As the Las Vegas housing market picks up steam a wide range of new developments being planned or under construction. Due to supply and demand, these new homes these are selling fast.
If you are thinking of buying a new construction home, you’ll face a different set of challenges, outside of buying a newly built home in a fast moving market, than when buying a resale.
How to Successfully Buy A New Construction Home
You can avoid critical mistakes when purchasing a home by following these tips:
1. Hire A Real Estate Agent Who’s Experienced with New Construction
A real estate agent experienced with purchasing new construction can help you successfully navigate the buying process. They can handle paperwork, conduct research and answer your questions while helping you avoid costly mistakes.
Pro Tip: Ask your REALTOR to accompany during your first visit to a new development. Many builders require this in order for you to keep your right to independent representation.
Read: How Do I Find the Best Real Estate Agent?
2. Research the Builder
This is one of the most important aspects of buying a newly constructed house. Read about the builder, their history, and any online reviews you can find.
Pro Tip: Ask your REALTOR what they know about the builder or if they know agents who have experience with them.
3. Thoroughly Read All Paper Work
Buying a new home build entails lots of paperwork, especially if the home is still under construction. Make sure you read everything and know your and the builder’s responsibilities.
Pro Tip: Ask your REALTOR to get all commitments from the builder in writing.
4. Negotiate New Construction Upgrades without Going Overboard
Model homes usually include a range of standard features as well as upgrades. Ask your REALTOR to find out which are standard, which are extra, and how much they cost.
Pro Tip: Builders are much more likely to agree to free upgrades instead of a discount on your home price, so ask your REALTOR to include them in negotiations.
5. Do a Post-Inspection Walk-through Upon Completion of the Home
Your home should meet all building codes upon completion. Hire an independent inspector to walk through your home to find anything that needs to be repaired.
Pro Tip: Ask your REALTOR to find out your rights if repairs are needed.
Read: Closing on a House: Have You Covered All Your Bases?
6. Ask About Builder Warranties
Many new homes come with a warranty, but your coverage could vary substantially between builders. Additionally, some parts of your house could have their own warranty separate from the one that covers the rest of your home.
Pro Tip: Ask your REALTOR early in the buying process to inform you of what the builder’s warranty covers to avoid any surprises later on.
7. Do Your Own Homework on Lenders
Your builder will likely have its own recommended lender, but you might get a better mortgage rate from an independent source. On the other hand, your builder’s lender might be willing to offer you a better deal than a bank. They may also be your sole financing option as well.
Pro Tip: Ask your REALTOR to find out what concessions you can get from the builder’s lender to know if you should seek outside financing.
Buying new construction home presents its own set of challenges, but you can make the right choices once you know what to expect.
Ready to find your new home? Get started with real estate agent who’s committed to you. Contact Kym E. Booke today, 702-525-5498.