Understanding the New Construction Home Buying Process

Buying a new construction home can be quite exciting. You’ll be the first person to set foot in the house, and you’ll even get a say in its customization. But there are a few additional steps you’ll need to take when purchasing new construction compared to buying a pre-owned home. Here’s everything you need to know about the new construction home buying process.

If you need assistance selling your house or are looking for a new home in Isle of Palms, SC, contact Jimmy Carroll Realty today.

Set a Budget & Get Preapproved

Just like with any home search, you’ll first need to set a reasonable budget based on your income. Once you’ve settled on a number that takes into account the down payment, insurance, and property taxes, you’ll then need to get preapproved by a mortgage lender or bank. After you’re preapproved, you can then begin searching for viable new construction homes that are within your price point.

Find a Promising Builder or Location

There are two ways people often decide where to buy new construction homes. The first option is to find a builder you like, then buy where they’re currently developing. Alternatively, you could start by researching your favorite locations, then find builders who are developing in those areas. To help you decide which route to take, consider the following tips:

  • If you’re most concerned with the style and customization of your home, you should look for builders first. You’ll be able to find a builder that is designing homes that you absolutely love.
  • If you’re most concerned with the area that your home is in, you should research locations first. However, this might limit you to a few select builders, meaning you’ll have to go with the style of home they’re developing in your desired location.

A realtor can be a great resource in this step of the process. They have plenty of connections and tools to help you strike the perfect balance between a builder you love and your desired location. Reach out to our team at Jimmy Carroll Realty for assistance!

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Ask What’s Included with Your Purchase

It’s always wise to ask the builder what’s included in your home purchase. Some areas to discuss include the following:

Home Basics & Upgrades

New construction homes usually start with a basic package of items that will be included in each build, such as standard flooring and necessary appliances. It’s important to know the cost of the basic package and what it comes with so you can build upon it with upgrades, if you choose to do so. Some upgrades could include swapping out the flooring, opting for stainless steel appliances, selecting high-end finishes, and more. Of course, upgrades will cost extra, so be sure that whatever you select will fit in your budget.

Neighborhood Fees & Restrictions

If you’re moving into a new subdivision, be sure to ask the builder if there is an HOA or any neighborhood fees. This is another important factor to consider in terms of your budget. You’ll also want to know exactly what those fees cover, such as landscaping and maintenance of shared spaces.

It’s likely that there will also be some neighborhood restrictions as well, like what can be put in your yard, how you can paint your house, if you can put in a pool, and more. Understanding these restrictions will be important when making your final purchasing decision.

Subdivision Amenities

Your builder should also be aware of all available subdivision amenities. These might include an onsite gym, community pool, gated entry, and more. A home is a big purchase, so you should make sure you know everything that you’ll get to enjoy when you move in.

Development Timeline

Of course, the development timeline of both your home and the community is a crucial aspect to consider. It would be an unfortunate mistake to purchase a home that you can’t move into until the distant future. In addition, if the subdivision isn’t anywhere near completion, you’ll also have to deal with construction noises long after you move in. That said, be sure that your new house will be complete in a reasonable time that fits your moving schedule, and be aware of the inconveniences of purchasing a home in an unfinished community.

Include a Home Warranty and Final Inspection in Your Contract

Once you’ve selected your home and are ready to buy, it’s a good idea to protect your house with a warranty. A home warranty will hold the builder accountable to fix any major issues with your new home within a specified time period (e.g. one year). Accidents happen and builds aren’t always perfect, but a home warranty will give you peace of mind that any errors will be corrected at no cost to you. Be sure that your home warranty is clearly outlined in your sales contract.

Your sales contract should also be contingent on a final home inspection. Again, it’s possible that there could be flaws in the build, so you’ll want to catch those upfront before you move in. A quick check of the new build will identify if it’s up to code and constructed properly with all of the upgrades you paid for.

Work with Jimmy Carroll Realty

We hope you have a solid understanding of the new construction home buying process! If you’re ready to sell your current home and want to explore new construction properties in Isle of Palms, SC, be sure to contact Jimmy Carroll Realty today!