Buying a new construction home offers a lot of financial benefits. Building a new home is a great opportunity to design a home that’s perfect for you, and it’ll allow you to save money throughout the life of the loan. But, there are a lot of common misconceptions about building or buying a new home. Don’t be misinformed, get educated and read some tips of the trade below.
Base Price:
When you begin looking into newly constructed homes, you will see something called a “base price.” This base price is used to establish a starting point for pricing; it begins with a base-line of the home cost and standard features. This price may vary from builder to builder as they all have different floor plans and standard features.
Keep in mind, the base price does not include the lot price, additional costs such as upgrades, or closing costs.
To ensure you end up with the features you want, at a price that suits your lifestyle needs, work with your builder on what features are included in the base price of your preferred home. Your builder wants to make you happy; they’ll work with you until you’re satisfied with the home amenities included at the price you’ve agreed on.
Closing Costs:
Just like buying any other home, buying a new construction home comes with closing costs you need to be aware of and plan for accordingly. One of the big perks of buying a new construction home is that you can often work with the builder’s preferred lender, which can give you credit towards closing costs.
Another benefit of buying new construction is that common closing fees such as title and escrow fees are lower because your new home isn’t going to have the kind of structural wear and tear that an existing home is likely to have.
Upgrades:
Upgrading features like counter tops and flooring may add to the cost of the home. The plus side is that you have more control over the final cost of the home, depending on what upgrades are must-haves versus what you can live without.
Keep in mind that including upgrades in the construction process is often cheaper than upgrading your new home later on. For example, replacing laminate flooring with hardwood during construction will make it much easier for you. While you will pay the difference in material costs, you won’t have to deal with the headache of hiring a floor installer, paying installation fees, and possibly acquiring permits, which can all add up.
Exterior Costs:
When buying new construction, there are also landscaping (or exterior) costs to consider. This allows you to design the exterior of the home in a way that meets your specific needs. Want to save money on the water bill each month, and have a more environmentally friendly yard? You can elect for eco-friendly landscaping from the beginning of the construction process and avoid the mess and hassle of redoing an existing outdoor space.
Having control over the landscaping of your home allows you to save money and avoid extra maintenance that may come with certain outdoor features that don’t meet your lifestyle needs.
The entire process of buying a new construction home allows you to have as much (or as little) control over the project as you want. Start the process of buying your new construction home today by finding New Home Builders or New Home Communities near you.