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5 Tips for Buying a New Construction Home

Updated on January 16, 2011

The majority of people who buy a home will buy a home that was constructed years ago and has always been lived in by someone else. However, some people elect to buy a new construction home. This means that they will be the first to live in the home. This article provides five tips for people who are in this interesting position.

1. Make sure that you get the most up-to-date technology for your home. One of the major advantages of buying a new construction home in comparison with an older home is the fact that everything in it is brand new. This includes the technology used throughout the home. Take advantage of this fact by insisting that everything be as cutting-edge as possible. In particular, you will want to get green technology that saves you money in the home. For example, you may want to make sure that the home is equipped with water-saving devices in the bathroom and kitchen.

2. Get it in writing that the cost of the home inspection will be included in the price of the home.Every time that you buy a home the home needs to be professionally inspected. This is true for new construction homes. A lot of people don’t realize that, making the mistaken assumption that a brand new home is inspected in some other way during construction. The fact is that it’s inspected before you buy it. If those inspection costs aren’t included in the contract for the purchase of the home then you’ll be forced to pay extra out of pocket to cover those costs. Don’t let this pricey mistake happen to you!

3. Put your voice into what the home looks like.When you buy an old home, you are struck with what it already has in terms of its design. This isn’t the case when you buy a new construction home. The home hasn’t been built yet so you can give some input into the design of the home to create the house that you truly want to live in. If you’re buying a new construction home that has already been designed by someone else then get a design that you like. Even then, you can add your own input for the details of the home, such as which lighting to use throughout the space. Make sure that you work with a home construction company that is open to your input.

4. A new construction home is a long term investment. The value of your new construction home isn’t likely to rise rapidly in the first few years after you buy it. It will take time for it to gain value. For that reason, you should consider this to be a long term investment. You should buy a newly constructed home because you want to live in it for a long time. At the very least, you should have a backup plan to use the home for rental income if you do have to move out of it within a few years of buying it. Do not plan on buying it and then turning it around to sell it in a few years because you won’t make any profit. On the plus side, the home typically won’t lose a lot of value in those years either, so if you are forced to sell it you shouldn’t take a loss on the sale.

5. Use a realtor to complete the purchase of this home. A lot of people buying newly constructed homes make the mistake of working only with the company selling the home. However, that company is out to make the best deal for them. You want to have someone on your side to help you negotiate the best deal for you. A realtor is the person who can do that for you. It may cost you more to work with a realtor but it typically results in getting the home that is really right for you at the best price and terms possible.


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  • amybradley77 profile image


    7 years ago

    Good advise here, too. All of the people I know would absolutely agree with everything this page has to say. I grew up with a bunch of carpenters and even a building inspector all retired now. Thanks for sharing, we all could use the extra help today. A.B.

  • fucsia profile image


    7 years ago

    Buying a new construction home is an important choice, to make with attention, precaution, the help of professionals and friends. Thanks for your advice!


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