How long will construction take?
You want to know one thing when buying new construction, but take the answer with a grain of salt. Weather issues permit holdups, inspection delays, and other matters outside your builder’s control can be a significant setback to the construction process, so when your builder gives you an estimated closing date, make sure it accounts for these and other hiccups.
What’s included in my home’s purchase price?
Those who are buying a brand-new house are often surprised to learn that certain items aren’t included in the price of their home like closet shelving, towel racks, and even furniture hardware. Make certain you know what comes with your new house purchase and what doesn’t so you know what to expect and how many extras to budget for.
How much extra could I get stuck paying?
New construction houses often come with an escalation clause that lets your builder pass the cost of unexpected expenses, like higher material fees, onto you. Discover if your contract has one, and if so, what that clause entails. And do not hesitate to negotiate the figure downward. Generally speaking, you need to attempt to avoid a contract with an escalation clause over 10%.
Is my property part of an HOA?
Newly constructed homes are often made available as part of developments that a homeowners association or HOA governs. HOAs can be very restrictive, imposing rules that impact your daily life and exterior design choices, so find out if you’ll be subject to one — and the fees that come with it.
What type of warranty will you provide?
Warranty protection for newly constructed homes are common. Most warranties protect you from certain repairs in the first year or two after closing on that property. Find out what sort of warranty you are looking at and the process for filing claims should that become necessary.