty Group 05/26/2019

For the most part, it’s safe to say we all know to come prepared when buying an older home. But did you know that the buying process of a new construction home comes with its own quirks? The customization and relationship with the builder through the process makes for a unique experience when buying a new construction home.

Here’s what you need to know:

Some developments have site registration policies. This means that they require you to come with your agent for at least the first couple visits. Don’t be caught off guard. When planning your viewings be prepared to work with your agent's schedule as well as your own.

Instead of asking to lower the cost ask when negotiating ask the builder to pay closing costs or to include upgrades. You’ll have an easier time getting a yes to these requests as builders don’t like to lower costs and gain a reputation for doing so in the process.

New construction homes aren’t a final product when purchasing. Because of this, it’s critical to get details on paper to protect yourself during the buying process. Details to include are how the home will be finished, any and all timelines, and what will happen if, for whatever reason, the home is not finished in time. Get all of this in writing to create a binding contract.

Ask questions! When touring the model house be sure to ask what comes standard and what is an upgrade. Get costs of upgrades that catch your eye so that you can plan your budget. When planning this budget you will also want to leave wiggle room as this will be a quote and not final cost. Your agent can help you create a list of common features that are standard and/or upgradable as well as ballpark costs.

Budget Tip: When deciding on upgrades know which are easier to have done during construction. Prioritize those over those that can easily be done after. Think upgrades that include wiring or getting into walls and ceiling for whatever reason.

New construction homes often come with a warranty. It’s important to know what this covers and what it doesn’t. Understand your cancellation rights and hire a real estate lawyer to review contracts and any important documents.  

Research the builder and if possible talk to other residents in the neighborhood. Ask them about their experience both during the buying process and living in the development afterward.

One thing that often catches home buyers off guard is when the builder requires you to get pre-approved by their lender even if you use your own lender. This is to safeguard themselves by ensuring you pass their lenders requirements for a safe investment. It’s also important to keep in mind that you may even get better rates and fees from the builder's lender.

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Fireside Realty Group

The Fireside Promise

5-Star Customer Experiences

We don’t just talk about it. We are about it.

The number one promise at Fireside Realty Group is to always put our client and their needs first. For this reason, providing expert service during every step of the real estate process is nonnegotiable and is something our clients can expect. Our expert staff manages every part of the transaction – Sales, Staging, Photography, Contract-to-Close, Listing Management and Marketing, Technology and Systems, Mortgage Lender Referrals, and Make-Ready Services – to ensure our client’s have a 5-Star Experience. 

How is this different?

Traditional brokerages have little or no concern with the client (buyer/seller) and leave it 100% up to their self-employed real estate agent to deliver the knowledge and service (or lack thereof). This means there is no consistent quality or standard of care and limited service by virtue of the capacity of a single agent. All of this can be risky for the customer. 

Real Estate Specialization & Expertise

Being a “jack of all trades” is a thing of the past.

Mediocrity is not an option at Fireside Realty Group, which is why our agents have areas of specialization and work as experts in their specialty. This means that every Fireside client will work with a real estate professional who has the knowledge and expertise to tend to their specific real estate concerns. You wouldn’t go to a cardiologist to solve a problem with your foot – you would go to a podiatrist! So for instance, why buy a mountain investment property from a typical agent who owns no mountain investment property? 

How is this different?

At Fireside you work with a team of expert agents who are trained to help with a variety of specific real estate needs. If you have a need that isn’t a fit for the agent you are currently working with, we will gladly refer you to another expert, or even outside the company if that is the best course of action…which is not the case in most brokerages.

Technology Delivered

It’s not just a shiny penny!

We invest in and use technology to ensure that Fireside Realty Group operations makes good on our promise of a 5-Star Experience. We have carefully tested and filtered out the gimmicks from the tools that really work. ALL agents are trained to use our technologies, tools, and systems in order to deliver the level of service that is required.

How is this different?

Other brokerages leave technology choices up to their agents. What this means is a lack of consistency because each agent uses a different system and operates based on their own individual preferences. We think you and your home or investment are too important to leave it up to a lone ranger agent and whatever tools they have at hand. 

Our Leaders = Practitioners

We Practice What We Preach.

All Fireside agents have personally purchased and sold at least five homes, so they have first-hand knowledge of the client-side experience. This has shed light on areas in which the real estate experience was lacking and needed improvement. Our leaders have taken that learning and built a solid foundation for Fireside in which they continue to work in and improve all facets of the company including sales, contract-to-close and client responses in order to truly understand . 

How is this different?

Other real estate companies are filled with sales managers and leaders who are full of good intentions but have no experience working with the buying/selling customer, or whose experience is no longer relevant in today’s market. In these companies, the systems, tools, and advice for customers comes from theory or outdated practices.