Questions For New Construction Home Buyers

Questions For New Construction Home Buyers

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Here in the Triangle area of North Carolina, we are still experiencing a very strong real estate market.  Homes continue to sell fairly quickly and we are still suffering from a shortage of inventory.  A large part of the homes that we are able to find in the greater Raleigh are in new construction neighborhoods.  New construction is popping up all over Wake County, especially in the outskirts of Raleigh (Wake Forest, Apex, Holly Springs, and Fuquay Varina).  If you are considering new construction, there are a couple of questions or bits of information you want to make sure you know the answer to when speaking to the onsite agent in the neighborhood.

Lot Premiums - When you go to a new construction neighborhood, you see the floor models and all the "base" pricing for the different home options.  Lots of people don't realize that if you are looking at empty lots in order to build one of the desired homes on, that particular lot of land may have a premium on it.  Depending on the builder or neighborhood, lot premiums can be as little as $1000 and go up in to the $20,000+ range depending on the location of the lot and the surrounding features.  If the neighborhood does have lot premiums, then that price of the lot will be added to the base pricing of the home.

Standard Finishes - Undoubtedly, everyone has taken a tour of a model home in a new construction neighborhood.  When you take your tour, you get to see all the "bells and whistles" that are available from the builder and all the beautiful upgraded materials and finishes that can go in a home.  These finishes and materials are not necessarily the same as the standard finishes that you will have based on the "base" pricing in the home structure.  You need to ask the onsite agents what are the finishes that you would receive in a finished home with no upgrades.  This is specifically important if you want specific things in the home such as granite in the kitchen or hardwoods throughout the main living areas.  You may find these in the model home but in the base pricing of the home, you may get carpet and vinyl flooring.  Not all builders finish their homes the same way in regards to standard finishes and some builders will change their standard finishes from neighborhood to neighborhood.  Don't assume that you know what the standard finishes are.  You need to ask and get a printout sheet of them for clarification.

Average Upgrades in Neighborhood - Following up on standard finishes is the information of average upgrades in the neighborhood.  What I mean by this is inevitably if you are shopping new construction, you will want some sort of upgrades in the home.  When thinking about upgrades and things you would want to add to the home or change the standard finishes of the home, you want to know that you are not spending too much money.  Ask the onsite agent the average amount that previous home buyers have spent on their purchases in the neighborhood.  This is important so you know or atleast have a better idea that the home will appraise for the final contract price.  With that being said, it is good to ask the agent what the builders policy is for homes that stay within a certain range of upgrades and potentially don't appraise for enough....what does the builder do in these situations.

There is a lot more to know when considering new construction homes but these few items can get you started.  The Kima Real Estate Group is more than capable to help you with your new construction questions and help guide you through the entire building process.  Give us a call today and let us know what we can do to help you.  919-443-0200


Chad Wingler Headshot
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Phone: 919-323-2616
Dated: October 2nd 2017
Views: 376
About Chad: Buying a new house is one of the largest steps a person makes in their life; emotionally, physically...

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