Building a home from the ground up is much different from buying an existing home on the real estate market, and with that, there are different things you have to ask about and know. Because building is so different from buying, there are little quirks and tricks to the process that you may not know about. That’s why it’s so important to ask your builder these five questions, especially if it’s your first time building a home.
1. Is the price of the lot included? When a builder shows you a price for a home, you need to find out if it’s just the price of building the new construction or if it includes the lot as well. Lots can be pricey, so you want to know exactly what you’re going to pay for both the house and the land before you make any commitments.
2. Is a builder warranty and a home warranty included? Typically, builders will include a warranty that covers the permanent parts of the home, like the electrical and plumbing, from any defects or poor workmanship. You’ll also want to see if they include a homeowner’s warranty, which covers things like your appliances.
3. How long will construction take? If you want a new construction home, chances are that you’re going to have to wait for it. Get an estimate on the construction timeline from the builder, but keep in mind that timelines change and you might have to be flexible.
4. What comes standard and what are upgrades? Builders have a tendency to show buyers a model home with all the fancy upgrades but then don’t make it clear that those nice fixtures cost extra. Get your builder to be very clear about what’s standard and what requires an extra cost.
5. Can you back out of your contract? You want to find out when and why a builder can back out of the contract. You’ll also want to find out if there are any contingencies that would allow you to cancel the contract. It’s best to have this information and hope that you never need it.
While asking these questions, you’ll want to make sure you have an experienced real estate agent on your side. They’ll back you up, help you understand the contracts, and make sure that you’re getting the best deal possible on your new home.