The Treasure Valley housing market continues to grow at a rapid pace. Because of this, sales of new construction homes are steadily increasing, while sales of existing homes are on the decline simply from a lack of inventory. There are pros and cons to buying both new construction and existing homes but here are some tips to consider when buying new construction:
1. Get an inspection – although everything should be built to code and brand new, an inspection will provide you with piece of mind. Many builders will also offer a limited warranty on new homes, but the inspection will give you the opportunity to address any issues prior to taking ownership and prevent having to address issues after you’ve moved in.
2. Establish good communication - be clear with your agent, the builders, and your lender from the beginning. Ask for regular updates on a cadence that makes you comfortable. Make sure you understand what the next step is along the way, and don’t be shy about following up.
3.Understand pricing - generally speaking, builders are reluctant to negotiate pricing on new construction. Prices are established based on comparable sales of other new homes in the area and reducing the sales price could have a negative impact on future sales. However, there are more opportunities for other kinds of incentives such as closing costs or adding/upgrading items like fencing, landscaping, or finishes.
4.Be Flexible - Timing can be fluid as projects are impacted by weather, permitting, etc. Be prepared to be flexible as there may be opportunities to close earlier that planned, or to have to push a closing back to accommodate issues that come up. This is where that good communication really comes into play!
5.Hire a great agent - Working directly with a builder may seem easier, like you are cutting out the middle man or reducing complexity in a transaction. However, you want to have someone in your corner whose responsibility it is to keep YOUR best interests in mind. Having an agent provides you with a direct line to someone whose job it is to keep the transaction going and provide counsel during what can be a stressful – albeit exciting time.
Stephanie Parrish
208-995-6121
sparrish@atova.com