Are you considering buying new construction? Building your own home is a great way to ensure you get the EXACT home you want. However, there are a few things to consider to determine if buying a new home is the best route to go for you.
Contract. If you decide to buy new construction, you will be signing a Builder’s contract. Unlike pre-existing homes, a builder’s contract will greatly favor the builder rather than the buyer.
Earnest money. Typically, the earnest money will go “hard”, what this means is the buyer leaves the contract, the Builder will keep the earnest money. You will want to make sure this is the right decision before signing the contract and handing over earnest money.
Timeline. Whenever you are buying new construction, the builder will give you an expected delivery date (this is when they think the home will be completed). However, unless the home is already drywalled, the timeline will be just an estimate and the timeline can be delayed. Weather, subcontractors, the city, permitting may be just a few items that could delay the completion.
Design Center. All those upgrades that you love could get pricey. Often times the first Design Center appointment can be sticker shock. However, it may take a few compromises to stay on budget.
Appreciation. Keep in mind when you buy a new home, you are paying top dollar for a brand new home. This is not a bad thing but it can take longer to see your home appreciate especially if there are more new homes being built. Brand new homes are a longer term investment and you should buy a new home if you plan to stay for five years or longer.
Builder: Every builder is different in quality, communication and timelines. Make sure to do research on the Builder or ask your real estate agent.
With so many new communities being built in metro Denver, building a new home is a great option. If you have a flexible timeline and plan for this to be a longer term home, building a new home is an excellent option. Be sure to chat with Liz about new home communities that might fit your needs!
Liz is broker and owner of Liz Daigle Realty.
