| By :
Jamie Simpson
Buying new build homes can evoke both excitement and nervousness. Being armed with the proper knowledge can help reduce the anxiety and provide a sense of confidence and control. This article will explore the top 6 items a buyer should know before their first visit to the sales office. These are: Location/home density, incentives, upgrades, credit, down payment, and third party professionals. What a location looks like today is not necessarily what it will look like tomorrow. In selecting a location on which to build a home, one should consider how the surrounding area may later change. Five years from now, will there be a mall across the street? Is this lot near a flood plain? What will the density of homes be once this area is built out? These can affect the future property value and the owner's level of satisfaction. Most builders offer buyer incentives that can be significant. Offering $10,000 of additional upgrades for selecting specific lots and significant reduction in sale price on completed new build homes not purchased are just a few. Incentives can change on a daily basis, so be certain to ask the salesperson what they currently offer. Upgrades are optional items the buyer can select, such as carpet quality, floor coverings, and exterior surface materials. Because the home represents an investment, one should select as many upgrades as possible in order to increase the home's value. One's credit plays a major role, as it is what potential lenders see when considering whether or not to finance the buyer. A great idea is to hire the services of a credit repair firm at least 6 months before attempting to buy a build home, as the process of credit correction takes time. Purchasing new build homes requires a down payment, but saving 10% of the purchase price can be challenging. There are two routes one should explore that can reduce or eliminate the need for a down payment. If the buyer has a military background, they may use their VA benefit towards the purchase. HUD is another avenue of financing that can reduce the required down payment to 3%! Although not typically employed when buying a build home, a Realtor CAN play a vital role, and at NO cost to the buyer! Since the builder already has Realtor fees built in to the sale price, the buyer should opt to employ a Realtor. Realtors will act as the buyer's advocate, and ensure the buyer is treated fairly. Another professional that should be located early in the process is a home inspector. Though they typically inspect older homes, many are also qualified to inspect new home construction, and can ensure that the home is sound as it is being built. Buying a new build home may be daunting to first time buyers, but it need not be. Armed with the right information, and enlisting the aid of a Realtor, the experience can be quite pleasant!
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