10 Tips On Purchasing A New Home
The process of purchasing a home can be quite easy or overwhelming, depending on your preparation and the information you’re able to obtain. Your first new home purchase decision is to find out what type of builder will best fit your needs. Your conditions may include anything from location, price, community standards, and workmanship to post-closing issues such as builder warranties. The following are overviews of 10 topics to consider while purchasing a new home. This information should enable you to ask the right questions and get you one step closer to purchasing your new home with confidence and ease.
- Builder Types
Production Builders – These builders generally have a number of plans per community and with different elevations. With this type of construction, many homes are usually being built at the same time, allowing for standing inventory and quicker closings.
Custom Builders – These builders generally build to customer specifications. This type of construction usually does not start until a contract is written and accepted. Most national builders are a combination of both types. When visiting a home site, you might see standing inventory, homes under construction, and parcels of land cleared for future home sites. During any of these phases, a contract can be written and specifications requested within the framework of a specific builder. Building a home can take anywhere from 3 to 9 months or beyond in some cases.
- Registration Process
In most cases, when you enter the sales office on site, you will be asked to fill out some type of registration card. REGISTER, REGISTER, REGISTER! During the registration process, it’s important to inform the on-site agent that you’re working with Buildwick Realty. You MUST register Buildwick Realty to receive your 1.5% cash back rebate. (This also provides our contact information and allows the agents in the office to manage your service experience eliminating any confusion in the communication process).
- On-site Agent
THEY REPRESENT THE SELLER! Many people who buy new homes believe that the on-site agent is representing them, but when it comes down to it, the on-site agent is representing the builder ONLY.
- Availability of Options & Incentives
Options should be considered in two ways:
Structural – Structural options include additions and deletions involving rooms, walls, windows, layouts, and so on.
Interior/Exterior – The offered options could include flooring, cabinets, countertops, landscaping, fences, color schemes, etc.
When you walk into a sales office and are shown a nicely decorated model home, make sure to ask what the standard features are and what is considered an upgrade. Many of the available options depend on the stage of construction of the home. Always ask and confirm what is and is not available to you while previewing homes with the on-site agent. During the process, the true base price of the home will be revealed to you!
Builders will often provide incentives to buyers to purchase through the builder’s lending tree. These incentives can include full or partial payment of closing costs, upgrade allowances, appliances, or payment of HOA initiation fees.
- Pre-Approval Lending Process
Before searching for a new home, it’s a good idea to be pre-approved or pre-qualified. What’s the difference?
Pre-qualification letter – based on verbal and preliminary checks that helps to determine the purchasing power of the buyer.
Pre-approval letter – based on extensive verbal and factual confirmations regarding the purchasing power of the buyer. The lender is actually committing its resources to your deal.
Why have an approval letter? – This will help to narrow your search and at times can even be used as leverage in your decision of what lender to use.
If you haven’t been pre-approved or pre-qualified, the process can be started with the builder’s on-site agent. This might involve a short waiting period before a contract can be signed and ratified.
- Builder Contracts
Sales and Purchase contracts provided by most builders are generally standard documents. As with any contract, it is important to carefully read and understand your rights and restrictions or seek counsel if you feel it is necessary.
- Home Owner Associations
Many communities have Home Owner Associations (HOA). HOAs help to maintain the look and feel of the neighborhood and support the services offered, which are structured on a per community basis. At some point during the buying process a copy of the HOA bylaws should be made available to you.
- Closing on your home
The closing attorneys involved are typically affiliated with your particular builder. Closings usually go smoothly because many issues that arise during traditional real estate transactions are not a factor in transactions involving a new home. That’s not to say that things will not come up, but if you have done your part as the purchaser, the path is pretty smooth.
The warranties provided by builders cover post-closing items that may or may not occur during the covered lifetime of your home. Most builders extend a 2/10-year warranty, which covers major systems and appliances/structural. The process, items covered, and duration will differ from builder to builder.
- How does our program benefit you?
To help answer the question, we’ve listed the top responses from customers about our program!!
The question we asked:
Based on your experience with our program, what would you tell customers they are able to receive using Buildwick Realty’s New Home Purchase Program?
200K 300K 500K 1 million
Cash Back Cash Back Cash Back Cash Back
$3,000 $4,500 $7,500 $15,000
- You receive 1.5% cash back in your pocket off the base purchase price!
- You can use the 1.5% to help with the first few months of mortgage payments!
- You can use the 1.5% to help pay for furniture or furniture treatments!
- You can use the 1.5% to help build a fence!
- You can use the 1.5% to help buy that new flat screen you’ve always wanted!
- You can use the 1.5% to purchase window treatments!
- You can use the 1.5% for a pool table for the game room!
- You can use the 1.5% for flowers/plants for your new landscape!
- You can put the 1.5% toward that vacation you’ve been planning!
- You can use the 1.5% to help with or even pay for your moving expenses!