Building your own home has its perks. Freshly painted walls, brand new appliances, and choosing your own preferences are just a few of the positives of new construction. Building your own home also has its downsides. While the pros outweigh the cons, there are a few things to keep in mind when considering building a home.
Self-advocate, be decisive, use your voice, and ask questions.
Research and prepare.
Spend wisely, and choose safety and location over upgrades.
Use your own agent and lender, not the builder’s. They will work for you, and look out for your best interest.
Get an independent inspection.
Choose a reputable builder by checking review sites, state licensing boards, and local court records before signing.
Visit a home with your floor plan.
Ask about warranties.
Pros and Cons
- No one else has lived in the home
- It is impeccably clean when you move in
- Everything in the home is brand new
- Items are picked out by you and to your preference
- Customization throughout the home is what you like
- Home is energy efficient
- Less maintenance for the first few years owning the home
- Less unexpected costs to repair old appliances
- Builders vary and so does their experience
- Limited options when choosing customizations
- Upgrades are expensive
- Negotiation opportunities are slim
- Building is not done on your timeline, but on someone else’s
Shop around for a lender. Builders have their own lenders you can use. You will find better rates by researching rates from various lenders.
Pass on new construction upgrades that don’t increase the value of the home. Even little upgrades add up. If it won’t increase the value of your home, pass on the upgrade and plan for it later down the road.
Don’t assume you can’t negotiate. While you might not have as much room for negotiation as you would when working with home owners, it doesn’t hurt to try.
Budget for all items you will be responsible for new construction costs both during and after. Planning ahead will keep you from overspending during the building process. Costs the homeowner is responsible for include things like landscaping, HOA dues, and furnishing.
Overall, having a new beautiful home is a perk. Be prepared, and the process will be even smoother.