New Construction Homes: What to Know Before Buying Off the Plan

New Construction Homes: What to Know Before Buying Off the Plan

Have you heard that Americans buy over 5.6 million homes per year?

Buying a home is something that can take many months or even years of diligent planning. The top concern investors have is buying a new build or an existing home.

New construction homes offer a lot. Read on for our new construction home guide to see if this is right for you.

What Does Buying Off the Plan Mean?

Buying off the plan means you purchase a house before it's built. You rely on plans, drawings, and models. This can be a brilliant way to get a brand-new home, but you need to be cautious and do your research.

Perks of Buying Off the Plan

One benefit is that you often pay less. Prices for homes under construction are usually lower.

You might also get a better choice of lots or designs. New homes also come with the latest designs and energy-efficient features.

Risks of Buying Off the Plan

The main risk is that the final product might not meet your expectations. Delays in construction can happen. Sometimes, the builder may even go out of business.

New Home Construction Tips

Check the builder's reputation and look at their past projects to confirm they're trustworthy. Read the new construction home contract carefully. Know what's included and what's not, and check the timelines and penalties for delays.

Find out if you can get a mortgage for a home not yet built. Some banks may have special conditions for this.

Research the laws in your area, and have a lawyer review the paperwork for your new construction home. Some places offer protections for buyers of new homes.

Guide to New Homes and What to Look for

Make sure the design fits your lifestyle. Look at the floor plan and room sizes. Ask about materials since higher quality materials last longer and need less maintenance.

New homes should be energy efficient, which saves you money on bills and is better for the environment. Check the warranty offered. This protects you if there are defects in the construction.

What to Know Before Buying

What is the timeline for completion? Know when the home will be finished so you can plan your move.

Can you make changes to the design? Some builders allow customization. Find out if you can make changes to suit your needs.

What happens if there are delays? Know what compensation is available if the home isn't finished on time.

Are there any extra costs? This could include landscaping, driveway, or other finishes.

Final Steps Before Buying New Homes

If possible, visit the construction site. This gives you an idea of the neighborhood and progress.

Look closely at the plans and specifications. Make sure they match what you want.

Keep in regular contact with the builder to ensure you're updated on progress and any changes.

New Construction Homes Are a Fabulous Option

Buying new construction homes off the plan can be a wonderful opportunity. Research the builder, understand the contract, and know what to look for.

Would you like to expand your Hammond real estate business? Contact PMI NWI to discuss our property management solutions. Our franchise has been transforming investments like yours for over two decades.