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Should You Buy A New Construction Home? 3 Questions To Ask

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Thinking about buying a new construction home in a brand new subdivision? That could be a wise choice. When you buy a home in a new community, you get the opportunity to grow with the community. You may be one of the earliest residents, so you get to meet and become friends with neighbors as they move in. You also may see a significant appreciation in the value of your home, especially if the surrounding area develops quickly.

Of course, new construction homes aren't perfect. Even though all the parts and materials are brand new, there could still be issues with the home or the neighborhood. It's important to do your due diligence to make sure you get the right builder and home. Below are a few questions to ask the builder:

What's under warranty and what is not? Just because everything is new doesn't mean it will work perfectly. New parts can have issues too. Most new homes come with a range of different warranties to provide protection, especially in the early years of the home's life. However, not all warranties are the same. Some warranties are backed up by the builder. Others, such as for windows or appliances, may be from that specific item's manufacturer. All these warranties may have a differing duration of coverage. Be sure to get documentation from the builder on the warranties for each part in your home.

What is the builder's reputation? The builder's process and attention to detail may be the biggest factor influencing the quality of your home. Do some research on their past projects to see if there are any red flags. Has the builder ever been involved in any kind of lawsuit because of work in their homes? Have there been recurring issues like mold or moisture problems? You can probably find plenty of information with a quick online search. However, you may want to ask for references for past buyers who you can speak with about the builder's work.

What's negotiable? Many builders don't like to offer significant price cuts to homes, especially in the early phase of selling. A reduced price sets the market for the rest of the homes in the neighborhood. That doesn't mean you can't negotiate, though. You may be find that the builder is more flexible with items not reflected in the price, like closing costs or upgrades. You might ask for an extended warranty or an upgrade to the higher-quality counter tops. Be creative and don't be afraid to look for the best deal possible.

Ready to find your new home? Research home builders in your area, tour their model homes, and be sure to ask plenty of questions to get the right home for you.