With low inventory across markets, new construction can be a great option for buyers. But unlike a re-sale home, the process does have its differences – just ask our clients who right now are building out in Roxborough! As with any situation where you’re moving and about to spend a lot of hard-earned money, it’s important to go in prepared – and that means asking the right questions.
The first interaction you’ll have with the builder – and often, the first several – will be with the builder’s sales representative. These early meetings are prime time to ask all of the questions you might have in terms of costs, labor, and other essentials that you need to know about before jumping in. Write your questions down before you go in so that you can be sure not to forget anything important, so don’t be shy!
Not sure exactly what you need to be asking about? These 10 questions to ask when buying a new construction home will help get you started:
1. Is the lot cost included?
When you’re exploring new construction options, you’ll see that each plan comes with a base cost. This is the cost of the structure itself, as well as base interior and exterior features (we’ll get into those in a little bit). What may not be included is the cost of the land, so be sure to ask if the lot cost (also known as the lot premium) is figured into the base.
If the lot cost is included, ask if there are different costs for certain lots. It’s possible that the base cost does include the lot, but the remaining lots in the development all have added costs for certain features that you can’t opt out of, such as doors for a walk-out basement or wider yards. If the lot cost is not included, ask what it is and factor those into the base price for the house.
2. How long will construction take?
It’s important to know what you’re getting into timing-wise with a new construction home, particularly if you have a house to sell first or a lease to consider. While the building process is prone to delays and you won’t be able to get a finite schedule for how long the build will take, you’ll be able to get a general idea of what you can expect.
3. What warranties are provided with the house?
Does your base cost look too good to be true? That might be because the builder is expecting you to spend big when it comes to finishes like flooring, backsplashes and countertops. Ask what types of finishes are included, and better yet, when you and your agent go through the model unit, have the builder’s sales representative and have them point out what’s standard and what’s an upgrade. You likely won’t meet with the design center until after you’ve gone under contract, so it’s important to figure out early what sorts of finishes and appliances you can expect to be included in the home’s base price.
4. What are the standard finishes?
Does your base cost look too good to be true? That might be because the builder is expecting you to spend big when it comes to finishes like flooring, backsplashes and countertops. Ask what types of finishes are included, and better yet, when you and your agent go through the model unit, have the builder’s sales representative and have them point out what’s standard and what’s an upgrade. You likely won’t meet with the design center until after you’ve gone under contract, so it’s important to figure out early what sorts of finishes and appliances you can expect to be included in the home’s base price.
5. Are appliances included?
On so many occasions, we’ve walked new builds with clients and seen what would be their absolute dream kitchen…until we find out that their own home would have no fridge, or no stove, no microwave, or even no washer and dryer! While your appliances can of course be installed post-settlement (or maybe negotiated on if you have yourself a solid agent 😉), save yourself the shock by asking ahead if the builders plan to include them.
6. Are there any homeowners rules or regulations?
Even if there is no homeowners association for the development, the builder may still set some guidelines as far as what’s allowed and what’s not on your property. For example, you may not be able to use a particular type of fencing (we see you, pet owners!) or install a shed in your backyard. In our Roxborough sale, the buyers were majorly concerned about having trash can storage alongside the home (while it’s not something everyone remembers to ask on, their last place was set up in a way where they’d have to bring their huge garbage toters through the kitchen each week, a fate they rightfully wanted to avoid this time around!). It’s better to ask these question early and know what to expect than to move in and find out that you can’t bring into fruition certain plans you had for the space.
7. Are there any financial incentives for using the builder’s preferred lender?
Some builders offer discounts on closing costs if you obtain your mortgage through a company that they have a relationship with. Ask if these sorts of financial incentives are offered, but don’t make your final decision about where to get your mortgage based on the discounts alone – you may still be able to find a better deal through other lenders, and should definitely ask your agent for a recommendation!
If it’s your dream to build a new construction home, go into the process with an open mind and a clear idea of what you can expect. The more questions you can ask in the beginning, the fewer surprises you’ll potentially face in the future!
