3 [MORE] Things To Consider When Buying A New Construction Home In Cary, NC
Buying a resale house versus new construction is a very different process.
For one, builders don’t like to negotiate on their base prices. They have to keep them similar because they’re selling lots of the same models. As long as people are buying their homes, they have no reason to negotiate on the price.
While they may not negotiate on the price, builders are often more receptive to negotiate on things or credits. So instead of asking for a $10,000 reduction in price of the house, have your agent asked for a $10,000 credit at the design center that you can use for designing your dream kitchen.
You can also ask for a closing cost contribution and not every builder is going to give you credits. It depends on how popular the product is and the climate of the market, but it certainly doesn’t hurt to ask. So be sure to involve your agent prior to writing up the purchase contract.
Here’s another big item to pay particular attention to, closing costs. Every builder is different, but no matter which one you go with pay very close attention to the closing costs. Many large builders push all of the closing costs except for a few real estate fees over to the buyer side. This can be thousands of dollars in extra closing costs that you wouldn’t be paying if you were purchasing a resale home.
Finally, if you have a home to sell and need to sell it to get into your new home, be careful as to the timeline, and think about a possible rent back from your new buyer.
And that brings me to new construction timeline expectations. Say your builder estimates that it’ll take four months to build your house. That is their goal, but in reality, they can never be entirely sure when that house is going to be completed. Builders have to deal with weather issues, materials being supplied in a timely manner, contractors doing work correctly, permits inspections, and so much more. It’s a lot to manage and everything doesn’t always move along smoothly. So timing the sale of your current home and having an understanding of building timelines, is critically important for a smooth transaction.
Be sure to reach out to us if you’re thinking about buying new construction, before you walk into a model home or a new construction sales office. The sales agent will ask you to register with them. If you register without your agent, you’re essentially waiving your ability to have an agent represent you, unless you want to pay for their fees out of your own pocket. And don’t forget the agent of the sales office is there to protect and negotiate on behalf of the builder. So you should have someone in your corner too. If you register at the sales office with your agent, it doesn’t cost you any more money and you’ll likely have a much better outcome with a lot less stress during the building process. I hope this information helps all of you out there thinking about buying a new construction home.