Buying a brand-new home definitely comes with its share of perks… but it can quickly become costly if you’re not a savvy shopper. So, how do you make sure you’re getting the home you want while staying comfortably within your budget?
Here are some money-saving tips for buying new construction.
Know What Influences Builder Pricing
- Cost of the land (and its location)
- Size of the home
- Cost of the building materials and labor
- Real estate market conditions
Understand There are Better Times to Buy
Just like any company with a product to sell, builders often have sales goals and deadlines to meet. What that means for you as a buyer is that as builder near their monthly or quarterly deadlines, they may offer more aggressive buying incentives.
Not sure when these deadlines might be? Ask your Realtor! A good local agent should be able to help you out with this.
Negotiate on the Back End
Because builders often sell a lot of similar homes at the same time, they rarely drop prices (drop one price and they all have to come down, right?). That doesn’t mean you can’t still get a good deal… you just might need to be a little more creative with your negotiations.
Not sure exactly how to go about asking for back-end negotiations? Ask your Realtor for suggestions—like having the builder pay closing costs or add in upgrade free-of-cost.
Find Out What’s Included
When you take a tour of the model home, understand that many of the features and finishes you see (and love) might not come standard. So before you fall in love with a home, make sure you find out what’s included… and what’s going to cost you more.
Or Purchase the Model Home
Not only are they the builders’ showcase homes (i.e., the best of the best), but they’re often a pretty good deal. Yes, they’ve probably had hundreds of buyers touring through them, and maybe even served as an office for the builder or their agent, but they’re still brand-new. You probably won’t be able to pick all your favorite finishes, but you will likely be getting all the upgrades without the higher price tag.
Consider Using the Builder’s Lender
It’s not always the right option for every buyer, but builders will often offer incentives or price breaks when you choose to work with their preferred lender. It may save you some big money, but it’s always a good idea to do some shopping and review all your options before making a decision.
Always Work with an Experienced Local Realtor
One of the most important money-saving actions you can take when buying a new home is to team up with an outstanding local agent experienced in new construction. A good agent can recommend high-quality builders, can steer you towards new communities you might love, and can help you negotiate with builders for the best deal.