10 Tips for Buying New Construction

Buying new construction is a different game:

• Everything is new
• You're buying from the person who built it, not the person who called it home
• Often, the property is just one of many they are trying to sell

Here are ten things to consider, if you're looking to buy a new house or condo:

1. Hire an agent
   One that isn't affiliated with the builder and has experience in new construction.
   
   
2. Be creative during negotiations
   Builders don't like to drop their prices. Instead, ask your agent what other options are available.
   
   
3. Get it in writing
   Don't sign until everything has been negotiated, agreed upon and written into the contract.
   
   
4. Be wary of upgrades
   They're where builders make the most profit. Don't take upgrades you don't want or can't afford.
   
   
5. Research the builder
   Visit other developments and talk to home-owners. Google the developer for reviews, testimonials and news.
   
   
6. Ask if there's a guarantee
   Some builders may reserve the right to change the completion date if the home you're buying isn't completed. Ask if there's a guarantee that the home will be ready do you have the home will be ready on time?
   
   
7. Get the house inspected
   New homes have problems too. Hire an inspector to make sure the house is safe and up to code.
   
   
8. Bumper-to-bumper coverage
   New homes should come with a warranty from the builder. Know what is and isn't covered and for how long.
   
   
9. Look to the future
   Check with the city to see what is planned for the surrounding area. If you have a view, will it still be there in 5 years?
   
   
10. Find your own lender
    Don't use the builder's lender. Shop around for the loan that is best for you, not them.

Touring new construction

• Bring your agent
• Get a pre-approval letter from a bank

Buying a new condo

• Beware low condo fees
• Tips for negotiating for a new condo
• Paying taxes on a new condo can be tricky

Things You Should Know

• Why builders are reluctant to drop their prices
• What's a pre-sale?
• Have the home inspected
• How to initiate contact with a builder
• What's a Variable Office Commission (VOC)?