Mistakes to Avoid When Buying New Construction
By Sawyer Timco
August 3, 2020
Buying a newly-constructed home can be a dream come true for many buyers. New properties in new communities can offer amazing amenities, safety features, and energy solutions. Here at Make a Nest, we love new construction, which is why our website is the #1 tool for finding properties straight from builders. Better yet, Make a Nest allows buyers to get a 1% cashback rebate when they purchase; you can create a free Make a Nest account here. Read on for our advice on the mistakes to avoid when buying new construction.
Know the difference between implied and express warranties.
Warranties from builders are commonly split between implied warranties and express warranties. Implied warranties, like the name sounds, are warranties that imply that the home will perform as promised for a certain period of time, normally close to 10 years. Since these warranties are implied, they are often in more vague terms than express warranties, and cover flaws in the home that hinder one’s ability to live safely in a home.
Express warranties are more set in stone, with specific terms as to what is covered and what isn’t.
According to David Jaffe, vice president of construction liability at the National Association of Home Builders, most builder warranties do not cover: appliances, ordinary wear and tear, flaws caused by an owner’s lack of maintenance, flaws from natural disasters, or flaws resulting from contractors or workers not associated with the builder.
Negotiate with Builders (or get a 1% rebate with Make a Nest!)
Many people think that buying from a builder is different from a pre-owned home in that they can’t negotiate, and this is simply not true. Because more than just the price can be negotiated, buying from a builder can commonly allow for even more negotiation than a pre-owned home. Upgrades, appliances, fences, and more can be added on if you play your cards right. Here are our best tips for leveraging your buying power with builders:
-Be prepared and okay with walking away from a builder
-If you can’t get the price to decrease, get the upgrades and features to increase
-The more finished a home is, the easier it is to negotiate
-Try not to get too attached to any individual home
Keep the future value of your home in mind, and try to increase it
Remember that a home is the biggest investment that you will ever make; treat it as such. Upgrades on new homes can be separated into those that increase and hold value, and those that you just really want. Try to find the few that straddle the line of both of these categories. Upgrading to hardwood floors is an example of an investment that will probably be worth it in the long run if you can afford it. Spending thousands of dollars on upscale cabinets with built-in sliding shelves is not.
Another thing to keep in mind is that even if you want to purchase an upgrade to your new home, it doesn’t necessarily have to be through the builder. It may turn out that contracting the work out to someone else will be cheaper, so be sure to look into that before making anything final.
That’s our 3 biggest mistakes to avoid when purchasing new construction. Again, if you want help finding your new home, and getting the best deal, sign up for a free Make a Nest account here to get a 1% rebate on your new nest.