New Home buyers due diligence and vigilance should be addressed by buyers or their agent prior to a successful closing especially when purchasing a newly constructed home. The following points of interest should be on your agents’ radar:Ask for a sample of the builder’s contract. Most builders have their own distinct forms and contracts contrary from company to company.
Ask for clarification on the mortgage processing options and discounts. Determine whether you have the option to select your own mortgage company. And, what are the consequences if you decide to seek financing elsewhere.
Ask for clarification of home warranty coverage. Home warranty contract are often issued by several third party companies, e.g. HMS and AHS.
Obtain a list of costs. Determine what is standard versus upgrade. And, the cost of each upgrade.
Inspection for defects. New homes are not flawless. The builder may offer a final walk through inspection with the staff. Request an inspection from a separate company.
Check out the neighborhoods. Review county records to learn what’s being built on adjacent land.
Consider HOA fees. What happens if the builder underestimates HOA Fees and costs skyrocket after development is completed? Visit a builder’s previously completed development and gauge home owners’ satisfaction with fees.
Learn about nearby closings. Review public records to see if the developer may be prone to dumping unsold properties at auction, meaning that recently sold homes’ values may drop.
And, be sure the sales manager documents the closing cost incentive or other perks that may be part of the transaction.
If you need buyer’s agency representation or other professional real estate advice prior to purchasing your dream home – Give us a call today at 301-483-8073. We are always available to assist you!
Source: Realtor Mag – September/October 2015
