What Every Buyer Needs to Know About New Construction

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Looking to buy a home?  Here’s why you should consider new construction.

If you are house hunting, you are almost guaranteed to come across new construction properties for sale. When you buy a brand-new home, you are not dealing with an individual seller. Instead, you are working with the builder or developer. But is buying a brand-new home the right decision for you? Here are some of the things about new construction you should consider.

New Homes are Sold Before Completion

Builders will often try to sell as many homes as they can before construction has even begun. They build model homes that allow buyers to review floor plans and other details and choose which ones they are interested in. If you like the projected look and location of the home, then you will put a deposit down that can range from a few thousand dollars to 10% of the purchase price. Keep in mind that new homes are not completed all at once, they are normally completed in phases. Because the building and sale process can take years, the price of homes in the later phases can be way higher than previous homes due to the appreciation of the real estate market.

First Buyers Can Save

Builders incentivize buyers to act quickly and want to get as many buyers under contract as early as possible. This means that early buyers may have the opportunity to negotiate the sales price down. However, this does pose a risk for buyers. If the project is somehow unsuccessful or if you wish to pull out of the deal, you risk losing your down payment as per your contract’s terms.

You Can Get Some Upgrades

If the project you’re interested in is nearing the end of its sale cycle, there’s a chance that the builder will be willing to offer you special upgrades as a way to incentivize your purchase. For instance, they may be willing to offer you hardwood floors or higher-end appliances to ensure that you sign a contract. This is a great way to get some extra goodies without having to shell out some extra money.

These are some of the things you should consider when deciding if you should purchase a new construction property. Whether you are interested in a brand new or a previously lived-in home, it’s important to make sure that the home buying process proceeds as smoothly as possible. This is why you should turn to the experts at Brighton Escrow for the top-tier escrow service that you deserve. Serving the Hermosa Beach area, contact us to get started today.