6 Mistakes to Avoid When Buying a New-Construction House
- See more at: http://www.trulia.com/blog/6-mistakes-to-avoid-when-buying-a-new-construction-house/#sthash.5KPXi009.dpuf |
| Don’t get so caught up in your love affair with
your soon-to-be completed house that you forget about the things you really
need to focus on. |
Heed these 6 tips when buying a new
home to avoid problems down the road.
It’s
exciting to build a home from the ground up. There are fun choices to be made,
from selecting the hardwood floors for the dining room to choosing between
subway tiles or penny tiles for your kitchen backsplash. But don’t get so
caught up in your love affair with your soon-to-be completed house that you
forget about the things you really need to focus on.
“The key
with new construction is really making sure you have the home inspected and
follow up that the builder remedies the problems,” explains Keith Thompson, a
real estate broker with Berkshire Hathaway HomeServices Carolinas Realty in
Charlotte, NC. But there’s much more. Heed these tips when buying a
new-construction home and avoid major issues down the road.
1. Hire a real estate agent
Oftentimes,
buyers don’t feel a real estate agent is necessary when building a new home.
After all, there’s a sales agent on-site to assist you with your questions,
right? Wrong.
“Many people
figure that they do not need the help of a Realtor,” says Ali Johnson, a
Florida-licensed real estate agent who specializes in new construction and
gated communities in Venice, FL. “They feel they can handle it themselves, and
that they have a sales representative working for them in the new community
that takes care of and explains everything, including the paperwork. That
person works for the seller, though. They represent the developer’s interests.”
A real
estate agent will work on your behalf — and because the builder pays their
commission, it costs you nothing to have someone represent you during the
new-construction process.
2. Do your research
The same way
you may research a new car is exactly how you should look into a builder. “Make
sure they have a good standing with your state’s Construction Contractor’s
Board, and that there are no pending complaints or judgments against him or
her,” advises Patty Brockman, a licensed real estate broker at Windermere
Stellar Real Estate in Portland, OR. “Ask questions about whether they use
independent subcontractors, and verify their licenses and bonds as well. Always
know the amount and kind of insurance they carry, as well as the amount of
their bond.”
3. Read the fine print
Many
builders use purchase contracts that are much different from state-issued real
estate agent documents. “Be sure to read these contracts carefully and have an
attorney and your Realtor review them before signing anything,” says Brockman.
“Builders’ contracts pretty much only protect the building company, not the
buyer, so make sure your Realtor writes addendums that keep you protected
during each phase of the purchase.” Also, make sure you review all of the
warranties so you know what is covered, and what is not.
4. Ask what’s included
“A lot of
buyers have a ‘what you see is what you get’ attitude when it comes to building
a new home and looking at the model home,” explains Kristin Magnani, an
associate broker with Rutenberg, a real estate brokerage firm in New York City.
Model homes
are decked out with all the bells and whistles, explains Magnani, including
high-end light fixtures, appliances, trim work, architectural detailing, and
more. Avoid assumption and ask questions about every add-on or, better yet, ask
the sales agent for a complete list of the extras in the model unit such as
extra can lights, heights of doors, tinted windows (found mainly in high-rise
apartments), and more.
“Does the
house come with appliances? Window coverings? AC? Landscaping in the front and
backyards? Automatic garage door openers? Sprinkler system?” says Brockman.
“Always list in detail anything that you expect, if it is not expressly
disclosed in the contract.”
5. Get inspected
Home
inspections aren’t just for previously built homes. In fact, the majority of
real estate agents will recommend that you have the home inspected not only
after it’s completed but also before drywall is installed.
“As the
housing market has heated up, the pace of construction has also increased,”
explains Keith Thompson. “Overworked subcontractors and city or county
inspectors are human and can and do make mistakes when they have too much on
their plate.” Avoid things such as uneven walls or electrical or cable outlets
in unfortunate locations (e.g., 4 feet to the left of where your TV is supposed
to hang) by having pre-drywall inspections.
6. Do a walk-through
After an
inspection, it’s critical to do a walk-through with the builder. It’s during
this time that you can point out major cosmetic issues (such as nail pops or
chips in cabinetry) or any other major issues, such as missing landscaping that
was included in your contract.
“Never close
on a new-construction house without doing a final walk-through to ensure that
all of the punch-list items have been completed to your satisfaction,”
recommends Brockman. “The last thing you want after you move in is a bunch of
contractors doing touch-ups and finish work while you are trying to enjoy your
new house.” Plus, if you don’t address it before closing, you may have a hard
time getting the builder to fix anything once the home is officially yours.
written by Blake
Miller
Blake Miller
Blake Miller
is a Charlotte-based freelance writer. The self-described wannabe foodie and
fitness freak has covered travel, interior design, and health and fitness for
US Airways Magazine, Redbook, Self, ElleDecor.com, Four Seasons Magazine, and
Women’s Health, among other national and regional publications.
No comments:
Post a Comment