Things to Remember When Buying a Newly-Built Home

When obtaining a mortgage and purchasing a newly-built property, it is important to know that the homebuilder remains a part of the new home experience for quite a while after the closing date on the sale.

In order for the home buyer to benefit from this relationship, an open line of communication is imperative. But there are also details that need to be worked out before packing any moving boxes or calling a moving company.

Take a tour.
Ask the company that has built your home for a walk-through prior to moving in. This is the time to point out any issues you have with the structure, as well as any cosmetic fixes you would like to see done. The individual hosting the walk-through should inform you of all the special features of the home during the tour.

After-care policies.
Be sure to get the details of the company's service program. Homebuilding contractors vary on the types of services they provide clients, and length of time in which those services are available. You should definitely have at least 30 days of service, but many companies offer six months to a year of follow-up care. It's a good idea to ask if there is an extended program available. This can cover any problems you might have for up to three years.

Warranties please.
Besides the service program, you need to know what warranties you have on the house. In addition to peace of mind, this information can help lower your homeowners insurance rates as well. Get the homebuilder to go through the warranty with you and point out what is covered and what is not. Find out if your contract allows for an independent inspection of the home. If so, you should take full advantage and get an inspection done before moving day.

Utilities switch.
It is a good idea to get a clear answer on who is responsible for switching the utilities. During the building process, the homebuilding company maintains responsibility for all connected utilities. Find out if the company handles the transfer of electricity, water, sewers and other services into your name, or if you need to take care of the transfers yourself.

Stick to the schedule.
As construction comes to an end, you will need to keep a close eye on the schedule. You don't want to unpack while heavy construction is still going on. If things are running behind, find out when you have to close and defer the date is necessary.

Final details.
If the home is ready for occupancy, but still requires the workers to be onsite, figure what you can live with and what you can't in terms of construction noise and dirt, then have an honest conversation with your builder.

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