When people hear the term “new constructions,” they often think of a brand-new home being built. New builds are what it sounds like – a new house that hasn’t been fully lived in yet. New constructions can be either part of a development, or you might own a new construction built on a piece of property that you’ve purchased. Although these homes are often referred to as “development” homes, they can also be resales. Resales are simply homes which have already been live in before.
The difference between a new construction and a resale is basically that one involves some type of financing or equity. With new constructions, most buyers (even first time buyers) take out a loan. This loan is typically for the total cost of the home, as well as any related payments. After the loan has been paid off, the new home owner then becomes the property owner. If there are no takers, the home stays in the owner’s name until it sells.
With new constructions, the buyer typically goes into a contract with a builder and the builder is responsible for making sure that the buyers get what they want. In many cases, this includes negotiating the price, choosing the lot in which the house will be built on, and completing the various phases of construction. Because there’s no pre-sale reservation stage associated with these homes, buyers are able to go into contract without worrying about if they can afford it or not. Of course, when the time comes to sign the contract for purchase, the buyer typically must commit to a significant down payment.
There are many benefits to buying new constructions. One is that in many cases, you’ll find foreclosed homes available at drastically lower prices than you could find with a resale home. In addition, new construction houses often come with a built-in resale value. This is because the builder keeps all of the improvements that he or she makes to the home, along with any reserves that may be built into the resale contract. These reserves are generally tax credits that are applied to the final price of the home.
Another benefit to buying new constructions is that buyers have much more leeway when it comes to getting all of the necessary paperwork completed. Because builders offer builder warranty plans on their projects, buyers can obtain a plan at any point, instead of waiting for the start of the construction process. Buyers can also request to receive an inspection report on the property once the house is complete. This is a very important step, as it allows the new builder to make any necessary changes before closing.
There are a few other advantages to buying new constructions, especially when buyers are looking to save money in some areas. One of the best new home staging tips is to think about the room sizes, number of bedrooms and bathrooms, and square footage when considering the design elements of the new home. Buyers should also keep in mind the existing features that they can see from the curb. This includes floor coverings, fixtures, furniture, wallpaper, paint, trim and accessories.
It’s also important to look at the overall condition of any newly constructed home. As a buyer, it’s important to ensure that the builder has taken all necessary steps to make the house appealing and safe. A quick visual inspection can reveal minor issues that need attention right away. For example, if a unit has loose carpet or other types of shoddy work, it could be quickly repaired without the cost of a large remodel. The buyer can negotiate with the developer to make sure that the unit comes with a builder’s warranty plan, and that the buyer will be responsible for all repair costs.
New home owners can find many valuable resources online to help them determine if new construction is the right choice for them. When researching different homes and builders, buyers should pay close attention to the sales presentations. This is where they’ll get a real feel for how a particular property and builder show true craftsmanship. Buyers should also ask their real estate professional about reservation agreements, pre-construction loans, and other aspects of new home construction. Once buyers find a number of homes they like, they’ll be able to weigh the pros and cons and make an informed decision on which new dwelling will best suit their needs.