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ShareDue to the ongoing coronavirus pandemic, existing-home inventory is at an all-time low in the U.S, with prices skyrocketing. If you’re struggling with finding a new resale, or are just looking for a fresh start, new construction could just be the option.
There are numerous advantages of investing in a new construction home. They offer enhanced energy efficiency and safety, the layouts and amenities are more suitable or modern lifestyles, and in some cases, they offer customization possibilities that you just don’t get with a resale.
However, if you don’t exercise care and caution, expectations and costs can quickly spiral out of control. To help you avoid such a scenario, we’ve listed down three costly mistakes to avoid when buying a new construction home.
Choosing a Lender without Looking at the Different Options
The majority builders have preferred companies or in-house mortgage lenders they do business with who may or may not offer terms and rates that are competitive. However, what’s certain is that you’ll never know if you’re being offered a competitive rate if you don’t shop around for a mortgage rate.
The majority builders have preferred companies or in-house mortgage lenders they do business with who may or may not offer terms and rates that are competitive. However, what’s certain is that you’ll never know if you’re being offered a competitive rate if you don’t shop around for a mortgage rate.
You get more leverage in terms of negotiating interest rates and loan costs when you make outside and in-house lenders compete for your business.
Not Taking the Time to Understand Builder Warranties
You’ll hear about 2 different types of builder warranties when you purchase a home: express and implied warranties.
Workmanship defects that affect a new home’s safety, livability, and habitability, based on the state and local building standards and codes are covered by implied warranties. In addition to vaguely worded, these generally last for ten years.
Some builders offer express warranties that clearly specify the part of the new build that are covered as well as the liability cutoff times. When offering an express warranty. Some builders ask buyers forego the rights they have under the implied warranty. Therefore, it’s vital that you read all warranties closely.
Choosing Upgrades That Don’t increase the Value of Your Home
Just step into a builder’s showroom, and you’ll be presented with seemingly limitless add-ons and options. However, before you go wild with the upgrades checklist, it’s important to evaluate every option carefully. The wise decision is always to select upgrades that will enhance the home’s value instead of just making it look a little nicer.
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 them for further information.
