Consider this when purchasing New ConstructionGeneral Real EstateUpdated on Mar 15, 2012 View more like this | Visit KNOXVILLE, TN | Contact EXIT Realty Knoxville |
Consider this when purchasing New Construction
Purchasing a new home that no one has ever lived in is exciting. My first thought is NO DIRT (I’ve been in my home some 30 years and I KNOW it’s not as clean as it could be!), and then there’s low maintenance…for YEARS (everything’s new, after all). If the home is purchased during construction or as a custom home, the buyer can select light fixtures, floor coverings, cabinets, counters, colors, materials, brick, mortar color, roofing, etc. LOTS of decisions to be made.
So many options…what’s the possible downfall?
Do you have a buyers’ agent? The only way you can get a discount on the price or additional options is with a representative. There are loan programs available for new construction that permit the builder to pay for the buyer’s first 6 months of mortgage payments or pay for a buy-down so the interest rate is reduced. Some builders offer to pay the HOA (Homeowners Association) fees for 1-3 years…you likely won’t get any of this without your own agent to represent your interests. The agent on duty or the listing agent represents the builder. You need representation.
A new home needs a lawn and landscaping. Has the builder had proper soil delivered? Is the lawn sodded or seeded? Will you get trees? Shrubs?
If the property is in a new neighborhood, when will be subdivision be built out or will the buyers not come? Will you be the only house or one of just a few with vacant lots around you?
As the subdivision is being built, should you need to sell, you’ll be in competition with the builder, who can offer custom finishes, upgrades and financing incentives. It’s much harder to sell a “used” house in an area where the builder is still constructing new houses.
Are community amenities part of the package? For example, community pool, tennis court, picnic areas, etc. If these have not been built, when will they be in place? We have communities in this area that were built with the residents being promised a pool and clubhouse. The neighborhoods are some 30 years old and they never got their pool!
Builders offer various warranties…is this builder financially stable? Will he be in business should a problem arise in a year or two? What recourses do you have if a structural issue comes up in a year or two and the builder is no longer in the area or has stopped building? Make sure you understand exactly what is covered in the warranty and what happens if the builder is not around to take care of any future issues.
Will the existing roads absorb the additional traffic that the new development will create? Are there plans for adding lanes to existing roads or building new highways? How will this affect your property?
Are there impact fees? Who pays these and when?
Get a copy of the covenants and restrictions. Can you have a fence? What about an addition to your home? If you are transferred and cannot sell your home, will you be permitted to lease it? Ask lots of questions and make sure you can live with the answers!
Interested in building in Farragut: See LOTS and Acreage for sale here.
Lots and acreage for sale in Loudon County
Farragut, Knoxville, TN properties for sale and real estate services. Laurel Grandle, Broker and your real estate expert for Knoxville, Farragut and Hardin Valley areas. You now have free access to Knoxville, TN’s ultimate real estate search engine! Google or call me today and let’s discuss how I can help you save $1000’s when you buy, invest or sell real estate. Exit Realty Knoxville (each office individually owned and operated). 865 690-4300 or—direct (865) 389-2551
Purchasing a new home that no one has ever lived in is exciting. My first thought is NO DIRT (I’ve been in my home some 30 years and I KNOW it’s not as clean as it could be!), and then there’s low maintenance…for YEARS (everything’s new, after all). If the home is purchased during construction or as a custom home, the buyer can select light fixtures, floor coverings, cabinets, counters, colors, materials, brick, mortar color, roofing, etc. LOTS of decisions to be made.
So many options…what’s the possible downfall?
Do you have a buyers’ agent? The only way you can get a discount on the price or additional options is with a representative. There are loan programs available for new construction that permit the builder to pay for the buyer’s first 6 months of mortgage payments or pay for a buy-down so the interest rate is reduced. Some builders offer to pay the HOA (Homeowners Association) fees for 1-3 years…you likely won’t get any of this without your own agent to represent your interests. The agent on duty or the listing agent represents the builder. You need representation.
A new home needs a lawn and landscaping. Has the builder had proper soil delivered? Is the lawn sodded or seeded? Will you get trees? Shrubs?
If the property is in a new neighborhood, when will be subdivision be built out or will the buyers not come? Will you be the only house or one of just a few with vacant lots around you?
As the subdivision is being built, should you need to sell, you’ll be in competition with the builder, who can offer custom finishes, upgrades and financing incentives. It’s much harder to sell a “used” house in an area where the builder is still constructing new houses.
Are community amenities part of the package? For example, community pool, tennis court, picnic areas, etc. If these have not been built, when will they be in place? We have communities in this area that were built with the residents being promised a pool and clubhouse. The neighborhoods are some 30 years old and they never got their pool!
Builders offer various warranties…is this builder financially stable? Will he be in business should a problem arise in a year or two? What recourses do you have if a structural issue comes up in a year or two and the builder is no longer in the area or has stopped building? Make sure you understand exactly what is covered in the warranty and what happens if the builder is not around to take care of any future issues.
Will the existing roads absorb the additional traffic that the new development will create? Are there plans for adding lanes to existing roads or building new highways? How will this affect your property?
Are there impact fees? Who pays these and when?
Get a copy of the covenants and restrictions. Can you have a fence? What about an addition to your home? If you are transferred and cannot sell your home, will you be permitted to lease it? Ask lots of questions and make sure you can live with the answers!
Interested in building in Farragut: See LOTS and Acreage for sale here.
Lots and acreage for sale in Loudon County
Farragut, Knoxville, TN properties for sale and real estate services. Laurel Grandle, Broker and your real estate expert for Knoxville, Farragut and Hardin Valley areas. You now have free access to Knoxville, TN’s ultimate real estate search engine! Google or call me today and let’s discuss how I can help you save $1000’s when you buy, invest or sell real estate. Exit Realty Knoxville (each office individually owned and operated). 865 690-4300 or—direct (865) 389-2551
