New Home Buying Tip
2008-01-11
In recent years, new home purchasing has been considerably high, especially as investors flocked to new home communities. Within California alone, there have been huge developments of new homes in areas such as Palo Alto, Tracy, San Jose, Gilroy, Central Valley, San Diego, Los Angeles, Manteca, and Stockton just to name a few. Although new home sales have been hurt by the general housing downturn, new homes are still a popular choice for home buyers.
A newly constructed home often employs the latest technology and materials, making the house eco-friendly, safe, and efficient. Because materials, piping, roof, windows, insulation, and appliances are all new, a newly constructed home requires much less maintenance than a home over 10 years old.
When buying a new home, there are a few things you should be aware of.
- Home builder reputation: There are numerous home builders out there including Centex Homes, KB Homes, Lennar, Shea Home, D.R. Horton, and Toll Brothers just to name a few. Before buying, check the home builder’s reputation. Looking into post home purchase customer care, overall customer satisfaction, and general home construction quality.
- Location: Check not only the overall location of the home, but also the specific location of the home in regards to its lot position. Find out what is or is going to be around the community. What was on the previous land where the homes are being built?
- Home construction: If you have the chance to see your home being built, drop by during various construction phases to make sure your home is being built properly. Home builders often contract jobs out, so make sure sub-contractors are doing an honest job. Point out shortcuts and shoddy work as these will only lead to problems for you later.
- Referral / broker fee: Often new home builders offer financial incentives if you were referred or if your first visit is with a broker. When shopping for a new home, take a broker with you and have an upfront arrangement to split the easy commission fees with the broker.
- Ask questions: When in doubt, ask questions about your new home. Builders expect this, so don’t be shy. Make sure you’re comfortable with and understand what you’re buying.
- Bargain: Like a new car, you can bargain on the price of your home. Get help from a realtor to make a far, but aggressive offer. You can often pay less than asking or have incentives and options included, especially in slower housing markets.
Given a new home will be one of your largest purchases, take the time to do research. It’s amazing how much time someone will spend more time researching their next car, but won’t devote even 10% of that time and effort to their next new home. Just like a car, not all new homes are built the same. Find the home and builder that are right for you.