The purchase process for a new construction home can be more complicated than buying an existing home. Working with an experienced realtor who routinely deals with new constructions is essential.
They can help you choose a builder, negotiate a price, and ensure you get everything you want in your home without overstretching your budget.
Work With a Realtor
The home-buying process can be intimidating for first-time buyers. However, a real estate professional can help make the journey less stressful.
Ask for referrals from family, friends, and co-workers to find a realtor knowledgeable about the area you’re interested in, who speaks your language, or who meets other criteria you have. The agent you work with will act as your advocate during the entire transaction, including negotiating prices and conditions.
It is essential to understand the homeowner’s association (HOA) policy if buying a new construction Wichita, as this may affect your purchase. Additionally, it would help if you inquired about HOA fees and how they’re billed. Lastly, it’s essential to determine the amount of time you have before closing on your current property and moving into the new one.
Visit Model Homes
Depending on the builder and the development, model homes may be available to tour before the homes in the neighborhood are completed. This is an excellent way for potential buyers to get an idea of the floor plan, upgrades, and other features they might be interested in.
Model homes are usually staged with elegant decor, fresh flowers, and even the scent of cookies. However, it’s essential to see past the decorations and staging and look at the house’s layout, construction quality, and options/upgrades.
It’s also good to ask your realtor about the builder’s reputation and previous customer experiences. This information can help you make the best decision about whether or not to buy a model home. A reputable builder should be fine providing references and testimonials.
Work With a Lender
The homebuying process is a little different for new construction homes. You will likely sign a builder contract and may have to wait until the home is completed to close your loan. This can create a challenge if you’re selling your existing home and have to find temporary housing for the months between.
Additionally, the home builder often has a preferred lender they work with. However, it’s always a good idea to get pre-approved for a mortgage from another lender, giving you more options to choose which mortgage company to work with. Your lender must also review various financial records, including two years of tax returns (if self-employed), bank accounts, and 401(K) assets. Then, they’ll crunch the numbers and present you with loan scenarios that fit your credit profile and down payment goals.
Negotiate
Building a new home is expensive, and there’s often less room for negotiating the price than with existing homes. That’s why finding a real estate agent familiar with buying new construction is so important. They can help you negotiate discounts and complimentary upgrades like flooring and appliances. And they can help you read and understand your builder’s warranty and completion timeline.
Effective negotiators can identify and leverage the seller’s underlying motivations, which helps ensure a mutually beneficial deal for everyone involved.
They can mirror others’ tone, speech, and body language to foster trust and empathy. This helps them create a more open, productive conversation.
Get Pre-Approved
The mortgage preapproval process is the first strategic step in your home buying journey. It clarifies your budget constraints and enhances your credibility as an attractive buyer to sellers.
The process is simple, and you can complete it online or with a builder’s preferred lender. You’ll need to provide documentation throughout the mortgage approval process, such as bank statements and pay stubs.
In today’s competitive real estate market, buyers need to get pre-approved. Show seriousness in home buying, avoiding love for unaffordable homes. Additionally, it may speed up the closing process once you find your dream home.
