If you are thinking about purchasing a new production home, there is quite a lot to consider.
There are many fantastic reasons to buy a brand new home. A new production home, or production built home, is appealing because it’s brand new. As the very first owner of the home, you can choose options for the interior, go for certain upgrades, and select the best available lot. But before you sign a contract to purchase a new production home, it’s important to understand a few important pieces of information.
Buying a home from a new home builder is the same as buying a pre-owned home in that you are purchasing a piece of property in which you and your family will live. However, there are several differences in buying these two types of homes. Not only is the buying process slightly different, but there are several factors to consider with a new production home that are not as critical when buying a pre-owned property.
Separating Fact from Fiction
Following is a list of 8 myths commonly associated with buying a new production home. Separating fact from fiction in regard to these issues is essential. Keep in mind that enlisting the help of a real estate agent to help you with the purchase of a new production home is one of the most effective ways to ensure you make the best possible choices.
Myth: All new production homes that are currently being built utilize the most modern floor plans available in the real estate market. Actually, many new home builders do not use the most modern floor plans, and oftentimes buyers do not realize that this can be a negative issue until after moving in. A real estate agent is an excellent resource for pointing out flaws in outdated floor plans.
Myth: If I use a real estate agent to purchase a new production home, the builder will offer me fewer incentives or will raise the price of my home. In reality, using a real estate agent should have no impact on your incentives and will have no bearing on the price of your home.
Myth: I will have to personally pay my real estate agent a commission if I use him or her to help me purchase a new production home. This is not factual. Builders are responsible for paying the real estate agent’s fee, and the buyer is not required to pay anything to the agent. Essentially, using a real estate agent to help with your purchase should cost you absolutely nothing.
Myth: New production homes do not need any type of inspection because they are brand new and nothing could be wrong. This myth could not be farther from the truth! There are plenty of things that can go wrong with a brand new home, and it’s important to discover any defects before you close on the purchase.
Myth: The cost of a new production home is always more expensive than the cost of a pre-owned home (assuming the homes are approximately the same size and located in the same general area). In actuality, it’s usually possible to find both new production homes and pre-owned homes in similar geographic areas with a wide range of prices. It may be possible to find a new construction home for less than you would pay for a comparable pre-owned home.
Myth: It does not matter which direction a new production home faces because all lots are good. Even though a home builder’s sales rep might try to convince you that there is no such thing as a bad lot in any new construction neighborhood, some lots are absolutely better than others. An experienced real estate agent has the knowledge to point out the pros and cons associated with every lot you are considering.
Myth: Builders do not like it when buyers use a real estate agent. Not true! Most builders would prefer that buyers be represented by a real estate agent because they know that a real estate agent can help ensure a smooth transaction.
Myth: All upgrades to a new construction home will add to the future value of the home. This is not necessarily true. Certain upgrades will definitely add to the value of the home. Others may not add quite as much. Working with a real estate agent can be a great help in this regard. A real estate agent will offer advice on which upgrades are worthwhile, and which should be avoided.