Have you been looking at buying new construction? A new house can be extremely desirable-you’re the first to live in the home and everything is new. That said, it’s up to you to make a lot of decisions about this new home. If you chose the right decisions, you can have a wonderful home for you and your family that may have great resale value down the road.
1. Location, Location, Location. Location is one thing you have to get right the first time. Once you purchase it, you really can’t relocate the house. Be sure that you’re in a area where you want to live and which will give you resale opportunities down the road. While nobody’s resources are unlimited, you can want to consider a slightly nicer area over a larger house to place yourself in a better and more desirable community. This can not only help you today at 10 or 20 years from now when you look to resell.
2. Find What You can Afford. Work with a qualified mortgage professional to help you assess your budget and spending capabilities. You may decide to work with a mortgage broker yet; you may be able to work with your local bank to help determine your needs even before you’re ready to move forward. Ultimately, it’s not what you pay for the home-it’s what you may afford and monthly payments between the mortgage, taxes, insurance, maintenance and living expenses. Your credit score, income and down payment have a huge effect on these numbers. For example, new construction in Commack New York will cost between $1 million and $1.1 million. The amount of monthly payments will change wildly depending on the down payment and credit capacity of the borrower.
3. Look at the Experience of the Builder. Does the builder do communities one house at a time? Does the builder have decades of experience or is this one of his or her first projects? While a solo builder may be somewhat cheaper, you get what you pay for. That builder can be out of business in six months or unable to finish the home in the time permitted. New houses should come with warranties, and if the builder is not a random two years from now, who do you turn to? An experienced builder who works on multiple houses will have larger crews and should be able to work at a consistant pace. For the solo builder, construction will stop if he is waiting for a plumber or contractor, whereas a larger builder will have additional crew members available.
4. What features you want in your house ? Look at what’s selling well in the market. If many houses use central air conditioning and a full basement and the houses you are considering buying do not, it can be a bargain today, but will be hard to resell in the future. We’re not implying that you need every bell and whistle that is of no interest to you, but as you choose a new construction, be sure it has the “essentials.”
5. Look at the property. Is it a big enough piece for you to live with? Just like the location, you can’t change the size and shape of your property. True, you can landscape and grade it, but that won’t change the basic size and shape issues. One acre of property is great, but if 80% of the house is on a heavily wooded slope that is unusable, you are really left with 2/10 of an acre. The more available space you have, the greater benefit you may get from it and the easier it should be to resell.
Keep these tips in mind as you start to look at new construction, and you should be able to narrate choices to one which will suit your needs for long-term and help you down the road when the time comes to sell.