How to Buy Newly Constructed Homes

Buying new construction usually means that you're buying into a new community. A new community is an excellent opportunity to start and build your own neighborhood traditions, taking a cue from the architects and planners. When you're interested in buying new construction, these suggestions offer helpful insight.

Difficulty: Challenging

Instructions

1. Visit the model home and keep in mind that they are designed to entice consumers to purchase their homes. Look past the professional decor and focus on the features that are important to you.

2. Notice the quality of the work, particularly finishing details. Inspect corners, right angles and moldings. Try doors and open drawers to ensure the quality. Check inside closets and cabinets, note the amenities and use of space.

3. Inquire about the make and model of all appliances, and the manufacturer of various components, such as windows, plumbing fixtures and the HVAC system.

4. Make sure you understand what is included in the basic package and what is considered an upgrade at an additional cost. Calculate the cost and figure out the monthly mortgage payment.

5. Ask your builder to help by paying some of the closing costs or points on the loan. A builder has the ability to make a referral to a preferred lender with good rates.

Tips & Warnings

• If you are not familiar with various lines, visit your local home improvement store and talk to salespeople. It is worthwhile to pay for quality.
• You may have less negotiation power when buying new construction. Builders are reluctant to negotiate for fear of alienating customers who have already purchased. A survey in the mid-1990s showed builders willing to trim about $600 while resale sellers accepted a drop of about $5000.