TIPS FOR BUYING A NEW CONSTRUCTION HOME IN HOUSTON
Buying a new construction home can be very exciting. We’ve been there! What are some ways you can make the best out of your investment? Check out some of these tips you need to know before you sign on the dotted line.
When it comes to new developments, the best thing you can do, in our opinion, is to buy as early as you can.
You don’t want to be the last person the builders sell a house to. Why? If you buy early on in the development, prices are still at the beginning stages. As time goes on and more houses are sold, builders will push the prices higher and higher.
You just bought though. Why should you care? Well, because the builders are making YOU money. They are forcing your house to appreciate in value as they continue to raise their prices.
On the other hand, if you wait until the development is nearly complete, you will pay at the top of the market and a much higher price than anyone else. Essentially, you have no equity.
TIP #2: DON’T BUY THE BIGGEST OR SMALLEST HOUSE
Don’t buy the biggest or smallest house that the builders offer. Buy something in between. The reason? It goes back to the equity thing I was telling you about. The builders could offer that same floor plan and square footage, for a much steeper price, all because of the elevation difference or cosmetics on the inside.
When it comes to your homes value, you can use those comps to your advantage if you decided to sell. So for now, try not to buy the most expensive, or least expensive plans they offer. Stick with something in between and get the most bang for your buck for square footage.
TIP #3: BE CAUTIOUS AT THE DESIGN CENTER
If you are building the house from the ground up, the builder will eventually send you off to their design center. The design center is where you will make your interior and exterior selections. This is where the price can get wildly out of control. Everything that you see is an upgrade that you pay for. Everything. Flooring, fixtures, granite, you name it. It’s all an upgrade.
Here is where you need to make a careful decision. Are you okay with what the builder is offering you that’s standard and “free”? Or do you want to upgrade everything and pay a hefty premium?
Keep in mind, everything you see and all the upgrades you want, you can get for a fraction of the cost if you hired a contractor yourself after you close. This will save you thousands of dollars. The downside is that you will have to pay for this out of your own pocket rather than rolling it into the loan. And a downside of rolling the upgrades into your loan is that you can quickly kill any equity you could gain for a long time because your purchase price is much higher now. It’s a double edged sword, so make your best decision!
TIP #4: TAKE PICTURES OF EACH PHASE – IT WILL HELP LATER
If you know you are going to stay in this house for a long time, go ahead and take pictures of the house during each phase. The foundation, the framing, the rough plumbing and electrical, all of it.
If you ever wanted to remodel you will always have these pictures to know where things are. For example, you no longer like that wall. You want the wall removed to open up the space. But is there any plumbing or vent pipes behind that wall? Well have no fear, your overachieving self has all the old photos you took to look at for the answer.
TIP #5: GET YOUR OWN INSPECTION DONE
Just because it’s a new construction house does not mean the house will be flawless. Yeah, the builders have their inspections, but those inspectors are hired by the builder. At the end of the completion, hire your own inspector to make sure nothing is structurally wrong with the home.
Prime example: A new construction home at the price of $750,000 had severe framing issues. If the buyer did not take the advice from their fantastic real estate agent, they would have never hired their own inspector to find out. Needless to say, they terminated the contract and went elsewhere because the builders didn’t want to fix the problem. The sad part is, the builders will sell it to someone else and they will never know.
I hope you enjoyed the tips for buying a new construction home in Houston! Let us know if we can help you in any way. Don’t hesitate to reach out if you have any questions!
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And if you are ready to start looking at homes to purchase, schedule an appointment with us for a buyers consultation.