Have you ever experienced the feeling of being the first person to live in a brand new home? The counters are shiny and fingerprint-free, the walls are freshly painted and smooth, and the floors are gleaming and un-scuffed.
Does the thought of someone else's taste in paint colors or appliances give you a headache? Do you hate seeing a stranger's child's growth chart drawn onto the wall with a Sharpie? If so, then a brand new home may be the perfect choice for you. Read on to find out our money saving tips to consider when purchasing a new construction home.
1. Harness The Help Of A Buyer's Agent
It is important to keep in mind that the builder sales agent ultimately represents the builder - so who represents you? By working with an experienced real estate agent you have an advocate who is there to help you navigate the new construction homes market.
Your agent can save you thousands of dollars by disclosing both the positives and drawbacks of the new home purchase. Builder's agents aren't required to discuss the negatives of the purchase with you. Your buyer's agent will have access to information that you won't. After all, isn't it important to know what is planned for those acres of empty land behind your home? Future additions to the area could either positively or negatively affect your future home value - making you or costing you money in the long run.
Finally, real estate agents are wise and experienced negotiators. If you attempt to handle the negotiations yourself you may fall victim to the sale's agent's high-pressure tactics.
2. Pick And Choose Your Upgrades
Often the model homes come with a host of extra features such as that to-die-for bay window in the front room, or the stunning mahogany cupboards. Once you start adding up the cost of the additions, your affordable dream home suddenly skyrockets into an expensive investment.
If you want your home to resemble the picturesque model home, you will likely have to purchase a ton of upgrades. Be picky and choosey when considering which features you want added to your home. Upgrades that effect the overall floor plan of the house should be done immediately, while cosmetic upgrades can wait a while. You can save money by considering which upgrades you can purchase and install yourself. Your buyer's agent will be happy to help you make these decisions.
3. Be The First Buyer
The first residents within a new subdivision often have to deal with the headaches the come with living in a large construction site. There will be heavy machinery noise, truck traffic, ugly dirt lots where there should be green grass and spooky shells of empty homes. This often makes it difficult for developers to sell homes. As the neighborhood gains more attention, and begins to look more livable, it becomes easier to sell the homes and the prices are likely to increase.
If you are willing to accept the inconvenience associated with living in an in-progress subdivision, then you are likely to get a much better deal. Being one of the first buyers is the perfect way to enjoy saving money on your dream home.
4. Think Small
Remember that with each square foot you add to the size of your ideal home, your utility and maintenance costs both increase. Choose a floor plan that is right for you, and resist the urge to get that dreamy home with the second office. Choosing a smaller floor plan does not mean that you have to choose tiny bedrooms and cram your family into a tight space. For example, choose the home with the second bedroom that is 11x11 feet instead of 14x14 feet. You'll not only save money upfront by purchasing a smaller home, but you'll also save on power and gas in the long run.
5. Know Exactly What You Want
When you purchase a new home you'll have a myriad of choices to make. From carpeting to hardwood, quartz to granite, or curtains to shades, your decision-making abilities will be tested. Making sure you know what you want will undoubtedly save you money. Making changes midway through your home build can be incredibly costly. You will end up paying for lost materials, new materials and extra labor related to making your change. Avoid tacking on thousands of dollars to the price of your home and ensure you are certain with every decision you take.
6. Purchase The Model Home
Okay, so once hundreds of people have tracked through the home it becomes arguable whether or not it can be called "new" anymore. Perhaps we can go with "gently used but unlived-in". However, purchasing the model home (usually the last to be sold in the subdivision) is an amazing way to save thousands of dollars. Those to-die-for additions are often included in the price, not added as upgrades like when purchasing your brand new home. Keep in mind that you won't be able to choose the paint colors or the material used on the kitchen cupboards, but the model homes are usually fashioned with the best materials to position them as "dream homes". Find out if you can purchase a model home and you'll have money left over for a rainy day.