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ShareAccording to a Huffpost report, a sizable 41% of the American population prefers a newly built home over a resale home – and it’s easy to see why.
A new construction home – that has never been lived in before and is yours from the ground up – shines of possibilities. From the sparkling new flooring, to the fresh paint – it’s like a blank canvas to make your own without having to deal with any repairs or other inherited issues… or so you would hope.
Unfortunately, we still get to hear new construction horror stories about builders that backtracked on the warranties they promised, or of substandard workmanship. So, to help you make a smarter purchase and avoid costly issues, we’ve put together a list of some key questions to ask when purchasing a new construction home.
#1. Have You Built Any Subdivisions or Homes Previously? If so, Can You Provide any References?
Whether you’ve seen the finished product or found the home when it was under construction, it’s always smart to talk to your fellow buyers. Getting buyer references from the builder on any other projects they’ve built and developed is the first thing you should do. It’s even better to do a little poking-around on your own.
So, find some time on a weekend and take a drive through a subdivision that has been recently developed by the builder. Find a random homeowner who’s willing to talk and ask them:
• Did they encounter any problems?
• Were they addressed promptly by the builder?
• Would they buy again from the same builder?
• Were they addressed promptly by the builder?
• Would they buy again from the same builder?
#2. Is There a Warranty Program? If So, What Are the Specifics?
The majority of builders offer a limited workmanship warranty, either on a separate document, or within the purchase agreement or sales contract. The length of the builder’s warranty depends upon the type of work. For instance, most builders typically offer a one year warranty for materials and labor, two years for electrical, plumbing, and heating defects, and 10 to 15 years for any structural issues. It’s essential to have your attorney course through the warranty paperwork before you sign any agreement.
#3. Can the Property Be Inspected By a Home Inspector Before I Close?
Typically, lenders asks for a certificate of occupancy for a new construction home before you’re granted financing. This document is issued by your local building department after it has verified that the builder has completed the property’s heating, wiring, plumbing, and other specifications.
However, a certificate of occupancy doesn’t mean the property is in flawless condition. It just means that its “livable”. Therefore, before closing, it’s important to have the property reviewed by a professional home inspector. After closing, you’ll have significantly lesser leverage to make the builder fix any issues.
Looking to buy a new construction home? Well, you’re at just the right place! The ultimate new home inventory search tool for home buyers, Builders Update has revolutionized the process of buying a new construction home, providing homebuyers with complete, updated information of to-be-built and new construction homes. Get in touch with us for further information.
