Five Questions to Ask Before Buying New Construction

Building a new construction is a lot different than buying a preexisting home that’s for sale. This process can be confusing but working with experienced Realtors ® like the Brill Team we can help guide you through the process and make sure you ask the right questions. We’ve put together a list of five questions that all new construction buyers should ask builders before signing a purchase contract.

Is the lot cost included?

When building a spec house within a subdivision, it’s likely that the lot cost is already factored into the overall expenses. However, if you’re embarking on building a fully customized home, this may be automatically covered. It’s advisable to inquire with the builder about the inclusion of the lot cost in the final pricing.

In various subdivisions, certain lots may be deemed more desirable than others, warranting a higher price tag. It’s recommended to check whether the lot you are considering comes with an additional premium fee.

What landscaping is standard?

In new construction it’s common for homebuyers to overlook items such as landscaping, hardscapes, and grass. These elements are usually not part of the standard new construction sales contracts. Make sure that you have written confirmation from the builder providing all standard inclusions.

What is considered standard, and what is an upgrade?

Builders vary in the offerings they provide, so it’s crucial to inquire about available upgrades and request a comprehensive list detailing the associated costs.

While certain builders may present a higher initial price, they might include more upgrades, potentially offsetting the need for additional expenditures. Conducting thorough research in this regard is essential, as the choice of upgrades can significantly impact the overall cost of your home.

Can I change my mind about features and upgrades?

It’s not uncommon to change your mind during the construction process. But at what cost?

Builders understand that this is a significant purchase, and most are willing to handle changes. However, change orders may result in additional costs and potential delays. It’s crucial to obtain comprehensive information on this aspect. Additionally, inquire about a specified timeline outlining when changes can no longer be accommodated – such as the point at which adjustments to details like cabinet colors are no longer feasible.

When do I owe money?

Many builders require a deposit upon signing the purchase agreement, and this sum is usually integrated into your eventual down payment.

Subsequently, there is often an obligation to cover the costs associated with upgrades. Most builders seek payment upfront for upgrades to mitigate potential losses in case the deal falls through, as they may face challenges selling the house with customized upgrades to another buyer.

Payment for upgrades can vary, with some builders asking for cash, while others permit you to include these costs in your financing. Ultimately, the down payment is settled at the closing of the transaction.