Today we're going to talk about the process for buying a new construction home. If you don't yet know me my name is Karen Jackson. I'm a residential real estate agent with John all Scott in Renton Washington and the surrounding areas. I work with buyers and sellers and I create this YouTube channel to teach you tips and tricks on how to buy and sell a home . If you've not yet subscribed to my channel please go and do that right away and hit that little bell for notifications. It will then notify you of any upcoming videos.
So let's get right to it! Buying new construction can be very desirable because everything is all shiny and new and move-in ready. Sometimes it can be easier to purchase a new construction home when we are in a multiple offer market or if you have to buy contingent. Buying a new construction home has a little bit different process and I want to share it with you.
Here are some tips to help you through the process for buying new construction. #1 choose your lender and choose your real estate agent that you want to represent you. Doing this from the get-go will save you time and confusion and stress. Every site has a site agent who will be there to help you but without a doubt you still need your own representation. Watch my video on buying a new construction home and why you need your own agent to represent you. You can see that in the comments below. Be sure to have your agent go with you on your first visit or the very least register you at each site you want to visit. Some builders refuse to pay your agents Commission if you do not sign them up as your agent in the beginning. Builders have their own contracts and have very strict guidelines you need to have someone who is watching out for you! Most of their clauses protect the Builder.
When you hire me to represent you on a new home build I am free! No cost to you and I will walk you through all the pertinent steps and show you the pros and cons of every situation . I will makesure you know all four tips and even more right from the beginning.
Tip #2. Know your budget. Make a wish list of your must-haves and the ones you would love to have right from the beginning both structurally and design options. Many of the times the model homes you go into our full of upgrades. The price of the house that is listed does not always include those upgrades. They are available for additional money but you go into the model and you see all these beautiful upgrades.Many times people spend $25,000 or more on upgrades There are some builders where their prices include many of the upgrades and some where the price is just the base price so be sure to ask upfront . You will want to be sure you get a list of the standards included and the upgrades available. It is sometimes a bit overwhelming to see the beautiful model all staged full of upgrades and realize how much all of that will cost to make yours the same. If you have an idea of what you would like upfront it is easier to stick with your budget. Many times the prices of the upgrades have been inflated by the Builder. Sometimes you can add the upgrades after the closing for much less money depending on what upgrade is. Some have to be done during the build process or you will have to tear things out later.
Tip #3 Buy with resale in mind. If you're planning to keep this as your 30-year home or longer then you don't need to be too careful here but one thing I have learned in my ears is you never know what life brings. If you're planning to keep the home for the shorter term you might want to be careful on over customizing or adding specialty items specifically to your taste. You typically don't get your money back out of these upgrades. If you're going to love and enjoy it then it is all worth it but you just need to be aware that these are for you mostly. Also be careful of being too trendy/ Trends don't last forever and then you may need to upgrade your home to the current market if you consider selling.
Tip #4 Be aware of lot premiums. The Builder has lot prices built into the price of the home but many times for a corner lot or a view lot or an end lot or a larger size lot. They will add a premium cost which adds to the price of the home. Here again you will want to be sure you know your budget going in and also thinking resale again, a lot premium doesn't always transfer over at the time you go to sell your home. A bigger lot or a corner lot is more desirable usually but depending on the market it doesn't usually add the same premium price as it does when you buy it from the Builder.
Tip #5 hire a home inspector. Most builders do not encourage home inspections, so the site agent typically will not offer this. The builders have to go by building codes and get permits signed off with the county or city, but sometimes items get missed in that process or not installed correctly. Sewer pipes get crushed in construction, water is in the crawl space and nobody knows about. it. An inspection is typically done at the time of your final walk through. You can hire an inspector to help you with that walk through to be sure you do not miss anything. It is worth $500 or so to catch potential issues. It could cost you more later if something is missed or it occurs after you move in or after the warranty expires. Or when you go to sell, that buyer will likely have an inspection done and it would get caught then. In order to have an inspection done you will need an inspection contingency in your contract from the beginning.
If you're ready to get started on buying your new construction home, fill out the form listed above the link is also below in the description. As well as a link for a list of available new construction homes in King County.