Building a new home can be so exciting, especially in a development that you really love. You get to make the home exactly the way you want it with the finishes you select. It can be quite easy to get caught up in the excitement over your new home that you overlook some important questions you need to ask the builder.
Always Bring Your Realtor
A quick note first, before you walk into that builder’s sales office the first time, be sure to bring your realtor along with you or the builder could refuse to work with them. Your agent’s fee is built into the marketing budget, not the sales price, so not having one will not reduce the price of the home. You want to make sure you have a realtor that can protect you and can level the playing field. Having a realtor will help you navigate the multi-faceted new build process. Now, for what questions you should be sure to ask.
1. What do they allot for upgrades?
The model home you tour is packed with upgrades. When it comes time to build your dream home, you will be deciding which upgrades to include. Before you select upgrades, ask the builder’s sales agent if they offer a certain allotment for upgrades. Also, consult your realtor to help you select upgrades that will improve resale value down the line.
2. Does the builder’s lender offer incentives?
Another great question to ask is does the builder have a relationship with a specific lender who may be able to offer you incentives? I’ve seen builder’s lenders offer design center credits or a credit toward buyer’s closing costs. Of course, you can still shop around to see if a different lender of your choosing can offer better rates or terms.
3. Are There Lot Premiums?
When building a new home, you get to select your lot provided you aren’t picking the last one in the neighborhood. Some lots can come with an additional charge depending on positive attributes such as corner lot, flat lot, view lot or cul-de-sac. Before selecting your lot, ask if it comes with a lot premium. One thing I always advise my clients to pick the lot they love because you can’t pick your home up and move it once you start building.
4. Can You Have A Third Party Inspection?
Another thing I always advise my clients to do with a new construction home is to get a home inspection. Many buyers believe they don’t need one because the home in brand new. However, construction workers can make mistakes, so it is always a good idea to get a third-party inspection done to ensure your home is move-in ready. Some builders will want their own inspector to do complete the inspection, but they have an allegiance to the builder. Having a third-party builder ensures you get an unbiased report.
5. What Phase of the Development Will You Be Building In?
Will you be building in the earlier phases of the development or the last phase? If it’s in the earlier phase, you will be living among construction noises and trucks for the next few years. While that can seem like a drawback, homes that are built in the earlier phase of the development will see higher increases in equity than homes built in the late phase.
Other Questions To Ask
- Is landscaping included?
- What are standard finishes?
- Are there homeowner rules or regulations?
- How long will the build take?
- What warranties come with the home?
Now, there are so many more important questions to ask to help you go through the new build process with a clear eye and a solid idea of what to expect in terms of money, timeline, and the entire process. I’ve seen just how easy it is to get swept up in all the excitement because it is so exciting.
Let’s make sure we stay on top of the process every step of the way. There are so many new neighborhoods popping up around Nashville, so if you’re ready to explore the new construction option, just go ahead and shoot me a message or give me a call.
I am experienced in helping clients buy new construction homes in Nashville, so I would love to help walk you through the entire process and get you into the home of your dreams.