5 Tips for Building a New Construction Home

Buying a new construction home can be a very rewarding experience. It allows home buyers to make their dream home a reality. Even though they’re not completing the construction themselves, it still takes a lot of time and effort to plan a new construction home. Working with a builder, finding the right location, and finalizing the purchase are all parts of the process. Get started with your plans for purchasing a new construction home by following these steps.

1. Make a List of Must-Haves

Start by making a list of must-haves for their new construction home. This list should include considerations such as where their home should be located, how big it will be, and how many bedrooms it will need. You may even want to include specific features you like, such as an island in the kitchen, a gas fireplace, or the size of the master bedroom closets. Work with all members of the household to talk about goals and hopes for the future home.

2. Choose the Right Location

Some factors to consider when trying to decide where to buy a home include:

• Urban, suburban, or rural. Buyers should ask themselves how close they want to be near work, schools, doctors, businesses, and neighbors.
• View. Buyers should ask if having a view is important, and if so, what kind of view they want.
• Water features. Buyers should contemplate whether they want to be close to creeks, lakes, or ponds.
• Neighborhood features. Buying into a master-planned development may come with perks like walking trails, swimming pools, and playgrounds. How much do these matter to you?

Get a property inspection before deciding to purchase. Inspectors can check soil quality, air quality, pollution levels, and more.

3. Vet Your Builder

Always check out the builder before hiring them. If the buyer does not hire a design-build contractor (a contractor who provides design services in-house), they should also vet their architect.

When vetting a builder, ask to see the builder’s portfolio of work. It will show if that builder has a style compatible with the buyer’s tastes. Additionally, buyers should ask the contractor questions such as:

• How long does it take to construct a house?
• How long have you been doing this work?
• Are you licensed to build homes?
• Do you have references?

4. Get a Construction Loan

Traditional home-buying loans cannot be used to purchase land and build a home. Some buyers pay for land in cash and then get a construction loan to build their house. Other buyers get a loan to buy land and then roll that loan into a construction loan to purchase their house. Either way, it’s essential for buyers to work with a reputable lender to find a home construction loan product that’s right for them.

5. Work With a Real Estate Professional

Working with a real estate professional is one of the best ways for buyers to ensure that their home-buying process will go smoothly. Real estate professionals can help buyers negotiate the cost of the land, negotiate perks with builders, and finish the closing of the purchase.

With these tips in mind, home buyers interested in purchasing a new construction home can begin planning their first steps.

Updated March 2024