Buying A Brand New Home
So you have decided that your next home (or first home) is going to be brand new, congratulations! That is a huge step in deciding what lifestyle you want to have. Buying a brand new home, also known as a pre-construction, is its own beast. There are important things you need to be aware of. It can turn out absolutely great when you buy a brand new home, but here are some things you have to know going forward.
The Show Home
Most show homes are gorgeous. They’re expertly staged and represent the highest potential of what a home in that subdivision can look like. But it is also important to know that that level of sophistication and glamour comes at a cost. Everything you see in the model home is an upgrade, and upgrades can range from a few hundred dollars to a few thousand. This is not to say that you should steer away from upgrades, but you do need to be cognizant of what is included in the base model and which upgrades you really want to make your home ideal for you. Pro tip: the more upgrades you spring for, the more you should bargain! You could save hundreds, potentially thousands of dollars.
The Floor Plan
Square footage is sneakily advertised in pre-constructions, especially condos. Many developers will advertise the balcony as part of the total square footage, giving you an idea that your indoor space is larger than you anticipated. Get everything in writing just to be on the safe side.
Most people know that they need to hire a real estate lawyer in order to go through with their transaction. Yet for some reason, people glide by with pre-constructions thinking they won’t need as much legal advice as an already existing home. This is absolutely wrong. Having a lawyer go through your purchase contract is huge. They will be able to spot out if you might end up with an electrical utility box on your front lawn that you can’t move, or if your garage won’t have a side door despite the details in the floor plan. The purchase contract can be riddled with substitutions, exclusions and inclusions and having an experienced real estate lawyer is the best way forward.
The Home Inspection
Another common misconception people have when purchasing a pre-construction is that they don’t need a home inspection. They think because the house is brand new, everything will be in tip top shape. You would be surprised at how much can go wrong with a brand new home. There are two key times to have your home inspected. The first is the pre-delivery inspection which is a mandatory walk-through for all new homes under warranty. This inspection usually occurs with your builder shortly after you take possession of your home. The second inspection should be scheduled one month before your warranty expires (in Ontario, your warranty expires 12 months after your possession date). It’s likely you won’t need a professional home inspector for the first inspection, just a friend who is very savvy about homes. But you absolutely should get a professional inspector for the second inspection. Any major defects found should be sent to the builder while the warranty can still cover fixes.
Buying a brand new home is magical. You get a taste of what it’s like to build and customize your dream home, without having to live in it during renovations. But behind all the glitter and sparkles there can be cobwebs. As long as you are aware of what to look out for, buying a brand new home is a fantastic option for you financially (especially if you purchase it in the first stages of development!). If you are looking to buy a brand new home, please message me here. I would love to help you find the house of your dreams.