Buying a pre-construction home can be exciting. After all, it’s a chance to own something brand new that is tailored to your exact needs and desires.
But before you jump into this process, there are several factors that the real estate professionals at Zoocasa recommend you should consider in order to make sure it’s right for you. Here are some tips to help you when buying a pre-construction home:
1. Do Your Research
Before making any commitments, check if the builder and development company have any experience with projects of similar size and scope. Are there any customer complaints or reviews online? Even better, try touring one of the developer’s previous built homes if possible. As well, check whether there are any potential development projects in the works that could affect the value of your home in the future.
2. Know the Timeline
It’s important to understand that pre-construction homes can often take longer than expected to be completed. Make sure you have a realistic timeline for when construction is expected to begin and when your home will be ready to move-in. It’s not uncommon for projects to be delayed by one or two years, and though this can be frustrating, it is sometimes unavoidable.
3. Understand Any Legal Requirements
Buying pre-construction is an investment, so it’s crucial to know what legal requirements are in place in order to protect both you and the builder. You want to make sure this financial commitment is right for you, and that there aren’t any hidden fees. Speak with a lawyer who is knowledgeable and experienced in pre-construction real estate transactions before signing anything.
4. Get Professional Support
Consider working with a real estate agent to help you navigate the complex world of pre-construction home buying. Not only can they provide you with valuable advice and potentially save you from making costly mistakes, but they can also help with the documentation.
5. Investigate Financing Options
Take a close look at your budget and make sure to factor in future fees, such as taxes and closing costs. There are several different financing options available to help you in this process and by talking to your lender, whether it be the bank or a mortgage broker, you can find out what kind of loan makes the most sense for your situation and budget.
6. Consider Upgrades and Extra Costs
Pre-construction homes usually come with standard features, but many builders will offer upgrades or customizations that can add an extra cost to the purchase price. Customizations can be pricey so make sure to ask questions about the quality and design before signing on the dotted line. Consider upgrading features that will give you the best return on your investment in the future, such as flooring and hardware.
7. Prepare for Closing Costs
Closing costs for a pre-construction home can be significantly higher than for an existing home, as the buyer is typically responsible for the full cost of all closing expenses, including appraisal fees, title insurance, legal fees, and taxes. Additionally, if you are using a real estate agent or attorney, you may need to factor in their commissions as well.
By taking the time to do your research and seek professional advice, you can make sure that everything goes as planned and that your home-buying process is smooth.