1. You May Not Find New Constructions In The MLSThe average seller typically has an agent who lists their home with the local MLS. Builders of new construction homes, however, want more control and save money, so they usually have their own salespeople right on site. For buyers, this means new homes won’t show in their agent’s MLS search.
If you’ve got an agent and you’re interested in purchasing a new construction home, be sure they explore every avenue, so you find all the new homes available in a given area.
2. New Homes Often Sell Before They’re BuiltIndividual new home constructions are often a part of a community or subdivision. This means there will likely be many homes similar to each other in size and design before the project is complete. In the beginning, the builder will get the financing and selling procedures lined up and begin selling the homes, often before they are even built. They will build model homes for buyers to look at and get a feel for what their homes would be like.
If you decide you’re ready to move forward with the purchase of a new construction home, you’ll likely need to put a deposit down that could be as much as 10 percent of the purchase price.
3. First Buyers Get The Best DealsBecause it’s important at the beginning of a project to get a few homes under contract, builders will often be more willing to negotiate a lower asking price than later on in the project. Getting several houses under contract looks good to the bank financing the project as well.
Being a first buyer, however, does come with some risk. Once you contract for a new home, you’re committed to the project. Should something happen that forces you to back out or should sales stall for some reason, you could lose your deposit.