Tips For Buying a New-Construction Home

Homebuilders are eager to sell their homes this spring, and many are offering incentives and even some price reductions.

So how do you find a good deal on a new home?

While homeowners looking to sell their property might balk at an offer that is too low and pull their home off the market, homebuilders have money invested in land and construction costs and can’t afford to just sit on the homes they build.

With a little research, anyone considering purchasing a new construction home can improve their chances of negotiating a better deal.

When considering an already-built new home, buyers should find out how long ago the home was built and how many residents are living in the development already. The bigger the inventory, the more leverage you’re going to have. The longer it has been on the market, the more leverage.

Another essential step is to check the price at which comparable homes in the development sold, but ignore transactions that are more than 60 days old.

It also is important not to put too much stock in the price of other, similar homes in the development that have yet to sell — an argument one might hear from a builder’s sales representative.

To structure an initial offer on a new construction home, one must weigh the recent comparable home prices, how many homes are left to be sold in the development and how long the home has been unsold.

But definitely make an offer that is below the asking price.

If you’re unsure about how to go about finding out the details we’ve highlighted here to help you get the best deal on a new home, contact us. We’ll be happy to explain other things to help you, and things to watch out for.