10 tips to save time and money:

the buyer's guide for NEW HOUSES

 

“Read this report BEFORE you visit your first model home!

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When you want to buy a home, you will find that most of the homes on the market are resale. However, one in four buyers buys a new home. Both new homes and resale homes offer advantages. Before you make a decision ...

 

Compare these points!

 

New houses

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• Innovative use of space and style.

• Greater energy efficiency.

• Choice of options and improvements.

• Everything is new and modern.

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Existing houses

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• On average, they are cheaper.

• Often they are found in established landscaped neighborhoods.

• The foundations of the houses have stabilized, eliminating possible structural problems that can arise after purchasing a home.

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As you can see, new or existing homes have their advantages. Most people consider both new and existing homes before deciding to buy. If you are thinking of buying a new home, here are 10 things you should consider before visiting a model home.

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1-Determine a comfortable price range

 

Before you visit your first model home, sit down with your mortgage broker and educate yourself. You need to know the facts so that you can determine a comfortable price range for your new home. If you own a home, you first need to know the net proceeds from its sale to determine how much money you will be using. It's not enough to estimate it, you need to carefully calculate every possible cost of sale. If you are a first time home buyer, first you need to analyze your income in order to establish your down payment amount. Next, you need to find the monthly debt level that's right for you so that you can determine a comfortable price range.

 

2-Brokers of sellers as opposed to Brokers of buyers

 

Here is a good point to remember. The seller of a model home represents the builder, not you. He is known as the seller's broker. As a buyer, you can work with a buyer's broker at no additional cost. He's here to best represent your needs by being knowledgeable about construction, warranties, financing, price differences, quality, and even lot selection so you get the best value for your money.

 

3-A builder for all the reasons given

 

Like all people in the trade, builders have varied areas of expertise. Eg, some specialize in art, others are known for innovative use of space. There are those who offer financing at lower than market rates or customer care during construction and after move-in. Determine your preferences or special needs and find the builder that best meets your requirements.

 

4-Find out about your builder

 

Before making a final decision, it is wise to verify the reputation and financial strength of the builder. Obtain the "specification book" on the characteristics of the house from floor plans to energy efficiency as well as the availability of the lot and the realization of your house.

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5-Check the neighborhood

 

• Learn as much as you can about the neighborhood.

• Discover the amenities it offers.

• Find out if there are financial reserves to build or replace important amenities, such as schools and local roads.

• Check with land use officials about any planning or construction planned in the area, especially where there is vacant lot.

• Review the Home Owners Association bylaw or find out if such an association would be established.

• Think about the impact that the distance and the hours of travel will have on your life.

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6-Choice of options and improvements

 

The lower the base price of the home, the more options and upgrades you can add without fear of overstating it for the neighborhood. Options are items that the builder installs during construction, such as adding a usable space such as a sunroom or half bathroom. These features can add the most value to the resale of your home. Upgrading means choosing quality above the “builder's standard” such as carpet, ceramic, kitchen accessories and appliances. Be sure to take advantage of the incentives offered by the builder, which offer free upgrades or a reduction in the selling price. Remember, sometimes you can add a patio, finished basement, or landscaping later for a cheaper price.

 

7-Negotiations

 

Often, buyers do not realize that there may be scope for negotiation regarding price, upgrades or options. For example, you have some leeway with the builder if they've built a house but haven't sold it. Also, the price of certain “superior lots” is higher and they are sometimes kept to be sold last. Remember that in general, all lots cost the same price to the builder. Therefore, be sure to inquire about the price of the lot. Builders may offer discounts or specific financing to close a sale.

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8-Make sure the contract is in your favor!

 

When explaining the details of the agreement with your builder, be sure to protect yourself with backups written in the agreement specifying for example:

 

• placing your deposit in a trust account

• details of your improvements

• an authorization to access the construction site to check the progress of the work

• the obligation to provide 30 days notice for the date of transfer of ownership

• the meaning of the fine print in the manufacturer's and manufacturer's warranties

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9-Financing - What is right for you?

 

Some builders may offer a special financial program, especially in high volume communities where the number of loan applications is greater. However, since "home loans" are highly competitive, you may have many different financial choices than those offered by the builder. Learn all the details, from rates to lender fees. Appraisals, inspections, general studies, notaries and closing costs may also vary.

 

10-It is not because it is new that it is perfect

 

Yes, it is new, and typically built with modern materials that are durable, low maintenance, stronger, quieter and safer. But because nothing is perfect, even if it is new, consider the services of a licensed and reputable home inspector, then create a list of work to be completed for the builder from all the information received to fix. any problem before the date of transfer of ownership. Consider budgeting for items to change or add later. Many new home buyers use a real estate broker to help them negotiate the best price and terms with the builder.

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*** Buyer's benefits that your builder may not tell you! ***

 

Here's a fact you probably aren't aware of: Some builders have newly built homes available for immediate delivery. Usually they are ready to move in within 30 days. Even if some builders want to sell them, they do not disclose the information.

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• Immediate delivery houses are often available for a variety of reasons:

• The neighborhood, where new houses are being built, is almost complete. Therefore, the builder undertakes the construction of “spec” houses (houses built for sale for speculative purposes) on the last lots by the contractors on the job.

• The model home is for sale.

• The contract for a house was terminated.

• Builders include homes built for immediate delivery for buyers who are moving or who have sold their previous home and need one to move in quickly.

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Immediate delivery homes may be more desirable because builders sometimes offer finance incentives or free options. These offers are probably made instead of lowering the price to attract buyers buying later during the construction phase. An immediate delivery home is a great way to buy a home for a quick move or, if physical space is needed, to walk around and see before signing a contract. Make sure you educate yourself.