Home buying is an excruciating yet exciting process that every home buyer needs to go through. From finding the perfect lot, to designing the actual house, and choosing all the home décor is truly a one of a kind experience.
However, it's not all rainbows and butterflies; buying a house actually comes with several realities that make it quite challenging.
Here are 5 things you need to know about buying a new home that first time home buyers need to know according to Realty Times:
You probably won't be able to negotiate the price
Unlike resale homes, there is usually no room for price negotiation when it comes to brand new homes. Builders are determined to sell at their set price. However, you have a chance if there is a standing inventory and there are very few homes left for disposal.
"Look for builder inventory homes that have been on the market for 45 days or more," said Inman. "These are the homes in which a buyer might be able to get a good deal."
But you may be able to get some upgrades at no cost
When talking about new-home community, the buyer is able to choose some upgrades to be thrown in the deal like nicer flooring or window coverings. By having the builder take care of this for you before even closing a deal means you can offset your cost when you move in. Some builders even help with closing costs as an incentive.
There might also be incentives to using the builder's in-house lender
If you haven't yet found a lender, you might want to have the builder's in-house or preferred lender. Doing so could be of your advantage as they would usually give you better terms or a lower rate. However, you still have the choice and you shouldn't be pressured to go with the builder's lender.
Use a Realtor
"In general, builders' model homes are staffed by agents who work directly for and represent the builder. A buyer also needs to have a real estate agent who represents them and looks after their best interests," said Inman. "Keep in mind that most builders will require that the real estate agent accompany and register the buyer on their first visit to the builder's model home or community."
Your home will not look like the model
Be realistic when touring a model home. In order to entice buyers, model homes are staged to par - pretty walls, floor, lighting, countertops, perfect furniture, expensive fabric, and frames hang perfectly. You need to realize that if you decide to buy, what you will be getting is an empty shell that you have to beautify yourself. Some model houses come with items that come standard with a sale, so be sure to ask the salesperson about this.
