Five Simple Steps Before Buying New Construction

By Craig Axelrod

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 home. If you make the right decisions, you can have a beautiful home for you and your family that may 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 buy it, you really can't move the house. Make confident that you're in a neighborhood 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. Find What You may Spend. Work with a qualified mortgage professional to assist you assess your budget and spending capabilities. You may want to work with a mortgage broker yet; you can be able to work with your local bank to help determine your needs even before you're ready to move forward. Basically, 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 based on the down payment and credit capacity of the borrower.

3. Look at the Experience of the Builder. Does the builder do communities one home at a time? Does the builder have decades of experience or is this one of his or her first projects? While a individual builder may be slightly cheaper, you get what you pay for. That builder may be out of business in eight months or unable to finish 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 homes will have bigger crews and should be able to work at a consistant pace. For the solo builder, construction will stop if he is waiting for a plumber or electrician, whereas a larger builder will have additional crew members available.

4. What features you want in your house ? Look at what's selling strong in the market. If many homes have central air conditioning and a finished basement and the homes you are considering purchasing do not, it can be a bargain today, but will be difficult to resell in the future. We're not saying 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 may landscape and grade it, but that doesn't change the basic size and shape issues. One acre of property is wonderful, but if 80% of the house is on a heavily wooded slope that is unusable, you are really left with 2/10 of an acre. The more usable space you have, the greater benefit you can get from it and the simplier it should be to resell.

Keep these tips in mind as you start to look at new construction, and you should be able to narrow choices to one which can suit your needs for long-term and help you down the road when the time comes to sell.

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