Purchasing a New Home Shouldn't be an Impulse Purchase
I have a love/hate relationship with new construction. It's easy to sell, but really complicated for the average buyer. It really comes down to mis-perceptions by the buying community.
Here are the big four:
It's a New Home, so it Must be A Good Home
Right off the bat, we've got issues. Not all new construction is good. Most new construction can be good, but you have to really be aware of where the shortcomings can be, and address them before that offer gets signed. Fortunately, most towns in my area have pretty good building codes, which reduces really sub-standard construction risk. But there are no codes for the quality of the materials on the inside, and that's where most buyers need to be careful.
Anything that goes wrong on a new construction home will be covered under the warranty
This one is usually not true either. Most builders will make "best efforts" to right the problem. But that's a LONG way from saying you're totally covered. And some builders will fight you tooth and nail even for legitimate issues. Usually, the warranties are pretty well spelled out in the Purchase & Sale, but few buyers read them closely, or think critically about problems they might have down the road. Most of us are optimists, after all, and we want the shiny new house to be perfect, so we'll think positive. That works, right?
At least I know what the value is of my New Construction Home
No, not usually. You know what you paid. You know what the buyers paid before on other homes in the neighborhood before you. But did you have an in depth discussion about the lot? Is it less nice than the comparables you looked at? Do you really have a home/floorplan that will sell well in the future? Shared driveways, lots with steep slopes, all of these will be impacted when the house goes to re-sale, but often times builders are able to sell these homes regardless of lot impacts. Buyers should be very cautious when evaluating what has been purchased by others, versus what they are purchasing. It's not JUST about the house!
The Builder of My New Home Is a Great Guy, I can't Wait to Work With Him
Most of the builders I know ARE great guys. But this is a business, and a tough one. Builders, especially successful ones, have seen it all, and make no mistake: they intend to make money. They have likely been through dozens, maybe hundreds of transactions, and that experience can be used against the consumer if there's a conflict. Many buyers don't give a second thought to buying direct, but most are far out matched in terms of experience. Land development, construction, decorating, plumbing, landscaping, real estate law, and architecture are all very specialized industries, and to keep everyone playing fair you had best be an expert in each one if you plan on going direct. Knowing the difference between 2x6 and 2x4 construction, or having installed a garbage disposal doesn't mean you can read a spec sheet and see the gaps. It's hard to get the horses back inside the fence once the door is open, so be prepared before that first sit down.
*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.
