The new home market it currently booming. It is an expanding market that is offering tons of jobs for labourers. The process of buying a new home does differ from purchasing a resale home. There are different considerations, time lines, and financial expectations of the buyers.
When buying a new home from a builder there are many pre packaged items to consider, along with custom specifications you can add to the features of the home, at an added cost of course. Some sales offices even have pre packages financing packages ready for you to look out. Depending on the deal and the purchase, sometimes there are multiple instalments of deposits that are arranged in advance, and that must be submitted as part of the purchase agreement.
When buying a new home, there are many upgrade options that you have access to. Some of these upgrades include, finishes, appliances, flooring, and energy saving equipment. Some floor plan modifications are also available to you, depending on the model and the builder you are working with.
One of the challenges with a new residential area is that typically the development is done in stages. As a new buyer you will want to know as much as possible about the upcoming phases and the city planning around your subdivision, this could impact value and your enjoyment of your property down the road. Some things you may want to consider are the plans for further development in the subdivision, location for green space and recreational areas, access to schools, and parks. You may also want to look into the city plans for main streets and traffic to see how that will impact the street you will be living on. A well informed buyer is a happy buyer.
Take your time to get all the information that you need to feel comfortable and excited about the new home you are about to buy. Working with a professional is always a great first step to securing the help and expertise you will need when making decisions about such a large investment for you and your family.
The Construction Process
The Construction process of a new home is done in stages, and can take some time depending on the development plans of the builder when you put the deposit down for your home.
Behind the scenes before you even get to choose the lot and pick your model, the builder has gone through many stages of financing, inspections, permits and so on to get the land ready for construction. I point this out because all of those things have considerations when it comes to time lines in order to have your home ready for the close date. Because permits, inspection, materials and construction often have delays, there is always a chance that your close date can be pushed back.
Another thing I wanted to touch on with new homes, typically the builder gives a 1, 2 and 7year warranty on the house, however many of the appliances and finishes you use in your home have an warranty that extends passed the warranty period set out by the builders. In these cases the builder passes on the warranty to the new home owner for those products and materials and any issues with them after the builders warranty has expired will need to be dealt with with by the manufacturer directly. The coverage involved in the builders warranty is something you will want to look into closely before finalizing the agreement to purchase.
This is just a quick breakdown of the what to expect when buying a new home. Having representation with knowledge of the processes, documents, warrantees, time lines, deposit protections and so on will help make this process smoother and and can alleviate some of the stresses. This is one of the largest financial decisions you will ever make, buying a home comes with many steps and ups and downs, let us help navigate you through the process so you can focus on your future enjoying your new home…