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Do not let a builder talk you out of an inspection. Some builders are very against them. Others will welcome the inspection. You pay for the inspection so get it done. They WILL find things that need repairs even on a brand new house. We build one awhile ago and he found some outlets and lights not working. The HVAC system wasn't set up properly. The duct work in the attic was NEVER connected to the furnace! These things were all fixed before our closing. Our builder was really happy we had the inspection done and was VERY upset that his subcontractors did such a poor job and they were paid for the work they didn't complete.
Do not let a builder talk you out of an inspection. Some builders are very against them. Others will welcome the inspection. You pay for the inspection so get it done. They WILL find things that need repairs even on a brand new house. We build one awhile ago and he found some outlets and lights not working. The HVAC system wasn't set up properly. The duct work in the attic was NEVER connected to the furnace! These things were all fixed before our closing. Our builder was really happy we had the inspection done and was VERY upset that his subcontractors did such a poor job and they were paid for the work they didn't complete.
I'm looking to buy a new construction when my lease is up in June.
Can someone walk me through the process?
Do I need a RE agent? Or can I work directly with the builder? How soon should I start looking for a builder?
Any tips or tricks I should be made aware of?
I'll summarize adding to what others may already have stated.
First and very importantly Google, Google, Google, all terms related to bad construction. Read everything you can not only about the bad construction that occurs but also how Builders manipulate buyers through their contracts.
This is most likely the largest purchase of your life! Find an Attorney that is extremely familiar with new construction in your State particularly with contract law for new construction. It would help if they are also at least somewhat familiar with high level building techniques. Nobody can provide you proper legal advice except those who are licensed to do so and have experience in it. YOU WILL encounter questions with Builder contracts and I HIGHLY RECOMMEND you have an Attorney explain your contract to you BEFORE you sign it.
It sounds as if you have never dealt with new construction purchasing. Don't know if you have owned a home before? I do recommend you find an Agent that deals heavily, but not completely, in new home construction. As long as it does not cost you you have little to lose if anything as long as you maintain control of the process of looking.
Start now to find a qualified Inspector to perform phase inspections of the new home. One of the most important qualifications is an Inspector who has bothered to obtain thei International Code Council certifications in the residential building codes. When you deal with a Builder they don't care about an Inspector's opinion. However an Inspector quoting the codes in your reports is not just providing their opinions.
Along the way in Step 1 above you will learn a great deal about what you do not know for new construction. That will lead you in many other searches for answers and you will become knowledgeable enough not to get stomped on by a Builder!
I got a new build, had a real estate agent. She was helpful with some of the nuances, so it doesn't hurt. But I found the property I wanted, etc, not her fault. Plus she gave me a credit.
Do not let a builder talk you out of an inspection. Some builders are very against them. Others will welcome the inspection. You pay for the inspection so get it done. They WILL find things that need repairs even on a brand new house. We build one awhile ago and he found some outlets and lights not working. The HVAC system wasn't set up properly. The duct work in the attic was NEVER connected to the furnace! These things were all fixed before our closing. Our builder was really happy we had the inspection done and was VERY upset that his subcontractors did such a poor job and they were paid for the work they didn't complete.
Wholeheartedly agree. Find someone qualified to inspect at key points along the way.
Also, for the final walk-through, take your time. Bring more eyes with you. If you keep the builder there for eight hours for the final walk-through, they'll just have to be there for eight hours.
You are on a tight timeframe if June is your goal. An RE agent who knows the market, knows the HOAs, the various builders in your area can be great in this.
Actually, the first thing you do is get pre-qualified for a loan to see how much you can afford. How much cash you have for a down payment and how much cash you have for closing fees. With a builder costs are different. Does the builder expect you to finance with their company only? Can you use your own financial people? Is the builder expecting draws in payment while the house is under construction? Better find out the details up front and don't sign any paperwork till you really know what you're looking at. Builders contracts are not just a couple of pages long. Lots of words about "substitutions" and delays in building that you need to be aware of.
Thoughts on building "because I want what I want" .....but if you haven't owned a house before you might not know what you want. With a custom builder you still choose from the floorplans they have available and adjust from there, but do you even know what to change? When it comes to choosing things for the interior you can easily make major mistakes you would have to live with later. The builder is not going to help you -- you are making them money with any change you make. Like any seller - they are looking out for themselves-- not you.
You are also planning on moving when your lease is up --but building is a tricky thing and rarely is a custom house finished exactly on time. With Covid mixed in with everything you can expect delays on anything, including the workers building your house. This is not business as usual time and a lot of companies that supply for these houses are either not working or working with less staff which equals delays.
Since it's your first house, why not find a house that you like instead in an established neighborhood and then make it your home with paint, carpet, wood floors, new cabinets, or whatever. Then when you actually can appreciate home ownership make a plan to move and build when you don't have a lease hanging over your head while living in someone else's house that you can't make changes to.
I applaud you for taking the step to own your own home -- just make sure you don't step into those potholes along the way.
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