Before you sign a contract for a new-build house, ask these questions.
Are you thinking about getting a new-construction home with all the bells and whistles? Be sure to have your own representation because the seller’s agent is only there to protect the seller and give them the best terms and price. Here are ten questions you need to ask the sales representative before you get too excited and sign a contract:
1. How long has the builder been in business in this area? You want to ensure you’re working with a reputable builder who knows your market, and who’s knowledgeable about the local area and market conditions.
2. Can the builder provide three references from past clients? You should know how the builder handles repairs and meets deadlines.
3. What are their standard and upgraded finishes? Make sure to receive an itemized list of the upgraded finishes, so you know what’s standard and what’s an upgrade. Remember, those models have all the bells and whistles to make you want to buy them, but most of that fancy stuff will be added to the price tag of the home.
4. What is the timeline for each building phase? For example, how many days will it take to lay the foundation and complete the framing of the house?
5. Can you have a four-point inspection of the property? Four-point inspections are shorter evaluations that focus on four key areas of the home: the electrical system, the plumbing, the roof, and the HVAC system. This can be costly, but you can hire an independent license inspector to double-check the builder’s quality of work during key phases of the construction process. Most builders welcome this because it helps to affirm the quality of their work and protect them.
“Be sure to have your own representation.”
6. What warranties are provided with the home? Typically, the builder offers a one-year warranty with the purchase and a new appliances warranty, but there are extended warranties for things like construction, windows, and foundation.
7. Is landscaping included in the front and the back?
8. What is the size of the lot? Make sure you know if it is included in the purchase price or if the lot comes at a premium.
9. Does the builder offer any incentives with the purchase of the property? Sometimes builders will give a closing cost credit, and if you use their preferred lender, they will give you even more of a closing cost credit. However, be careful because a mortgage broker also wants to keep the builder happy to make sure there is no conflict of interest.
10. Is the builder aware of any major developments planned near the property, at this time or in the next five years? For example, plans for a cemetery to be built near the back of the home.
Be sure to reach out to us by phone or email if you’re thinking about buying new construction. We’re here to protect you and negotiate on your behalf. It doesn’t cost you more money, and you will likely end up paying more without proper representation.
