Buying New Construction? Here’s What You Should Know

exterior of noma townhomes in construction
Written by Robert Boozer

If you’re in the market for a new home and you have the budget available, buying new construction should be a no-brainer. Nothing compares to that new home smell and all the latest trends and options that come with it. New construction offers customized and modern features that you won’t find with pre-owned homes. However, you should note the key differences between the new construction and pre-owned buying process.

Read below for steps that will keep the stress away from the new construction process.

Explore your financing options.

Whether you have found the perfect lot and want to build your dream home or you have found the perfect neighborhood with an existing dream home, you have plenty of financing options. In a more traditional custom home build, you will typically obtain a construction loan from a lender of your choice, and pay the builder as progress is made. You only pay interest on the amount you used on the construction loan each month until the home is complete.

At that time most people will take the construction loan to a more conventional 15 or 30-year loan. If you have found a home or townhome that is “to be built” or already under construction, you typically pay a deposit at contract and nothing else until the closing. This is the more likely situation as new developments appear. 

Research builders & neighborhoods

Any home purchase is not to be taken lightly and in new construction, the builder is the most important part. Do your research and review homes or townhomes they have previously built so you can get a clear understanding of what to expect. Make sure to tour larger projects, where they may have other units under construction. 

Don’t fall in love with the builder if you don’t like the neighborhood. Once the home is complete it’s there to stay, so make sure the location is right for you. 

Ask: What comes with the standard package?

Tour model homes to see finishing touches and how furniture fits in a room, but always remember that more times than not there will be a number of upgrades in the model that aren’t standard to every home. Always ask if items are included in the base price or if they are options. 

Know your timeline

New construction in Greenville is a process and not always one that goes as planned. Delays from weather, material availability, and subcontractor schedules are common. Make sure you have enough time at your current residence to stay there until your new home is completely finished. 

A typical home takes 8 to 10 months from start to finish. You do not want to move in if there are still items to be completed. 

Hire a realtor

Just like the hunt for an existing home, a realtor is an amazing asset in the search for new construction. Realtors often know of projects that are upcoming and may not be known to the public yet. Most will also have experience buying and selling homes of the various builders in the area. There is no better reference than a realtor’s experience with previous clients and builders buying new construction. 

If you’re looking for the simplest way to successfully complete a new construction transaction, contact us. The real estate team at Parker Group knows the Greenville market better than anyone, and we genuinely care about your success. Contact us today so we can guide you through the entire new construction process!

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