The new construction home-buying process differs from the buying process for an existing home. While many of the steps are similar, new construction homes come with more specific requirements.
Here is a basic step-by-step guide to the buying process for a new construction home:
Create a budget
With new construction homes, you have to account for your ongoing expenses while the home is still being built. Whether this means your current home expenses or temporary residence, it’s crucial to plan your finances before you get started on the process.
Get a construction loan
Getting preapproval for a mortgage loan is a common early step in the home-buying process. Buying a new construction loan requires getting a construction loan. These loans can have different requirements depending on where you’re building your new home.
Find a real estate agent
While it might seem like new construction doesn’t require help from a real estate agent, hiring your own trustworthy agent can help you when working with a builder.
Real estate agents should also be involved to help protect you from any uncanny legalese or process questions.
Research builders
If you have not already found a prospective home builder in your area, it’s time to research your options. Be prepared to ask about their experience in the area and with your particular style of home.
Choose your features
New construction homes usually have different timelines and pricing based on the level of customization you want. The three main types of construction are custom, semi-custom and spec.
Hire a home inspector
Hire your own home inspector to examine your new construction home when it’s finished. This will make sure you’re getting an unbiased opinion on the home condition.
Close on your new construction home
For new construction, closing day is the day you’ve finished all of your financing documents and the home is physically ready for move-in. It’s a good idea to establish regular checks on the building process before the day arrives.
Buying new construction can have many benefits over buying an existing home. However, it’s important to know the differences in terms of process. Keep these steps in mind when preparing for your own home-buying experience.
About the Author
Marsha Charles
Consistent top listing and selling agent receiving Chairman's Club award for superior sales achievement almost every year while associated with Preferred Properties, Inc. Consistently receive the International Presidents Premier award for sales volume since joining Coldwell Banker Realty and ranked in the top 1% of agents in Connecticut and Westchester County. In 2021 I received the International Society of Excellence award for sales volume in excess of $100,000,000. I have been named a Top Five Sales Agent for customer satisfaction since 2010 (longer than any other agent in Connecticut) and listed in Connecticut Magazine. Named one of the Top Agents in Connecticut by Real Trends since 2018.
I work with sellers and buyers and also have a strong understanding to needs of those who are relocating . Background and experience in advertising, public relations and photography offer creative and innovative marketing plans for sellers.
Realtor designations include: Graduate Real Estate Institute, Certified Residential Specialist, Certified Residential Marketing Specialist, and Pricing Strategy Advisor. Served as President of New Canaan Board of Realtors (two terms), Director (three terms) and currently serve on Professional Standards Committee. Named Realtor of the year by the New Canaan Board of Realtors in 1994and again in 2022.
Married and mother of other of four children who attended and graduated from the New Canaan School System, Member of New Canaan, Darien, Greenwich and Statewide MLS systems. Areas covered include New Canaan, Darien, Greenwich, Rowayton, Norwalk, Wilton and all of lower Fairfield County.
