Five things you should know about new construction homes

The summer market is hot and inventory is low. As a result, many buyers are considering new construction homes. Here, we arm new homebuyers with insider information about the process, availability and mortgages.

The MLS

Not all builders advertise their homes on Multiple Listing Service, the service that real estate agents use to publish house listings online. Some builders may only advertise online, or within the new construction community. To make sure you aren’t missing out on any possibilities, be sure to work with an Edina Realty new construction specialist. Our New Homes Division will ensure you don’t miss your dream home.

Spec homes

Love the idea of a new construction home, but not sure you can wait long enough to move in? Consider a spec home. “Spec” or speculative homes are built based on the assumption of what a buyer would like to own.

“Because they are already built with most features input, buyers can move into a spec home in as little as 30-60 days instead of six months. And most spec homes aren’t fully finished, so buyers can often put their own touches on the property before moving in,” said Randy Bacchus, director of the Edina Realty New Homes Division.

An additional benefit of buying a spec home is that you can walk through the home before buying, instead of simply relying on the model home to represent your purchase.

Lenders

Many builders also have a recommended lender, or may require that you get preapproved through their lender. Other developments, especially if they are in the early planning stage, may require that you use a particular lender. Together with your REALTOR®, you can determine regulations and restrictions of each development so you know how to best proceed. In some cases, there may be discounts, promotions or contractual differences if you use the preferred lender, which could save you money up front or over the long-term.

Home warranties

Often, builders offer a home warranty with the purchase of a new construction home. By hiring a professional Realtor who can look over the warranty for any exclusions or third-party guarantees, you can be sure that you are fully protected when you buy a new home. You can also ask to see a copy of the warranty early on when you are looking at the model home.

Upgrades

If the builder only has one model available, be sure to ask what comes standard and what is considered an upgrade. Sometimes, model homes are truly the cream of the crop but standard homes may come without the finished basement or the granite countertops. Just as with any home purchase, you’ll have to determine what’s worth the extra money and what needs to wait.

Ready for a new home?

Get started today! The market is hot and the best availability of open lots, model homes and spec homes is right now. Call, email or chat to get connected with a local Realtor and mortgage loan officer who know new construction.