New Construction - Important Things To Know Before You Buy Or Build A Brand New Home

New Construction - Important Things To Know Before You Buy Or Build A Brand New Home

Important things to know before you Buy or Build a Brand New Home

Buying or building a brand new home can be one of the most satisfying experiences of your life. To have a dream and see it built right before your eyes is a feeling like no other. There are, however areas of caution that you should be aware of during the new home buying or building process.

In this report you'll find information about the Lender, the Builder, Design, Construction, and Completion. A good share of this information can be used in either case of building a home from scratch or buying an already completed new home.

My first and strongest suggestion is to find a Realtor to represent you that has new construction experience. Keep in mind that the listing agent in a new home project represents the builder. You may want to consider having your own representative. This agent works as a buffer between you and the builder/seller and his agent representative. This agent should be familiar with all the legal documentation needed when buying or building a new home, as well as being a good negotiator on your behalf.

1. The Lender: If financing will be needed to purchase your new home, the first step would be to contact a lending institution. This will give you an idea of the house you can afford and what your monthly payments will be. It's always best to get pre-approved for a loan rather than pre-qualified. Ask your Realtor for a good Lender referral.

2. The Builder: It's best to select a builder before choosing a lot or home design, as your builder can be a wealth of knowledge in these areas. A Realtor may also be helpful in locating lots in areas already developed. It's also a good idea to visit new homes in your area to get an idea what style and qualities would be acceptable to you, prior to choosing a builder. If you are going to build, I suggest interviewing at last three builders before making your final decision. The builder should be licensed with the State Builders Board, bonded, and insured. It's always a good idea to check with the Builders Board to see if the builder has any unresolved complaints on file. Ask to see examples of homes they have built and ask for references. With your builder and Realtor you will select a lot, home plan, and agree on a price. Be sure you have a contractual agreement before construction begins.

3. Design: There are many options for choosing a home design. You can hire an architect, home designer, purchase stock plans that can be modified, or your builder may have plans that can be modified to suit your needs.

4. Construction: You'll need to make many choices concerning the construction of your new home. Make these selections in a timely fashion so as not to delay construction. If you and your builder agree to make changes during construction, be sure those changes are in writing and signed by both you and your builder. Keep in touch with your builder at least once a week to discuss progress on your home. And try to stay within your budget. It's very easy to overspend a little on each item, which eventually can add up to a lot of money.

5. Completion: Typically after the home is completed the builder will take you on a walk-through inspection. This walk-through is done to learn the operations of the home and to note any defects in need of correction before you move in. The builder should go over any warranty program he subscribes to, or inform you of the one year implied warranty dictated by state law. Once repairs are complete, and your deed is recorded, it's time to move in. Start planning a House Warming Party!

I hope you have found this information helpful. As a Realtor with over 32 years of new construction experience, I'm here to help you when you need it. Feel free to give me a call: Mark Rieger, (541) 480-7441 or send me an email at mark@centraloregonliving.com if you have any questions.