There are tons of choices available for those who are planning to get brand spanking new homes in the current real estate market trend. According to the information from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, single-family production is predicted to attain 840,000 units during the year 2017, an increase of 18% when compared to 2016, as per to the Association of Home Builders.
Unfortunately, in the current trend, new residential construction is available at a steeper price for the home buyers. Still, there are many strategies which you can implement to make the best deal.
Here are some of those amazing strategies explained in detail:
Ask questions related to financial incentive offerings
It is quite natural that a next buyer in the pipeline prefer to pay after detail understanding about the prior purchaser’s deal amount from the builder in order to ensure paying the most beneficiary lowest value and not as such the listed value.
Still, several provide handsome incentives to those buyers who make use of their choice of the title company and lenders are being offered. The rest will finish off the deal offering negotiations on upgrades and finishes. So, it is the responsibility of the buyer to be cautious while shopping around and must practice to get a minimum of two other lender quotes in prior arriving at a final decision.
Ask about the standard finishes
As a buyer, you should understand that all the developments you view in a model home are simply a high-end version of a standard home. Hence, you should question the builder regarding those options which will cover under the standard home, and which developments are upgrades and cost of each such upgrade.
It is recommended by most of the experts that you can enter home without any sort of upgrade and later you can hire a contractor for your requirement as it will cut down on the cost. Still, the one disadvantage of this option is that you have to pay out as cash wherein case if you avail service with the builder it will be cost along with your loan amount.
Ask the builder about their long-term plans in that layout
On the basis of the size of the land, the builder may prefer to make several subdivision plans. This may affect your decision to purchase.
For an instance, in case your seller has built a few homes and sold it and further if he or she plans to build another 30-50 homes and you being the first person planning to make a deal with him or her in the nearby location, it becomes necessary that you have to go through with loud construction crews for a prolonged span of time.
Ask about homeowners association and their rules and regulations
Every homeowners association has their own set of rules and regulations, conditions and restrictions, Declaration of Covenants and bylaws. Hence, prior purchasing, get these details from the builders and thoroughly review the same.
In most common, in case of infractions, the HOA assesses such homeowners pay penalties, but in certain cases, the HOA will be more restrictive during such scenario.
Ask the builder about the warranties they offer
In most cases, the builder will offer about a year of warranty for their workmanship and nearly 10 year warranty for the real estate structure.
Understand clearly about your warranty and those specifications that states those explicit coverage and those which will not be covered and information about the damage claiming limitations.
Ensure to receive manufacture’s warranties on the hot water heater, washer and the dryer, kitchen appliances, air conditioners and roof.
Ask for referring their past clients
It is always good to check with the past clients of a builder before vetting on them. Check with those references about how responsive was the builder when you address them with any concerns or change requests, will they be likely to avail their service again and so on.
Apart from the builder’s supply of past client’s details, you can also check with the neighbourhood that have prior been built by them.