There are a few things you need to consider when you’ve decided to own a newly constructed home. Homebuyers have to understand that purchasing new construction homes for sale is quite different from buying an existing house.
Are you wondering if a new construction home is for you? Or rather you’ve made up your mind, and you are seriously on the verge of making a purchase.
Regardless of your social or economic status in the country, these few tips will probably save you some stress.
1. Newly constructed homes may not yet be listed in your local MLS
If you are new to this, you are probably wondering what MLS is. The MLS is a large, private database of home listings that enables real estate brokers to connect clients with homes for sale and prospective buyers.
Most home builders and developers employ private sales employees that work for them on site. Whilst a regular seller would most likely list their home with a local real estate agent; this may not be the case with your home builder. The homebuilder would probably have ads running in papers and billboards as a means of advertisement.
If your home builder doesn’t have any affiliation with the local MLS, then it is up to you to work with your agent to identify and find possibilities you may have missed. This is a very important step you have to take, so you don’t miss out on any better opportunities.
2. Newly constructed homes are a lot of times sold before they are built.
Buying a home is a major commitment, so is building one. Usually, a typical builder takes their time to map out the construction and sales process for their projects as early on as they can. They will try to sell as much of their homes before they are even constructed. Model homes and three-dimensional mockups are used to demonstrate to the potential buyer how the finished product will look. With these, they can acquire quite a lot of sales upfront before actual construction begins.
Also, builders may have more homes in the community that are available at the time. In your search, you should try to stay abreast of the different sale cycles to catch the best deals.
Early buyers usually get better discounts
Most times, when home builders put up new construction homes for sale, they want to get a few houses under contract as early as they can. To them, it is very beneficial to be able to announce to other potential buyers that they got a couple of their homes under contract. In a few months, no less. The builders can also report progress to their investors based on these initial sales.
A buyer can usually take advantage of this to negotiate better prices and rates. However, there is a potential risk attached to this. You are inadvertently committed to the project when you buy early. You will be exposed to the risks when sales don’t manifest.
Builders have no personal attachment to the home
Generally, home builders are not usually the sentimental type. They mostly do not negotiate their listed prices. This is because the prices listed are usually a gross calculation of the costs it took to construct the building. You must understand that they are running a business, and accounts have to be balanced.
Discounts may come in the form of upgrades
When a project is nearing the end of its sale cycle with a lot of deals closed already you may find a bit of wiggle room. The builder may not be willing to negotiate a price change but may allow a bit of change in the name of incentives and upgrades. These upgrades can end up being worth a substantial amount even way more than getting an actual price discount.
Buying a newly constructed home is a great idea. Usually, working with a great agent should smoothen all the obvious problems you may face down the line. Good luck!