If you’re considering a new construction build, there are a few things that differ from purchasing a typical property:
Finding a New Construction Home
Before the showing, we will want to ask how far along the project is, & if there is any room for customization. We’ll also ask for a spec sheet — this details what the developer plans for the finishes (i.e., appliances, cabinets, countertops, etc.). If they don’t have one, we will request that they make one.
We will also ask when the expected completion date is. New construction is often delayed — so keep that in mind with your timeline!
Negotiation is different from a standard purchase – most likely, the price will not be negotiable. Sometimes if it’s a weird market or the condo has been listed for a while, you can negotiate on price, but even then, don’t expect a steep discount. Developers are all about the bottom line, so they tend to hold out for their number.
Developers typically do the bare bones of construction and minimal extras. You may be able to negotiate things like window treatments, building out closets, customizing finishes, & installing towel rods. If you don’t negotiate those items, budget for them!
You will hire a licensed inspector to conduct the inspection once the home is complete (or close to it). We will also bring blue painter’s tape to mark anything that needs to be addressed prior to closing. This can include cosmetic items like scuffed paint & uneven doors. You are paying a premium for new construction, so you are allowed to expect perfection!
We will send the “punch list” to the developer, and they will address prior to closing.
As in a typical purchase, final walkthrough happens right before closing. If anything isn’t perfect, we will create another punch list for the developer to address. All parties will sign & agree to the list — you may close prior to all additional items being completed, but developers will have a specified timeframe to complete these additional items.
Typically, the builder will offer a one-year warranty against structural or other defects from the closing date. This protects you from any issues with the workmanship in the home. It’s best to find any issues before the final walkthrough, as the builder is more motivated to correct them. Still, the warranty is there for peace of mind.
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