Tips for Buying a New Construction Home

Real Estate

Tips for Buying a New Construction Home

*Picture from REcolorado*

In order to get the guidance and help from a realtor that represents you in choosing new construction, be sure to get your realtor involved early.

Instead of negotiating on the price of your new home, you will most likely have more luck in negotiating to have extra items or upgrades added to your home. If the builder reduces the price for you, that could affect the appraisal on future homes they sell.

Be aware that the builders most likely will not use the standard Colorado Real Estate Commission Approved contract. Usually their corporate lawyers have created the contract to be used in many different states. And since the builders' lawyers have created the contract, the terms lean heavily in favor of the builder. If you want to buy their home, you'll have to use their contract.

One of the negative thing about buying a new home is the time it takes to have it built. It will probably take longer than 5 months and could take as much as a year or longer.

Another issue to consider is where the entire subdivision is in the building process. If you get in early, you could benefit from a much lower price. However, you may have to put up with construction going on around you for several years.

Last weekend I was in visiting a Lennar subdivision. Their home prices will increase $5,000 every month until you go Under Contract. So if you buy a new home at the end of the building out of the subdivision, you won't have to put up with much construction around you, but you'll be buying at a much higher price point.

Now since I mentioned Lennar, home builders differ drastically on what is included in the base price. Some builders may say their base price is $500,000, but after you get done adding all the essentials (you wanted indoor plumbing?), you're now at $550,000. Then there will be other items you'll have to pay for once you move in - window coverings, sprinkler system and landscaping, fence are some frequent expenses that you might have to pony up for after you close.

Lennar on the other hand includes TONS of nice features and upgrades in their base price. So be sure to inquiry what exactly the builder includes in the base price of a home.

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Whenever you are ready, here’s some ways that I can help with your real estate goals:

1) Free Access to search the Denver MLS for all homes currently on the market: Denver Home Finder Service Property Search

2) Join me for a home tour - Home tours are Monday thru Saturday at 2:00 pm or 6:00 pm - choose your tour here

3) Request a specific search that sends all the homes that meet your parameters as soon as they come on the market - that way you can beat others to the best homes. Send me an email with "specific search" in the subject line and your wish list - Price range, school district, style, minimum number of bedrooms, etc. -

4) Receive a Home Loan Report –There are so many different loan programs. Do you need 20% down payment to purchase a home? Are there special programs for first time home buyers? What does CHFA mean? What's the difference between a FHA loan and a Conventional loan? Send me an email - - with "Home Loan Report" in subject field and I'll send it right over.

Also….check these out??

Denver Home Finder Service

Denver Home Seller Service