Dos and Don’ts of Buying New Construction

Purchasing a newly constructed home can be an exciting experience, offering modern amenities and the opportunity to be the first owner. However, it’s essential to navigate this process carefully to ensure you make the best decision. Here are some key dos and don’ts to keep in mind when buying new construction.

Do:

Hire a real estate agent

Even though you’re dealing directly with a builder, having a real estate agent by your side is crucial. An experienced REALTOR® can help you navigate the process, negotiate on your behalf, and protect your interests throughout the transaction.

Research the builder

Before committing to a new construction home, thoroughly research the builder’s reputation and track record. Look for online reviews, visit their completed projects, and speak with current homeowners in their developments to gauge satisfaction levels.

Get a home inspection

Don’t assume that a brand-new home is free of defects. Hire a professional inspector to examine the property during various stages of construction and before closing. This can help identify any issues early on and ensure they’re addressed by the builder.

Read the fine print

Carefully review all contracts and warranties. Pay attention to what’s included in the base price and what’s considered an upgrade. Understanding these details can help you avoid unexpected costs and restrictions.

Consider future value

When selecting upgrades and customizations, focus on structural improvements and features that will add long-term value to your home. Some people may want to consider the resale potential and how their choices might appeal to future buyers.

Don’t:

Assume everything is negotiable

While there may be room for negotiation on certain aspects, don’t expect the builder to slash prices dramatically. Instead, focus on negotiating upgrades, closing costs, or other incentives that can add value to your purchase.

Overlook the neighbourhood

New construction often takes place in developing areas. Consider the location carefully, including future plans for the neighbourhood, potential commute times, and nearby amenities. Remember that young trees and empty lots will take time to mature and develop.

Skip the warranty review

Carefully examine the builder’s warranty and understand what it covers and for how long. Be aware of any limitations and procedures for filing claims. Consider purchasing additional warranty coverage if necessary.

Forget to budget for extras

Remember that many new construction homes don’t come with everything you might expect. Budget for items like landscaping, window treatments, and additional storage solutions that may not be included in the base price.

Waive contingencies

Even with new construction, it’s important to include contingencies in your contract for factors such as financing, appraisal, and inspection. These protect you in case unexpected issues arise during the process.

Final Thoughts: Navigating New Beginnings

By following these dos and don’ts, you’ll be better prepared to navigate the exciting journey of buying a new construction home. Remember, while the allure of a brand-new house is strong, it’s crucial to approach the process with diligence and care to ensure you’re making a sound investment in your future.

Looking to buy, sell, or invest? As your REALTOR®, I’ll guide you every step of the way. Contact me today and let’s turn your real estate dreams into reality!

For more information, contact:

Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca