Real Estate Matters
By Elisa Jo Eagan
Among the many unexpected effects of the COVID-19 pandemic has been an unprecedented level of demand from homebuyers coupled with severe inventory shortages in the market. In order to overcome this ongoing challenge, many buyers are turning to new construction as a way to find the home they want in the location of their choice. Here are some tips for making sure that your new home purchase provides everything you’re hoping for while staying on time and on budget.
1. Determine your priorities at the start
It’s important for you to decide why you’re looking for new construction. Are you simply trying to overcome low inventory in your chosen market? Are you more interested in the personalization opportunities available with new construction? Is your budget the most important consideration or are you flexible enough to incorporate additional features that you find appealing?
2. Optimize the location and lot
When you’re able to choose your location and the style of your new construction home, it pays to think through the placement and orientation of your home on the lot. How will the front elevation relate to the street and to the neighbors? Think through curb appeal and livability when determining how your home will be situated.
3. Do your homework
All builders are not created equal, so it pays to check out the builder you’re thinking of using. Talk to a trusted real estate professional and find out what they’ve heard about your chosen builder. Talk to previous clients and look at online reviews.
4. Explore builder-provided discounts and incentives
In some cases, your builder may provide special offers if you use their in-house lender or if you close by a certain time. They may have spec homes that have fallen through during the contract period and which they would be willing to let go in exchange for a quick sale.
5. Be careful when it comes to extras and upgrades
The biggest budget-buster for most new construction projects is the list of optional features and upgrades along with adjustments and changes during the building process. While you will no doubt want to take advantage of the opportunity to add some upgrades during the process, be smart about which ones you choose. Here are a list of times when it makes sense to choose the builder upgrade option:
When the upgrade involves a structural change that would be easier and cheaper to implement during the building process rather than after.
When the upgrade is something that you’ll particularly care about and enjoy using every day, like those in a kitchen or owner’s suite.
When the upgrade will have a significant long-term impact on the home’s resale value or energy efficiency.
When the cost through the builder is close to that charged by a contractor.
6. Don’t be afraid to negotiate
Many people falsely believe that there is no room for negotiation when working with a builder, but in fact, there are many areas open for negotiation other than overall price. You may be able to negotiate a reduced interest rate or reduced closing costs through an affiliated lender or title company, as well as a selection of upgrades and optional features.
7. Ensure everything is in writing
When you’re talking through your options with your builder or their representative, you may talk about options and prices in an informal way. Just remember that an assurance means nothing if it’s not in writing.
8. Don’t forgo the home inspection
Just because it’s new construction doesn’t mean that you don’t need an inspection. Accidents happen and errors occur. A real estate professional can recommend a well-qualified home inspector who’ll provide you with a comprehensive report of the condition of the property and what still needs to be completed before closing.
9. Keep track of guarantees and warranties
There will be guarantees and warranties for the building itself as well as its systems, appliances, and other features. You’ll need to keep track of all of these, along with their specific terms and requirements, in order to make sure that you don’t accidentally void them or wait too long to take advantage of the repairs and benefits they provide.
Elisa Jo Eagan ABR, CRS, GRI Military Specialist
Realtor-Broker Associate
BALSLEY LOSCO REALTY
1630 New Road
Northfield, New Jersey 08225
EJCE@aol.com
www.AtlanticCapeHomes.com
Full Time Awarded Professional Realtor Since 1985.
