If you've decided to purchase a new home construction directly from the contractor, there are steps you should take to protect yourself, especially when purchasing a tract home. New construction homes allow you to personalize things such as color, flooring, and appliances. However, you do need to make sure that you don't get sold short on the transaction. Here are four tips you should follow when purchasing a new home construction.
Work With an Agent
When you tour the model home, you'll be greeted by a real estate agent. While it may appear that the agent is there to help you, the buyer, that's not actually the case. The on-site real estate agent is actually there to help the contractor sell their homes. Unfortunately, that means that you might not get the best deal when working with the on-site agent. To make sure that your interests are properly represented during the transaction, you need to work with your own real estate agent.
Find Your Own Lender
Contractors often have relationships with various lenders, particularly those that they tend to work with on a regular basis. While those lenders may be able to provide you with the loan you need for your purchase, they won't necessarily give you the best rates. Before you agree to work with a lender that the contractor has recommended, do your own homework. You may find that you can get a better deal by finding your own lender.
If you're going to purchase a tract home directly from the contractor and the tract is still in the construction phase, be sure to request incentives. Prior to construction, your contractor may be able to provide you with incentives such as appliance and flooring upgrades, or home security systems. These incentives are designed to provide you with a more attractive housing package. However, most contractors won't offer those incentives unless you specifically ask for them.
Insist on a Home Warranty
If you've decided to purchase a new construction home in a housing tract, be sure to insist on a home warranty. A home warranty will ensure that any defects in workmanship are covered for repairs or replacement. This is particularly important where the main operating systems, such as plumbing, heating, and air conditioning, are concerned.
Don't take chances with your new home purchase. If you're buying a tract home from a contractor, follow the tips provided here to ensure a problem-free transaction. And remember, a real estate agent can help you when you're looking to buy a single-family home.