![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/making-an-offer-on-a-new-construction-home-bulldozer-666x381.png\")
<\/a>1. Find an agent who specializes in new construction<\/h2>\n
Real estate agent Max Devries<\/a>, who is based in the San Francisco Bay Area and has more than 20 years of experience in the industry, says that finding an agent who understands the new construction process is crucial.<\/p>\n \u201cNew construction can often sell out quickly,\u201d he says.<\/p>\n \u201cIf you have a good agent, they can keep you up-to-date on availability and get you on waiting lists with specific builders.\u201d<\/p><\/blockquote>\n Because the process is so different from buying an existing home, finding an agent<\/a> who has experience in making offers on new builds will make everything easier for you as a buyer. Agents who specialize in new construction should have a working knowledge of the builders in your area, their price ranges, and when these builders might be starting a new development, as well as an understanding of negotiating upgrades or other add-ons.<\/p>\n Do your homework on builders in your area.<\/p>\n You can start by driving through some of their older neighborhoods and seeing what the homes look like, how they\u2019ve held up over time, and what kind of designs each builder uses. This will help give you an overview of which builder might be best-suited to your needs.<\/p>\n You can also research various builders online<\/a> and see what kind of reviews their business has, as well as make sure there aren\u2019t any complaints on the Better Business Bureau website<\/a>.<\/p>\n Devries says the difference between individual builders and what they offer can be vast.<\/p>\n \u201cHere in the Bay Area, we have specific builders who we consider better than others. There are builders that are more affordable, but they also might not offer the same level of upgrades,\u201d he explains.<\/p>\n These upgrades can mean the difference between, for instance, a hollow interior door and a more expensive solid one, or customized cabinets as opposed to the standard builder\u2019s grade.<\/p>\n When you start researching builders, visiting their model homes can help you see what kind of home plans you\u2019d have to choose from, as well as any specific customizations that can help make your home more unique. Just remember \u2014 model homes usually have high-end upgrades that aren\u2019t going to be included in your new home\u2019s price, and tacking on endless upgrades can add thousands to your overall cost.<\/p>\n It\u2019s also a good idea to know which floor plans the builder has available, so that when you\u2019re touring their model homes, if they don\u2019t have a model home for a specific floor plan you want, you\u2019ll still be able to imagine what it might look like based on the homes you do get to see.<\/p>\n Once you select a builder, then you can start looking at their developments, available lots, and house styles.<\/p>\n \u201cIt\u2019s important to know exactly where the house will be built,\u201d says Devries. \u201cSome buyers might want the home to face in a specific direction for religious reasons, or want to know they\u2019ll get afternoon sun in their backyard.\u201d<\/p>\n He adds that finding out information on whether or not there\u2019s a homeowner\u2019s association<\/a> (HOA) and what the dues are, how much landscaping is included as part of the purchase, and whether or not an HOA might require additional landscaping within a certain amount of time are also important factors when considering a new build.<\/p>\n \u201cThese are things you might not think to ask, or a builder might leave out of the discussion,\u201d he says.<\/p>\n If there are a limited number of lots to choose from, or if construction has already started on the lot you want, this also might be a good time to ask about a discount because you weren\u2019t able to customize where the home sits on the lot.<\/p>\n Your agent will also be able to talk to the builder about whether or not there is a waiting list for a home in their development, get you pre-registered with the builder, and discover just how long it might be before your name makes it to the top of the waitlist.<\/p>\n One big difference between new construction and buying an existing home is that with new construction, the builder can provide financing. That doesn\u2019t necessarily mean you should<\/i> use a builder\u2019s financing, however \u2014 nor are you required to.<\/p>\n Devries recommends that buyers still shop around<\/a> for a mortgage because mortgages can be as competitive as any other facet of the real estate industry. The builder does, however, usually offer what is often the better deal.<\/p>\n \u201cTruth be told, it can be difficult to beat the builder for financing,\u201d he says. \u201cBuilders have a lot of incentives they can offer, which can add up to tens of thousands in savings for the buyer.\u201d<\/p>\n These incentives can come in the form of upgrades, warranties, help with closing costs, or even special financing options.<\/p>\n Once you and your agent have discussed all the terms you want to bring to the table with your offer, your agent<\/a> will write up an offer and submit it to the builder.<\/p>\n One thing to keep in mind is that pricing on new construction is often non-negotiable. According to Devries, the prices for new construction are usually pre-determined and are already agreed-upon between the bank funding the project and the builder.<\/p>\n \u201cBuilders are usually very committed to their pricing, as it\u2019s based on a current market analysis that is done prior to each new phase of a neighborhood being developed,\u201d he says.<\/p>\n This does not mean there is no room for negotiation, however, and when you make your offer, you\u2019ll have the opportunity to ask for upgrades you might want, for help with closing costs, that the builder cover your first year of HOA dues, or maybe for a home warranty.<\/p>\n Devries adds that while the price of a new construction<\/a> home is usually set in stone, sometimes builders are willing to offer deals on their model homes \u2014 especially if they\u2019re getting ready to move onto a new phase of development and no longer need to use the model homes to showcase a certain neighborhood.<\/p>\n While you won\u2019t get to pick out the layout or design of the home, you\u2019d still be getting a brand-new house in the neighborhood you want!<\/p>\n Rome wasn\u2019t built in a day, and your new house won\u2019t be, either.<\/p>\n While your builder will give you a timeframe of when the house will be move-in ready, that isn\u2019t always a hard-and-fast date. According to Devries, buyers should expect delays.<\/p>\n \u201cIf you\u2019re working with a financially stable builder, you can anticipate from the moment you get your lot assigned to your move-in date to be about six months,\u201d he says. \u201cBut there are almost always setbacks.\u201d<\/p>\n New construction<\/a> timelines can be interrupted by myriad issues, from problems with the various inspections, supply shortages \u2014 even weather can sometimes cause delays. Your agent should be there during this process, helping you keep in touch with the builder during inspections, and troubleshooting any problems that might arise.<\/p>\n The paperwork involved with a new construction<\/a> home can seem daunting. Prior to signing, you and your agent will want to sit down and review it all.<\/p>\n \u201cOne thing that often happens to a buyer is they come to the table and see an enormous stack of papers, all tabbed and ready for signatures, and they\u2019re supposed to just sign off on it,\u201d says Devries. \u201cYou need to make sure you\u2019ve read and understand every piece of paper, because once you sign it, you are committed.\u201d<\/p>\n This is where having a new construction real estate agent<\/a> comes in, because they will read the contract for you and go over everything with you before you sit down with the builder to sign.<\/p>\n You\u2019ll want to make sure any verbal agreements between you and the builder are documented, that any contingencies such as inspections<\/a> (still important with new construction, as new doesn\u2019t always mean flawless!) are included \u2014 and that all information, such as the legal address of the property, lender information, and (of course) the purchase price, are correct.<\/p>\n2. Learn about builders and their developments<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/making-an-offer-on-a-new-construction-home-couch-666x381.png\")
<\/a>3. Visit some model showrooms<\/h2>\n
4. Decide which development, lot, and house you want<\/h2>\n
5. Shop for a mortgage<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/making-an-offer-on-a-new-construction-home-upgrade-666x381.png\")
<\/a>6. Ask for upgrades<\/h2>\n
7. Understand the timeline<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/making-an-offer-on-a-new-construction-home-signature-666x381.png\")
<\/a>8. Get everything in writing, and read before you sign!<\/h2>\n