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Have you been looking at buying new construction? A new house can be extremely desirable-you’re the first to live in the home and everything is new. That said, it’s up to you to make a lot of decisions about this new house. If you make the right decisions, you may have a beautiful home for you and your family that can have great resale value down the road.
1. Location, Location, Location. Location is one thing you have to get right the first time. Once you purchase it, you really can’t move your home. Be confident that you’re in a area where you want to live and which will give you resale opportunities down the road. While nobody’s resources are unlimited, you can want to consider a slightly nicer area over a larger home to place yourself in a better and more desirable community. This can not only help you today at 10 or 20 years from now when you look to resell.
2. Decide What You can Spend. Work with a qualified mortgage professional to assist you assess your budget and spending capabilities. You may decide to work with a mortgage broker yet; you may be able to work with your local bank to help assess your needs even before you’re ready to move forward. Ultimately, it’s not what you pay for the house-it’s what you can afford and monthly payments between the mortgage, taxes, insurance, maintenance and living expenses. Your credit score, income and down payment have a huge effect on these numbers. For example, new construction in Commack New York can cost between $1 million and $1.1 million. The amount of monthly payments will change wildly depending on the down payment and credit capacity of the borrower.
3. Look at the Experience of the Builder. Does the builder complete developments one home at a time? Does the builder have years of experience or is this one of his or her first projects? While a individual builder can be somewhat cheaper, you get what you pay for. That builder may be out of business in six months or unable to complete the house in the time permitted. New homes should come with warranties, and if the builder is not a random two years from now, who do you turn to? An experienced builder who works on multiple houses will have bigger crews and should be able to work at a faster pace. For the individual builder, construction will stop if he is waiting for a painter or electrician, whereas a larger builder can have additional crew members available.
4. What features you want in your house ? Look at what’s selling well in the market. If many houses have central air conditioning and a full basement and the homes you are considering buying do not, it can be a bargain today, but will be hard to resell in the future. We’re not suggesting that you need every bell and whistle that is of no interest to you, but as you choose a new construction, make sure it has the “essentials.”
5. Look at the property. Is it a large enough piece for you to live with? Just like the location, you can’t change the size and shape of your property. True, you can landscape and grade it, but that doesn’t change the basic size and shape constraints. One acre of property is great, but if 80% of the home is on a heavily wooded slope that is unusable, you are really left with 2/10 of an acre. The more available space you have, the greater benefit you can get from it and the easier it should be to resell.
Keep these things in mind as you start to look at new construction, and you should be able to narrate choices to one which can suit your needs for long-term and help you down the road when the time comes to sell.