Despite the fact that the market for brand new home offers great variety, the prices have risen quite steeply during the past couple of years. According to data by U.S. Department of Housing and Urban Development and the U.S. Census Bureau in the year 2015, the prices of new constructions were forecasted to surge by 18 percent in the year 2016.
Now, it has become comparatively difficult for buyers to purchase the new constructions; and it’s precisely what was predicted. However, there are still a number of ways you can buy a brand new home and save good amount of money. By asking the prospective builders a few questions, you can certainly find a way to make a better deal.
Ask for the financial incentives
Builders do not set standards over the negotiation of sales prices. Although it makes sense but it’s still a factor that could worry the buyers. However, it doesn’t mean that price negotiation would not be the part of the deal. You just need to have better understanding about the role of lender and the Title Company that would get involved in the deal, because these participants are ones who would sponsor the purchase.
Furthermore, the price relaxation may be in the form of upgrades. For instance, you may not get the price reduced but builder might install hardwood flooring or carpeting without billing you for it.
Ask about the standard finishes
You would definitely be taken to a model home by a builder before making a deal. Before going to the visit, ask the builder to take you to the home which would have all of the features installed. While visiting, you can ask which of the features are the standard ones and which ones are the upgrades.
Another way is ask the builder to install the standard features only. You can work with the further upgrades by hiring separate contractor any time later.
Homeowners Association rules
The homes in any community are built under the rules and regulations set by local homeowners association. Thus, a sound knowhow about those rules is something you should have. These rules and regulations can affect the way you want your home to be built. For instance, some of the associations do not allow private fences or solar panels.
Ask for the warranties and their details
One-year workmanship warrantee and 10 year structural warranties are most common among the formal assurances that most of the builders provide. Here, you will have to make sure that warrantee papers include the details of every single warrantee coverage and limitation with elaboration. Furthermore, ask for the warrantee of electrical systems which are being installed by the builder.
Last but no way near the least, references hold special value in any contractual business. Before you finally hand over contract to the builder, you must ask for the references. A real link between a builder’s claims and its actual performance can be revealed only with the help of references.