Q - What 5 Things Should All New Construction Buyers Know?

Here are five things you should know before buying a new construction home.

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Right now, I’m working with a client who is in the process of building a new home. We had been working with them for about four weeks showing resale homes, but they suddenly came across a new construction home they wanted to purchase. You might be wondering what the difference is between buying a resale home and a new construction home. Here are the main points you need to know:1. Base price. A base spec sheet for a new construction home will say that the home is worth x number of dollars. However, that number won’t include upgrades, landscaping, or anything additional you get added to the home. The base price is the bare minimum of features.2. Agent involvement. If I’m showing resale homes, I’m in complete control of the process and negotiations. For new homes, I’m pretty much out of the picture. I’ll get a referral from the builder, but I’m not able to actively represent you in a transaction like this.

The base price has the bare minimum of features.

3. Contract. You won’t have an appraisal or inspections with a new construction home. The only contingency you’ll really have is a financing contingency. 4. Warranty. On a resale, your warranty will cover the home and its appliances for a year. With a new home, you’ll have a builder’s warranty, which covers the actual construction but not the appliances. You’ll have to get a separate warranty for that, but they will also be brand-new.5. Taxes. New homes will have additional taxes, such as a Mello-Roos tax. They end up costing you more in taxes than a resale home.I hope these tips were helpful for you. If you have any questions for me about buying a home or anything else related to real estate, don’t hesitate to reach out via phone or email today. I look forward to hearing from you.