Is New Construction Right for You?
If you've driven through Brunswick County at any point in the last year (and likely 10+ years), you've seen the number of new construction homes and communities in the area. As home prices and interest rates increase, many buyers look to this option to attain a new home. While builders provide buyers with options throughout the process, decisions involving the floorplan, upgrades, financing, etc. will need to be made which can cause the process to feel overwhelming. As development continues, buyers should familiarize themselves with the lesser known intricacies of the new construction process.
Allocate Budget for Excluded Items
As with most experiences, the process of building your home involves a few “excluded” factors that may go unknown or unnoticed until the home is complete and the builder is onto their next project. Your fresh start in your dream home is then left with a few outstanding items and decisions that involve some budget allocations.
Consider this: You’ve just built a brand new construction in a subdivision managed by a Homeowners Association (HOA). One of the HOA rules and guidelines dictates that your lawn must be landscaped and well kept. The yard and landscaping was not a part of your new construction contract, and now you are left with limited time to put down grass and plant your trees, flowers, and bushes.
Many new construction homes do not come with what a buyer may deem “basic” items. Lacking items such as window coverings, toilet paper holders and towel racks, light fixtures, and closet shelving may not make your new home as “move-in ready” as you would hope. Be sure to clarify what is included versus what is not before you move in to avoid any surprises. You should then allocate funds and/or create a timeline to finalize the purchase and/or installation of these items to really make your home feel complete.
Builder Warranties
During the purchase of your new construction home, you will likely experience one of two types of builder warranties: implied or expressed. Implied warranties are extremely vague in nature whereas expressed warranties more clearly define and detail the stipulations of the warranty.
Builder warranties are not guaranteed to cover all types of defects or problems that potentially arise with a new construction home. Examples of protections not provided include:
- Appliances and other items protected by a manufacturer’s guarantee or warranty
- Damages resulting from regular use
- Flaws arising from homeowner neglect or insufficient maintenance
- Imperfections in installations carried out by homeowners or third-party contractors (i.e., not the original builder)
- Damages resulting from natural disasters
Make sure you discuss the type of builder warranty you are receiving. If you feel that you want or need additional coverages, you may want to reach out to an insurance professional to see what other protections are available for your home.
Avoid Unnecessary Upgrades
Building a home is a very exciting undertaking. There can be many options for selecting upgrades during the process. If your process is dictated by a budget, it is important to avoid going on an “upgrade spree”. To remain more cost efficient, consider which upgrades will enhance the home’s value and which upgrades will simply enhance the curb appeal.
Be sure to take note of the builder upgrade price versus hiring an outside contractor to do the work. It could be more cost effective to hire a contractor to perform a needed repair or upgrade once the construction is complete. (You will also need to consider how this may affect a builder’s warranty.)
Negotiations
When it comes to new construction homes and the building process, a common misconception for buyers is that builders will not negotiate the price. This is not always the case. Hiring a real estate agent means having an industry professional on your side to advocate for you every step of the way. In addition to protecting your money involved in the transaction and helping with any issues that may arise, a REALTOR® will help remind you of the property’s potential resale value. This factor alone will also assist you when determining whether or not to opt for upgrades.
The surge of new construction homes and communities in Brunswick County signals an interest, albeit demand, in buyers for that type of real estate. Amidst the excitement and anticipation around starting the construction of your new home, it is important to remain aware of the intricacies involved in this unique buying experience. One of the easiest ways to maintain this awareness, and to ensure that you are making informed decisions in attaining your purchase goals, is to hire a professional REALTOR® like those at Margaret Rudd & Associates, Inc., REALTORS® as your guide and advocate.
Posted by Margaret Rudd & Associates, Inc., REALTORS® on
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