New home construction includes both custom homes commissioned as a special build or spec (or “quick move-in”) homes that are completed by a developer and sold for the first time. It can also include a development of affordable starter homes on small lots as part of a walkable community.
Buying a new-construction home may mean that you’ll be paying for modern appliances, brand-new systems and a warranty that covers everything from plumbing to roof leaks. It’s important to know all of the costs associated with a new home to ensure that it’s a good fit for your budget.
Building Dreams from the Ground Up: A Comprehensive Guide to New Home Construction
If you’re considering a new construction home, it can be helpful to talk with existing residents in the neighborhood and attend community board meetings or online neighborhood groups for more insights into how well the developers and subcontractors work. Check out a builder’s reputation by looking for business reviews, feedback from the Better Business Bureau, and public records that may turn up lawsuits or fines.
It’s essential to have a mortgage lender who’s experienced with new construction to help guide you through the process and to explain mortgage options that may be available. Your real estate agent can recommend lenders, or you can search online for “new construction mortgage [city, state].” Once your home is nearing completion, be sure to request a final walk-through. This gives you an opportunity to familiarize yourself with your new home and discuss your responsibilities for upkeep, maintenance, and homeowner’s association dues.