Newly constructed homes come with energy efficiency, enhanced safety features, and amenities that are more in line with modern lifestyles. However, if you aren’t vigilant in the buying process when it comes to buying newly constructed homes, these things may cost you more than they’re worth. Let’s look at five costly new construction buying mistakes that you should try to avoid.
Settling on the First Lender without Shopping Around
Large builders usually have in-house mortgage lenders that are on their payroll. You cannot count on these lenders to offer competitive terms or rates. Therefore, it is important that you shop around; survey the mortgage lenders market thoroughly before settling on a lender. Unless you’ve surveyed the market, you will not be able to compare prices and mortgage rates. The incentives offered by the builder’s lender may seem appealing, but unless you have knowledge of what the competitors have to offer in the market, you shouldn’t jump to a decision.
This way, you’ll save money and get the best mortgage rates when outside lenders and the in-house lenders compete to provide their services to you. So take your time and browse around in the market. In doing this, you’re chances of getting a better deal increase.
Not Understanding Builder Warranties
You’ll come across two different categories of builder warranties; express and implied warranties. Implied warranties cover workmanship defects that concern the habitability, safety, and livability of the new construction according to building standards and codes. They are often vaguely worded and have a liability cut-off period spanning 10 years.
Express warranty, on the other hand, is more precise about what is covered and the cut-off periods for parts of the newly constructed home. Make sure that you thoroughly read these warranties and understand what they entail. Acquiring the services of an attorney or an agent can be quite useful in this scenario to safeguard yourself against fraud and unscrupulous practices.
Upgrades That Won’t Increase Your Home’s Value
The add-ons and upgrade options can be too attractive to pass up as you step into the builder’s showroom. However, if you get carried away here, you may end up with unnecessary upgrades that will not enhance the property’s value in any way. Mere looks should not be a metric to go by when it comes to upgrades and add-ons. You should always think along the lines of functionality and value addition to the property when making such a decision.
Not Negotiating with the Builder
It is a widely prevalent myth among buyers that you can’t negotiate with the builders on when it comes to new construction. However, that’s all it is – a myth. And myths like these should be dispelled. Acquiring the services of an agent can come in handy in this scenario as well.
If you’re looking to buy a new house anywhere in Orlando, Florida, you can acquire our dedicated services to avoid all of the aforementioned new construction buying mistakes and make the process seamless for yourself.
