New builds are looking better than ever, especially in a market like ours. But there are a few things you need to watch out for when buying a new build. Here’s what you need to know before you sign on the dotted line.
– Have pros on your team. Make sure you have a buyer’s agent! When you start walking through model homes, a “buyer representative” will be there to help you out. But they’re there to help the builder–not you. Having your own agent will ensure you get a good deal and don’t get taken advantage of.
– Know the quality of the builder’s past projects. Builders vastly differ in the quality of their builds. Some builders use the best materials and their homes will stand the test of time. But other builders can cut corners and make for major headaches down the road. Unfortunately, “you get what you pay for” applies here. If something feels too good to be true, it probably is. Do your due diligence and research any builder you’re interested in. Pay attention to those reviews too!
– Understand the inspections and warranties. As much as we wish otherwise, fresh builds can still have problems. And a brand new home doesn’t mean a perfect home–so make sure you get that inspection done. Try to find an inspector with experience in new builds because they may be able to spot problems unique to new builds.
You’ll also want to look closely at the warranties that your new home comes with. Generally there are 2 warranty types: a minimum home warranty that covers workmanship defects that impact the home’s livability, and additional warranty that may cover defects in your home’s mechanical systems or building envelope.
Have your agent look over the warranties with you and get any questions you have answered.
– Understand the deposits and contracts. When you go to sign a contract and make a deposit, make sure you really understand exactly what’s going on. Know if you can get your deposit refunded and under which circumstances you could get a refund. Your contract should spell everything out, especially about what happens with delays. If the builder agrees to anything that isn’t in the contract, make sure to get that in writing. Your agent will help you understand the contract, so definitely ask if you have any questions.
Buying a new build can be a great choice for many buyers, especially in a low-inventory market. Just remember to do your research, have experts on your side, and understand all of the fine print. If you’re looking into a new build, just reply to this blog or contact me using the information below !
Karla Saa
CNE | Broker
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HomeTap.ca
RE/MAX Real Estate Centre Inc., Brokerage.
1140 Burnhamthorpe Road West
Suite 141
Mississauga, ON. L4C 4E9
D: 416-881-3770
karla@hometap.ca
