Purchasing a newly built home gives the buyer a great opportunity to customize their home and be the first person to live in their home. However the process of purchasing a new construction can be a little bit different, your buying from a builder with an inventory of similar homes to keep in mind and a profit margin to keep intact. Here are some of the things that you should consider when you're looking at new construction in King and Snohomish County.
1. Don't negotiate price
Often times builders have a neighborhood full of homes that are all similar or sometime the same. That means when they reduce the price on one of their homes that becomes the best comparison for another of their homes, the result: all of their homes lose value. That is why builders are reluctant or down right unwilling to drop the price of a home. the best way to get a deal on a new construction is to ask for concessions in the form of a "buyer bonus", closing costs or upgrades like granite, stainless steel, or fences.
2. Find out about registration
Most builders have some sort of buyer registration that needs to be done. Ask your Real Estate Agent how the registration works. A lot of builders require your agent to be present for the first showing or sometimes all of them so be sure that you follow these guidelines.
3. Read the contract
When you're purchasing a new construction home you will usually need to use a builder specific form that will include items that are not standard forms. You should always read through the builders forms and make sure you understand your obligations. For example in most cases upgrades are non refundable, that means if your loan fall through and you can't buy the home you're not getting that money back for the granite counters. Additionally there are other terms to be aware of, in some cases there will be a charge for each day past the closing date that you are unable to close and time lines that set when you need to make color and finish selections by. If you read the contract and you work with a good Real Estate Professional you should be able to avoid having unforeseen issues.
4. Find out what could slow down the process
The home is not complete yet and although the builder should have a planned completion date it may not be set in stone. Usually there are exceptions that allow the builder to extend the closing date for weather conditions or permits that might prevent them from completing the house on time. In the greater Seattle area something as simple as rain could prevent exterior painting for some time.
5. Know what you're buying
You may go into the model home and see that it looks great but that may not be the finish you get when all is said and done. Often times model homes have upgrades included in them that you may not get without paying extra. Find out what is included as a standard and what will cost you more.
6. Choose the right funding
Do some shopping around to find out who the right lender might be, it's always important to work with someone who can communicate well and close on time. On new construction in particular there may be special rebates or deals for working with the builders preferred lender so find out and compare the options that are available to you.
7. Tour the finished home
Once the home is finished try and set up an appointment to walk through the home with one of the builders representatives or with your Real Estate Agent and make sure that all of the finishes are done well. This will allow you to have everything taken care of before you move in.