New Construction Home Buying in Massachusetts
Maximum Real Estate Exposure is owned by author Bill Gassett.
Are you considering buying new construction? There is something to be said about buying a new home. For the most part, the chances of having unexpected warts are lower than buying a resale home.
That doesn't mean there aren't any problems. Far from it. When buying new construction, there are far more things to consider.
We will look at the essential things to know about the process when buying a new construction home. By getting educated on the process, you'll lower your odds of making mistakes.
Start by Vetting The Builder
When buying new construction in Massachusetts, it is vital to do your research and vet the builder. Before putting a house under contract, you'll want to get all your questions answered satisfactorily.
A builder’s reputation will tell you a lot about their work, customer service, ability to stick to their construction timeline, and how they handle warranty claims.
Research the builder’s background and ask around the community to understand their reputation in the area.
Check their license and insurance to make sure they are up to date. Ask to see references from past clients and find out how they would rate their experience.
You can also look online for reviews of the builder. All of this research will help you make an informed decision.
What Are The Costs Associated With a New Construction Home?
The cost of buying a new construction home in Massachusetts is often higher than that of a resale. The cost of buying land is a significant reason new construction is so expensive.
Building costs can vary tremendously depending on the size, location, and amenities included. The tax assessment is also a significant variable from town to town.
Other costs to consider include additional fees such as inspection fees, attorney fees, title insurance fees, and home insurance. These costs will vary depending on the type of loan you take out and the lender you use.
You may also need to factor in the landscaping cost, furniture, appliances, and other items to make the home livable. These costs can add up quickly, so it is essential to factor them into your budget.
The most vital thing to remember is that you will likely spend more than you plan to. Based on thirty-seven years of working with new construction buyers, it is easy to go over your budget.
Most people will see things they want in their new home and decide not to forgo them. The allowances the builder provides often do not go far enough.
For example, you may want wood floors in an area of the home the builder has allocated carpet. Upgrades add up quickly.
Have a Buyer's Agent When Purchasing New Construction
Having a buyer’s agent is essential when purchasing a new construction home. A buyer’s agent works on your behalf, advocating for your best interests throughout the process. This contrasts with the listing agent, who works on behalf of the builder.
A buyer’s agent will provide objective advice, helping to ensure that the buyer’s best interests are considered. The listing agent cannot do this for you.
One of the most significant benefits is negotiating on your behalf. It's possible you may be able to get some extras negotiated into the price. They are there to secure the best deal.
A buyer's agent will also point out things that should not be overlooked and potential risks. A seller's agent can NEVER advocate on behalf of the buyer.
Learn About Any Restrictive Covenants
Restrictive covenants are essential to research when buying new construction in Massachusetts. These covenants are contractual agreements that limit the use of the property. They are usually put in place by the builder or developer and are legally binding.
Restrictive covenants can limit the size and type of structures you can build on the property, what type of landscaping you can do, and even the type of fencing you can install.
It is crucial to check the restrictive covenants before you sign the paperwork on your new home. Restrictive covenants can be difficult to modify once they are in place. Make sure to understand the restrictions and how they may affect your lifestyle.
Your real estate agent should be able to provide you with a copy of any restrictive covenants associated with the property. Talking to your real estate attorney to ensure you understand the covenants' implications is also a good idea.
Knowing what restrictions are in place upfront will help you make an informed decision and avoid potential conflicts.
Make Sure The Builder's Warranty Provides Adequate Coverage
One of the more important aspects of buying a new home is ensuring the builder provides a good warranty.
A builder's warranty guarantees that the home's construction meets certain standards. It is also a guarantee that any defects in the home's construction will be repaired according to the terms of the warranty.
Ideally, the warranty should cover structural defects for at least a year, such as walls, ceilings, floors, and foundations. The warranty should also cover all major mechanical systems, such as plumbing, heating, and air conditioning.
Unfortunately, some builders will limit the timeframes to as short as possible. This is where an attorney experienced in negotiating new construction contracts can be handy.
Smart Questions to Ask When Buying New Construction in Massachusetts
Here are some essential questions to get answered when you buy a new home.
1. Can I see other homes you have built?
2. Who will answer any questions I have once the construction starts?
3. Are you offering any special financing incentives?
4. Will I be able to make upgrades during the construction process?
5. Can I visit the house during process to look at the progress?
6. What happens if you don't meet the closing date?
7. When will I be required to pay for any upgrades?
8. Will the landscaping be completed before closing?
9. How quickly will the punch list items be addressed?
10. Can I have a home inspection when the construction is completed?
Final Thoughts on Buying a New Construction House
Buying a new home comes with many benefits. However, it is easy to get involved in a transaction where you become unhappy. It is vital to vet a builder thoroughly before committing to making a purchase.
Hopefully, these new construction tips help ensure you have a pleasant experience.
Did you enjoy this advice on what to know about buying new construction homes in Massachusetts? See other real estate articles on NewsBreak for more timely tips and advice. Bill often writes about general real estate, mortgages, finance, moving, and home improvement.
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