Buying new doesn't mean there are no surprises.
One of the attractions of building a new home is the idea that everything will be new, clean and built exactly the way you expect. But new construction comes with its own set of decisions, details and questions.
Most builders have a defined process, standard features, upgrade options and warranty procedures. Your job as the buyer is to understand those details before assumptions turn into expensive surprises.
Here are three conversations worth having early.
1. Ask exactly what's included—and what's considered an upgrade
The model home can be one of the best sales tools a builder has. It can also contain finishes, fixtures and features that aren't included in the standard price of the home you're considering.
Before making your decision, ask the builder to clearly identify what is standard and what is an upgrade.
Pay particular attention to items such as flooring, countertops, cabinets, appliances, lighting, plumbing fixtures, landscaping, exterior features and technology packages.
Don't rely solely on what you see in the model.
What to do: Ask for the standard-features list and available options in writing. If something matters to you, make sure you understand whether it is included before you sign.
2. Ask what you can inspect during construction
A new home should still be inspected.
Municipal inspections and a builder's quality-control process serve important purposes, but they aren't necessarily substitutes for an independent inspection performed for you as the buyer.
Ask whether your contract allows independent inspections and at which stages they can occur. Depending on the construction process, buyers may want inspections before drywall is installed and again before closing.
An inspection doesn't mean you're expecting the builder to do poor work. It gives you another opportunity to identify questions or concerns while they may still be easier to address.
What to do: Before signing the contract, ask what independent inspections are permitted, when they can occur and what procedures must be followed.
3. Understand what happens after closing
Closing isn't necessarily the end of your relationship with the builder.
New homes commonly come with warranties, but coverage, time periods and procedures can vary. Some items may be handled directly by the builder while others may involve manufacturers or subcontractors.
Ask how warranty requests are submitted, how emergencies are handled, what documentation you'll receive and whether there are scheduled warranty walkthroughs after move-in.
What to do: Keep your closing documents, warranty information, appliance information and communications organized in one place. When you report an issue, document what you observed and when you reported it.
The bigger lesson
Buying new construction isn't about distrusting your builder. It's about understanding the agreement you're entering into.
Ask questions before you sign. Get important commitments in writing. Inspect what you're allowed to inspect. Keep your documentation. And verify important items rather than assuming they'll be handled.
That's the same approach behind Before You Buy the House: Anticipate. Ask. Document. Verify.
5 questions to ask your builder
- What features are standard, and which are upgrades?
- Which selections or decisions can change the final price?
- When can I have independent inspections performed?
- What should I expect during the final walkthrough?
- How does the warranty and post-closing service process work?
Good answers are useful. Written answers are even better.
Home issues can vary. When a situation calls for professional help, consult an appropriately licensed professional.