.jpg)
January 14, 2024
There are several new residential developments here in Southeast Florida — Four Seasons at Parkland, Lotus at Boca Raton, etc. — and one of the things we help our clients with is how to avoid costly mistakes when buying a new construction home from a builder.
Forgetting how upgrades will eventually add up
In the excitement, buyers can easily forget how upgrades and premiums will affect the final price. Onsite sales agents will offer upgrades and premiums (it's their job since they work for the builder!) so it's important to know your limits and not go over budget.
Actual home features will be on the purchase agreement
You might have toured a model home — these models are there to present upgrades and other features like a pool. The price that you will pay only includes what's stated in your home purchase agreement. Features not listed will be at an additional cost.
Underestimating potential delays
Builders should provide an estimated timelime to completion, however, buyers should still factor in potential delays to avoid stress and extra expense. There are things out of our control like bad weather and supply shortages... But others can be avoided by making the final design decisions within the deadline before the work begins.
If you don't have the time to wait, you might consider buying a quick move-in home that's either move-in ready or under construction (a.k.a. "spec" home) where the builder has already made the choices which likely include premium features.
Forgetting to factor in costs of homeownership
In addition to the mortgage (principal + interest), there will be HOA fees, property taxes, insurance, and more. These are recurring expenses that you will pay as a homeowner. It is important to understand them (for example, property insurance is one that usually increases over time) and include them in your budget.
Forgoing the home inspection
New construction homes can have issues and a home inspection can find them. The builder will conduct inspections at certain points of the build for compliance, but it's still recommended to hire your own home inspector — for your piece of mind. You can negotiate repairs if significant issues are found.
