Five Things to Be Aware of When Buying a New Home
They are Everywhere! Just as one Location Fills Up, Another Opens! New Builds are the Live Action Versions of Every Pinterest Board we Have Loved and Saved and it is Easy to Fall in Love with the Dream of Owning that Perfect Dream Home, the Harsh Reality is that the Home Could be Yours, but the Price isn’t what is advertised on the large billboard on the corner.
New Home Builds are exciting and if you are looking for a NEW home that fits your families needs and is completely move in ready, then I highly recommend Building a Home. Just like anything, you need to do your research and talk to your trusted experts, REALTORS.
I could go on about what to expect and what to look out for, but my mission for you today is to talk about the 5 Things to be Aware of When Buying a New Home!
- There’s A Catch! It is no secret that the Models you walk through are upgraded to the Maximum Levels. Home Builders try to accommodate that by offering a Credit to help you design your dream home. The first thing to notice about these incentives is they usually come at a cost. More often then not the credit comes from using the Lender the Builder has a business relationship with. While I encourage you to use their Lender and see what they can offer you, I also encourage you to look outside that box. Talk to other Lenders, if someone else offers you a better deal let your Realtor know and we can negotiate your Upgrade Credit and use of a different Lender.
- Want to Watch Me Make $6,000 Disappear? Once you have negotiated your Lender and Get Your Credits for Upgrades, be aware that money will go FAST! Here is where they get you, those little items you thought wouldn’t be an upgrade, well they are. Custom Paint (Meaning not white), Flooring, COVERED PATIOS, etc. are all upgrades and they add up quickly. Resolution: Ask for an Upgrade Sheet from the Representative when you tour the home. You and your Realtor can highlight what upgrades you are interested in and once you are back with the Representative you can get a cost sheet of those upgrades.
- Starting at Mid $200s…Means Ending at High $200’s. When thinking about Buying a New Home plan out what you can afford! Upgrades, Lot Premiums, etc all get worked into your loan, but be aware that as they add up so does your monthly payment. House Poor is a term used to describe sinking all of your money into a home and then moving in with an empty bank account and fear of the first payment. Before you sign a contract know what your budget looks like and have an idea of the upgrades you can afford.
- Acountabili-Buddy! Now that your budget is set, the Contract is drafted up, Permits are Requested it’s time to design the interior of your home at the Design Center. You know that Phrase “A Kid in a Candy Shop”, this is the Adult Version of that. Develop an Accountability System for your Pocketbook: whether it is your partner or a trusted friend that can hold you to your budget and guide you through the temptations of chrome hardware or brushed nickel.
- Mark Your Calendars! Right now we are experiencing a longer time frame for home completion. A Couple of months ago we were estimating 5-7 Months, now we are looking closer to 7-9 months. The bigger the home, the more custom, the longer it is going to take. Keep that in mind as you are planning ahead! If a New Home is the avenue you want to go down then know your time-frame.
I don’t mean to cast a dark shadow over the idea of a New Home, They are a great option and I personally love them, but they are not something you jump into without looking and researching. The easiest way to purchase a new home, get the right credits owed to you, and still have money in your pockets is to take along your trusty Realtor. New Home Builds work with Realtors all of the time and the service is free to you as the Buyer, so why not bring in some insurance to protect your assets and your future home!
If you are looking to Buy a New Home, Don’t Be Scared, Be Informed! Give me a call and I will be able to answer all of your questions and together we can start touring the best homes the Valley has to offer!