New Construction Advice

[whiskeytails]

Coming into this weekend, we had a potential buyer that we thought was really serious about submitting an official offer--as he was negotiating verbally through our realtors. So we decided it was probably time to look at some houses, ourselves, since this guy was talking about closing at the end of the month.

I found a house I love... a new construction. While the size of the lot could be bigger, the inside of the house really makes up for it to me. I am willing to compromise. Plus our realtor said we can negotiate with the builder about adding appliances, patio, driveway and a fence--which could then all be financed. This of course is nice, because I'd prefer to have extra cash on hand to eventually finish the basement.

What do I need to know about new construction that I didn't necessarily think about the first time we bought a house? 

[whiskeytails]

Thanks, I have a friend who works at the local Home Builders Assoc. I will see what she knows.

[mcfelix]

Full disclosure - I have worked for a few different builders in my career, so I am definitely in favor of new construction! Between DH and me, we've owned 5 new homes. A few things I'll point out:
- I would make absolutely sure you know and understand what is included in their base price, and what the options are. Also understand any cut of periods for making or changing your selections
- Anything they've promised you needs to be in the contract. Period. They said they include a tray ceiling in the dining room? Only if it is in the contract, otherwise they have no obligation to include it, even if they told you otherwise.
- Make sure you understand what is in the surrounding area - immediately surrounding your lot and also the community
- What is the grading of your lot? Have them explain the grading and water drainage. The site should be designed so that water flows away from your house. Have them point out where any swales are, because that's where water will be running during heavy rains
- What is their warranty? How are warranty requests handled? Who do you contact when you have an issue?
- Make sure you understand the HOA fees. What do they cover? Has the HOA been turned over to the homeowner's or does the developer currently run it? Do they anticipate fees increasing when it is turned over?

I could go on, and feel free to pm me, but these are just a few top of mind things I felt worthy of mentioning.

[whiskeytails]

Dec 9, 2014 13:44:36 GMT -5 mcfelix said:

I could go on, and feel free to pm me, but these are just a few top of mind things I felt worthy of mentioning.

Thank you! This was really helpful. I will definitely keep you in mind when we get this process going!