Buying a brand-new home can be exciting, but “new” doesn’t necessarily mean perfect or that there won’t be decisions to make along the way. We asked Chris Walton, Agency Manager at Cornerstone Insurance Agency, what he wishes every homebuyer knew before purchasing a new construction home.
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Buying a brand-new home can be exciting, but “new” doesn’t necessarily mean perfect or that there won’t be decisions to make along the way. We asked Chris Walton, Agency Manager at Cornerstone Insurance Agency, what he wishes every homebuyer knew before purchasing a new construction home.
What are the biggest misconception buyers have about purchased a new construction home?
One of the biggest misconceptions is that new construction means nothing will ever go wrong. Even new homes can have issues, including foundation settling, minor punch-list items, and repairs identified during the walkthrough.
That’s one reason the builder’s warranty is so important. The advantage of buying new isn’t necessarily perfection; it’s knowing that the home is built to current codes and that certain issues may be addressed under the warranty rather than becoming problems you have to handle on your own down the road.
Can buyers negotiate the price of a new construction home?
Buyers often ask whether they can negotiate the base price, but builders may be more flexible with incentives than with the home listed price.
Instead of simply asking, “Can you lower the price?” Consider asking what incentives are currently available. These could include interest-rate buy-downs, upgrades or closing-cost credits, depending on the builder and community.
Should buyers have their own real estate agent when purchasing new construction?
Yes. Buyers should consider having their own real estate agent involved from the very beginning, ideally before the first visit to the builder’s sales office and certainly before signing anything.
A builder’s sales representative works on behalf of the builder. Having your own representation gives you someone who can advocate for your interests and help you navigate the purchase process.
What costs should buyers consider beyond the purchase price?
The purchase price is only one part of the overall cost of owning a new home. Buyers should also budget for expenses such as:
- Closing costs
- Homeowners insurance
- HOA fees
- Landscaping
- Window coverings
- Fencing
- Garage shelving or other storage
- Gutters, if they aren’t included
It can also be helpful to create a first-year homeownership budget for the smaller projects and purchases that can add up after you move in.
How can buyers make the new home buying process smoother?
Getting pre-qualified is a great first step, but buyers may also want to consider pursuing full underwriting early in the process when available.
Having the financing process further along can help buyers respond more quickly to requests from the builder or lender and reduce the chance of last-minute surprises or delays.
What do buyers often overlook when purchasing a new construction home?
It’s easy to fall in love with a model home and focus on what the community looks like today. But buyers should also think about the long-term picture.
Ask questions such as:
- What future phases of the community are still being developed?
- Is there nearby land that is zoned but not yet developed?
- Could HOA dues change as additional amenities are added?
- What could the surrounding area look like in the future?
- How might these factors affect the home’s future resale value?
Understanding what’s still coming can help buyers make a more informed long-term decision.
What makes for a successful post-closing experience?
Clear expectations can make a big difference. Before closing, buyers should understand how the builder warranty process works, what types of issues are covered, who to contact, what needs to be documented, and what the expected repair timelines are.
Staying proactive rather than assuming everything will automatically be handled can help the post-closing process move more smoothly.
What is the one thing you wish every homebuyer knew before purchasing a new construction home?
Don’t just fall in love with the house, understand the entire purchase.
Take the time to understand your representation, financing, insurance, warranties, incentives, and the future of the community. A new construction home can be an exciting investment, but the more informed you are before signing, the better prepared you’ll be for homeownership after closing.
Have questions about homeowners’ insurance for your new construction home?
Our team at Cornerstone Insurance Agency is here to help. If you’re purchasing a new construction home and have questions about coverage, costs or what you should consider before closing, reach out to one of our insurance agents.
We’re here to help you understand your options and make sure you have the coverage you need for your new home.
Call Cornerstone Insurance Agency today to speak with one of our insurance agents.
This article is for informational purposes only. You should not act based on this information without first consulting with your insurance agent; if you would like a quote from a Cornerstone Insurance Agency licensed agent, contact us. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided “as is.” Cornerstone makes no representation that this content is error-free.