Nitty Gritty of New Construction
You want all the pretty and shiny new things? I get it…hard to say no to that new house smell. That immaculate paint job. That toilet seat that no one has ever sat upon. But before you roll up to the model house with stars in your eyes and a Pinterest page dedicated to backsplash trends…please read this!
1. On all that is HOLY…USE a Buyer’s Agent! In most cases, the builder has already factored in each agent’s potential cost into their agreement with their own listing agent. If you don’t have a buyer’s agent, that listing agent is being paid twice the commission and only representing one side…and it’s NOT yours!
2. Study every available lot before you select. I mean…the nitty gritty: grading, retention pod access, lines, set back, amenity location, etc. Have the project manager/builder walk the lot with you and determine how much footprint the home will take up and what yard you’re left with post construction. That lot can look huge empty. Make sure you won't fall out of love with it once a house is built on it.
3. Estimated completion/closing dates are just that…estimated. I have yet to see a contract with a builder that absolutely 100% says we will close on X date. Why? Because the builder is having to deal with mother nature, vendor delays, city and county delays and whatever other mishap that could go wrong. No builder will pin themselves into a corner with an exact date. If possible, stay fluid on your own move in date. Your negotiating power with any outstanding items will rely, in part, on how desperately you need to move into that home ASAP.
4. Be prepared to hear the word “NO”…and often. Unless you are truly custom building your home…as in, the builder is directly hired by you to build the home of your dreams on the lot of your dreams with the money of your savings account…you will hear the word NO. If you are not “custom” building your home, you are buying a home with a “spec” builder. Spec builders are limited to their selections, floorplans, timelines and deadlines. They have to stay on-track and on-plan to close their properties on time. This means, no...they cannot install a custom island made of an old whiskey barrel or individual cabinet knobs you found on Etsy. Those are "post-close" projects.
5. Contract price is not the final sales price. With most builders you have a base price that encompasses the floorplan, lot premium, standard selections included and any seller paid items. They, however, do not take into account most design selections such as upgraded paint, lighting, electrical, cabinetry, security systems, plumbing fixtures, etc. Those “upgraded” items will be selected 1-3 weeks from your initial contract. Make sure you know what is included in the initial pricing so you can budget accordingly and not break the bank with all of the shiny things.
6. Get a home inspection!! If you employ me, you will hear this repeatedly. I cannot MAKE you get a home inspection but will strongly advise you to do so. Why? Because every builder has subcontractors that they cannot babysit 24/7. It is your inspector’s job to look out for your interests, so subcontractor mistakes are not your issues post-close.
I’ve seen it all folks: a 4 year old HVAC unit installed on a brand new home; shingles missing from entire sections of the roof; supporting beams not properly installed; electrical outlets that do not work; backyards that completely flood on the first sight of rain. PLEASE, GET A HOME INSPECTION.
7. Your lawn will not look perfect. Most of our builders install sod in the front and sides with seed in the back. Sod is preferable than seed but, even then…you will need to work each year to cultivate that enviable manicured lawn. Especially in Middle TN. There's a reason why "Rocky Top" is literally a state anthem. If lush lawn is on your must-have list…go ahead and start asking for landscaping referrals or googling terms such as “seeding,” “fertilizing,” “aerating,” and “irrigation.”
8. Stalk the builder like an ex. With as many builders popping up in this market of pent up demand, it’s unlikely that your agent knows or has worked with every builder out there. They can do their due diligence but, at the end of the day, you need to make sure the builder is one you can have confidence in to build your home. Google them. Look at their social media for any reviews or comments from past clients. See if you know anyone who has built with them…ask them how the build went and any post-close issues they have dealt with. Ask to see their home warranty up front and then ask all the questions. Most likely, you will be dealing with a project manager rather than the actual builder…make sure you have confidence in how they communicate with you. You’re committing to 4 to 10 months of a process…make sure you are ready to commit to the builder and his team.
9. Make sure you’re going to like the subdivision once it’s completely built. It’s really easy to get wowed by the shiny and pretty things and forget about the basics. Like…is the hood going to fit your needs and wants for the long term. Is the location feasible for your commute, school, social life, etc. Will the HOA make sure that your neighbors won’t start building chicken coops in the backyard or parking RV’s on the street? Are there sidewalks? Are the streets wide enough to accommodate short term guests that have to park? Will someone be maintaining the entrance to the subdivision and common spaces? Take 15-20 minutes and go to the subdivision with the intent to physically walk it. Talk to neighbors if you come across any. Imagine yourself living there. If after all of this, it’s a yes…get to building!
Thinking of buying all the shiny things? Well, I just happen to know an amazing realtor to call! :-)