5 Things Homebuyers Need to Know About Buying New Construction Homes
Ahhhhh, the feeling of a brand new home. All mine. No one has ever lived here before. It’s perfect.
Well, truth be told, that’s a fantasy. To maximize the feeling above, you will have to be on top of your game. Here are some tips and facts about new construction homes.
The Real Estate Purchase Contract for New Construction is different from the standard Real Estate Purchase Contract. Read it carefully with your agent. There are more deadlines involved, different phases of earnest money and longer deadlines. These deadlines mean no more changes can be made. Crucial: Every single change, no matter how big or small, needs to be in writing. If they are not, you and the contractor will no longer be friends. Please avoid the “he said, she said” game and put everything in writing.
You will definitely need a home inspection with someone who is experienced and qualified in new construction. A qualified home inspector will help you form a punch list of items that need to be fixed and resolved.
Make sure you received and READ the City or County sign offs on inspections and permits, ensuring your home is up to code.
Expect two appraisals. The lender will want to know that the work was completed in the quality, as promised. One appraisal will be after you go under contract, the second will be before you close on the purchase.
Expect there to be a long punch list, because, let’s face it, no contractor is perfect. Blue painter’s tape will be your best friend. Mark any areas in the home that need attention: scratches on floors, walls, and cupboards; paint spills, sticking doors, broken glass, or the wrong color stain on the kitchen floors. Anything is possible. Bring your phone and take photos and videos. Follow up with the contractor, in writing, with the punch list items that need to be addressed. Always be kind, but stay on him/her.
Communication with your contractor is key. Managing your expectations is essential. If the home is expected to be completed in 3 months, count on 5 months before your get your CO (Certificate of Occupancy).
If you follow these guidelines and stay vigilant, your dream of feeling “ahhhhhh, a brand new home”, will come true as seamlessly as possible. If you are considering purchasing a new construction home in Park City, please contact me to represent you through the process by calling 801-550-7563.