3 Tips When Buying a New Construction Home
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Are you thinking of purchasing a new construction home, but would like some pointers before doing so? Read on to learn the top three tips when purchasing new construction.
Tip #1: Research The Incentives
Research the incentives prior to walking into the sales office. Typically when it comes to new construction, the builder likes to offer incentives for you to work with their in-house lender. So majority of the time, if you are going into the new construction sites unrepresented without your own agent, this might not be something you're aware of.
Some of the incentives that they might offer are credit towards the design center, which you go and pick out your upgrades for the home, or it can be a credit towards your closing costs. It's important to know what these incentives are so that when you're deciding on who you're using as your lender, that can play a big deciding factor.
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Tip #2: Beware of Home Starting Prices
Do not be fooled by the starting prices on the signs. Let's just play out a scenario that you're pre-qualified for $350,000. The builder advertises the home starting at $320,000. That sounds pretty desirable and you're well-qualified, but there are ways that that price is going to go up.
Typically home buyers will offer multiple layouts of floor plans. The most basic plan will most likely be the one starting at $320,000. A few ways that builder will most likely upcharge from that $320,000 is either structural designs, home lots or cosmetic designs. Structural designs could be anywhere from the paint on the outside of the house or the brick finishing on the outside of the house. Or if you maybe want a full wall or a pony wall on the inside.
It's also important to remember when you're picking your lot out from where your home is going to be built, that it does make a big change in the price. The beautiful corner lot that's facing the mountain is going to cost more than the home that's in the middle of the subdivision. When it comes to cosmetic, that can be anywhere from the basic kitchen add-ons to quartz countertops and wood plank flooring. Everything will add up quickly.
You have to keep that in mind that majority of the time when you're walking through the model homes, they have the top tier ad-ons that the builder is advertising. They're not showing you the starting home at $320,000.
Tip #3: Research Resale Homes For Same Price
Make sure you double check how much a resale home will get you for the same price. Depending on what you're looking for in a home, it's important that you check with your real estate agent what you're qualified price point will get you in the residential resale market. If you are happy going forward with new construction, I say go for it. It's a great option. But if you're looking for something that maybe has a bigger lot, and isn't going to be in an HOA community, and you're able to find that on the residential resale market, maybe a new construction might not be the best fit for you.
I hope these three tips were helpful if you're looking to purchase a new construction home. It's important to remember that you should not go into your first appointment without being represented by your agent. You want to make sure someone is going to have your back and look out for you and do negotiations for you while you're in the process of building your new home. If you have any questions about Tucson or real estate, I invite you to text, email, or call me.
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Rachel Clark
Hi, I'm Rachel!
As a Tucson native, I have been fortunate enough to experience everything Tucson has to offer! I love being able to speak to people on a daily basis who are either looking to move to Tucson or are fortunate enough to already live here! You can reach out too. Send me a text, give me a call or shoot me an email. I'm here to help however I can when it comes to moving to Tucson!
