Things You Should know before buying a New Home

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things you need to know when buying a new home

One of the biggest mistakes when buying a new home is assuming that everything in the house will work perfectly because the home is brand new. No matter how good the builder is, there is no such thing as a perfect house. Problems always can crop up.

Even after you’ve gone over the builder’s punch list and you feel everything is resolved, issues can still crop up. The frustration occurs when you have gone through the punch list, every issue has been addressed and you’ve now ended the relationship with the builder. And all of a sudden there’s a problem. For example your hot water tank is not adequate to supply sufficient hot water for all four of your family members take a shower at the same time. Or a circuit breaker shuts down because you’ve now turned on too many appliances and televisions.

The solution to this is to put a clause in the contract for fixing unidentified problems after you moved in. As a new homeowners you should prepare yourself for all contingencies by having your attorney include a clause in contract that states that unidentified issues that crop up after closing must be resolved. Your standard warranty contract or construction insurance policy normally do not cover these issues.

Remember always to maintain a good rapport with your builder because there’s no predicting what problem could crop up after you have bought the home and moved in. Lastly remember you should have choice a good home inspector to check out the house with all the equipment and expertise he has to just be sure. You should ask your family and friends for a referral for a good home inspector, because it’s sad to say, some inspectors are not really looking out for your best interest because of their relationship with the builder.

Here are 6 basic mistakes a new homeowners should avoid when going through this process of buying a new home.

1) Never commit to a property before getting a pre-approval loan. Never let the builder’s salesperson or the real estate agent talk you into letting them help you find financing. Many times these mortgages are not right for you the buyer.
2) Not getting a good faith estimate on the pre-approved loan. A Good Faith estimate is mandated by the Truth in Lending Act, which insures you are receiving the best financing for your particular situation. Everything is clearly outlined in this document.
3) Being afraid to negotiate the terms even though it’s a new house. With an official credit limit in hand, your good faith estimate, you can confidently approach the purchase and negotiate to your advantage.

4) Failing to ask neighbors or friends about the builder’s reputation. How easy was he to work with? How long did it take to finish your home? These are as important as the quality of the products he uses and the quality of the workmanship performed by his subs.
5) Not having the new home inspected by an independent professional home inspector. Even though the home is new, you need a qualified professional home inspector. This small investment is definitely worth it.
6) Neglecting to ask for the punch list before closing. The punch list is a list of all problems that need to be fixed. A good, reliable builder will normally do this. But you should not assume that. You need to create your own punch list. Do not be pressured into closing before the punch list is completed to your satisfaction.

We at A Plus Garage Doors hope that this information was helpful when you are looking to buy a new home. Remember for all your garage door needs, we are here to help. Please call us in Eastern Shore at 251 626-0773 and in South Baldwin County at 251 971-3331.

 

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