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Dream Houses: Getting What You've Always Wanted
When it comes to dream houses, many people find the only way they can get what they truly want is go new. Whether it's buying a house already built "on spec", having a semicustom home built as part of a development and choosing from a set palette of upgrades and finishes, or having a purely custom home designed and built to your specifications. However, though finally getting your dream house is within your reach, don't get so caught up in the granite countertops and brand new crown moulding that you forget to make a good deal. Always evaluate the pros and cons of a new home before making the leap into a new chapter of your life. For instance, new homes are typically far from the city center; will you mind the commute? Are you willing to work to get a new lawn into existence, and can you wait more than a decade for sapling trees to mature? Will the cookie-cutter nature of new subdivisions drive you nuts? New houses tend to be built right on top of each other, do you mind the nearness and potential lack of privacy? Evaluate the new neighborhood by checking with the developer about potential homeowners' association (HOA) fees and rules. Some can be incredibly expensive, not to mention strict. Storage sheds, certain paint colors or finish materials, solar panels or even gardens may be out of compliance. It's extremely important to fiind out if the HOA can assess penalties for infractions, as this may cost you hundreds and can compromise the ownership of your home if ignored. Find out whether cable and Internet are readily available and from which companies. Your new house may be wired for cable but the cable company may not service to your neighborhood, especially if you're in a rural neighborhood. Another important point to keep in mind is that If the development is still under construction, you could be dealing with huge equipment like bulldozers and facing power saw noise at the break of dawn. Is this something that would negatively affect you and your family? If so, is the development nearing completion, or is this something that may go on for a while? Beware of putting too much trust in the real estate agents who are working to sell new homes. They work for the builder, not for you. They may be trying to hit a quota, rather than help you make the right decision for you and your family. In addition, many states regulate how agents deal with new subdivisions. If you do have your own agent, tell them immediately that you're interested in looking at new homes. They have to accompany you on your first visit to any new subdivision or otherwise the builder's sales rep will get the full commission if you buy a home there. Do your research to ensure there are no complaints on file against your builder's company. Ask your agent if the builder has a good reputation in the local community. You can also visit your builder's previously constructed homes to get a perspective on whether their craftsmanship has stood up to time, use and weather. Going for upgrades? Be informed if you choose this route, since builders often rake in the cash on upgrades because they can get parts and labor relatively cheaply. Markups can be huge, so carefully research each option you're considering to see if perhaps it could be cheaper to bid it out after you move in. Builders usually need to sell quickly to make a profit, so if you're stuck in a price war, get them to throw in the upgrades you want at a reduced cost as a way to get more value that's appealing to both sides. Inspections are always important. You should never assume that because a home is new that it isn't going to have defects. Make your final sales contract dependent on a final inspection by a professional you hire, and if possible have the home inspected during each phase of building when potential problems are easier to spot. If your builder objects to this, consider it a red flag. Municipal inspections for code violations are nowhere near as thorough as an independent professional inspection is. Lastly, be sure to protect yourself with warranties. New homes come with an implied warranty from the builder stipulating that any major defect of the structural integrity of the home must be repaired, but you should ask for a builder's warranty for a period of time following move-in that covers any defects in craftsmanship. Ideally, this warranty should be backed by insurance. Make sure any warranty you receive explicitly states what is covered and what isn't, and what the limitations for damages are. It may seem like this route to your dream house is difficult, but it's likely you're taking out a significant mortgage to ensure you get what you want. Taking precautions is well worth the wait to your perfect home! |
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