Published June 2, 2022
5 Things to Know Before Purchasing New Construction
With so many new homes going up and many different neighborhoods forming, new construction is a great option for many buyers. However, new construction comes with its own set of considerations and our team wants to ensure you will be well informed! Below are 5 things you should know before purchasing a new construction home.
1. Gather Community Fees & Benefits
Because new construction neighborhoods often offer an abundance of amenities, you will also encounter fees that come along with these homes. HOA (Homeowner’s Association) and CDD (Community Development District) fees are two possible costs to be familiar with. It is important to know what type of fee it is, how much the fees will be, how often they are billed, and perhaps most importantly, what benefits they provide for the cost. HOAs can deliver great benefits to you and your family, but consider how much use you will get out of them and if you feel the fee being charged is a fair price.
2. Keep Realistic Timelines in Mind
Timelines for new construction can vary greatly and the variability hinges on many different factors. There may be hold-ups with materials, but also with labor. Crews may have a certain order of building that is predetermined and your neighborhood may be waiting for that crew to reach them. Additionally, some neighborhoods will be on an overall faster construction timeline than others, so it is important to get a realistic idea of what your home’s timeline may be. It tends to be much easier to assume that construction will run long than to assume it will run on-time or short. Encourage your builder to give you a realistic, and not just optimistic, timeline to help you plan on the safe-side.
3. Look Into Incentives Where Applicable
In the market right now there may not be a ton of incentives, but in general builders will often use incentives to encourage buyers to build with them. Many times these incentives involve the use of their preferred lender or title company. With this in mind, inquire about incentives and look carefully at the terms of what is being offered.
4. Consider Current & Future School Zones
Make sure you consider what school zone your neighborhood will reside in and what school your kids may attend based on the zoning. We encourage you to source this information from the school district and not from the builder. This is because builders will often gift land to the districts to build new schools, but they do not have control over what exactly the district will build on the plot of land. When looking into moving into a neighborhood that has land set aside for the school district, make sure you don’t assume what will be placed there in the future, or how soon it will be placed.
5. Work With an Experienced Agent
Arguably the most important on this list is to work with an agent! Agents will guide you through the above information plus so much more, and as the buyer, you don’t have to pay the commission out of your pocket. Agents have been able to walk through the new construction process many more times than the average homeowner and will have insight into what questions to ask, when to ask them, and how to get the best deals with builders. We cannot encourage you enough to work with a professional when buying new construction! Wisdom comes from experiences, and we’ve had a lot of them!
Of course, there is so much more to new construction than what is listed here and we would be delighted to answer any additional questions you may have. Please send us a call or text at 904.204.9494 if you’d like to discuss anything about new construction with us. Thank you for stopping by our blog and we look forward to speaking with you soon!
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