Fridays with the Fiddle Fig: Tired of old houses?
"I don't like any of the old houses I'm seeing on the market, I want to buy new construction."
It's not common in San Diego, but we do have clients sometimes who are more interested in new construction homes. Whether you know that's what you want or just interested in it as an option, here are 5 things to keep in mind when looking to purchase a newly constructed home.
1) Get a realtor.
I know, I know, obviously a realtor will say this. But new construction offices want you to think you don't need a realtor and that's not true. You'll want someone who will be on your side throughout this process and new construction contracts are written to protect the builder, not you.
2) The price is negotiable.
It is not common knowledge but the asking price on new construction is actually negotiable. I have found many people, even other realtors, who don't know this.
3) What you see is not always what you get.
The models you see typically outfitted with all the upgrades and fancy touches are typically ADDED TO the purchase price that is advertised. It's important to go through everything up front to make sure you understand all the costs associated with the add ons.
4) People make mistakes.
Even with new construction things get missed or are installed incorrectly. It is typical to have a few opportunities to go over things at the property and make sure the builder did everything they agreed to do. This is called blue taping. You mark the items that need attention before actually owning the property.
5) Builder defects.
The builder is liable for any structural defects for 10 years. It is important to know this in case something happens within this time frame.
As you can see a lot goes into buying new construction. It's not like buying a car, although they want you to feel like it is. This is a huge purchase, get representation by an agent who knows the ins and outs of this process.