New build houses are the best option whether you are a first-time purchaser, have growing family or even “proper sizing” in later years. However, there are common challenges most home buyers are unaware of.
Purchasing a new house brings on various issues than buying a pre-owned home. For instance, you have access to more vital information on the building systems and materials than a subsequent buyer.
For one reason, there is no former homeowner, and you do not have to deal with the seller’s emotional tie to the property that typically affects the bargaining process.
Whether you are designing and building a custom house or purchasing a home from luxury home builders Chicago that is built to the specifications of a new subdivision, you need to work with the builder. Here are some of the essential things you should consider when purchasing a new house:
1. Get a guarantee
In case, you want to purchase a home that has not been completed, what assurance do you have that the house will be ready on time? As a result, your purchase agreement/documents should clearly state the completion date.
However, several builders add provisions which make the completion date reliant on the availability of building materials from suppliers or approvals from the municipality. Additionally, there can be extra charges if you are unable to close on time in case your lender is not ready.
2. Get everything in writing—Keep records
Do not sign anything until everything concerning the purchase has been discussed, agreed upon and written down in the contract.
If you are considering to buy a house which is not yet finished, it is very crucial to consider how the house will be completed, what will happen in case the construction is not finished on time and the deadlines for decisions which will occur in the process?
Verbal agreements are not good at all. Therefore, everything crucial must be put in writing and signed by all parties involved.
3. Find a great agent
Ensure that your commercial agent has enough experience in new construction and is not affiliated with the builder. Model houses are typically controlled by real estate agents who have the relationship with the builders.
It is recommended for you to have a real estate agent to represent your primary interests, from advising you on how to structure your new offer to be very appealing to the builder to make good choices which can influence your house’s resale value.
Some developments have site registration policies, which need, your agent to accompany you on one of your initial visits.
4. Do your research on the builder
Preferably, visit other developments and talk to various homeowners. Search online for testimonials, reviews, and news. Remember that several builders will have both the best and worst customers in their past. Look for reviews and ensure any concerns are covered during the purchase agreement documents.