Buying New Construction
buyers. A few years ago a developer could hold fast on a price and did not need to offer upgrades or discount in order to close a sale. In the current market climate, developers are more willing to give buyers a better deal.
New construction in the Summit NJ real estate market has a lot to offer home buyers. A few years ago a developer could hold fast on a price and did not need to offer upgrades or discount in order to close a sale. In the current market climate,
developers are more willing to give buyers a better deal. A developer needs to keep the flow of sales running in order to prevent the entire neighborhood from becoming stagnant. If sales dry up, so does the construction. An unfinished-looking neighborhood with no new building activity is even harder to sell than one that is bustling with new construction. A buyer may start asking his Summit NJ real estate agent what is wrong with the development if nothing much is happening.Get an inspection.If you choose to buy a newly constructed home, don’t forgo the inspection. Just because a home is new, that doesn’t mean it’s perfect. Your Summit NJ realtor will still recommend having an inspection to check for any mistakes in the building process. If the builder offers you a few upgrades to make up for anything the inspector finds, think twice before accepting. You might make out better if you negotiate for a price reduction instead.Shop around for your financing.Don’t assume that the builder’s financing options are the best ones you’ll find. You should still shop around for the best rates. Over the course of your loan a seemingly small difference in the interest rate can add up to a big amount of money.Check for financial stability.If you are searching for new construction in the Summit NJ listings, look for a developer with a long standing reputation and a stable financial base. Find out if there are outstanding complaints with the Better Business Bureau or the local homebuilders association. Ask if he has his subcontractors sign lien waivers. This type of waiver will protect you in the event that the builder fails to pay his bills. Otherwise, the subcontractors can place a lien on your home. Don’t let the builder draw progress payments from your account without approval from both you and your bank. Use the current market conditions to your best advantage. Buying new construction could be a great way to get everything you want in a home at a price you can afford. Just don’t let the fresh wood and brand new carpeting go to your head. Be just as careful and smart about a new home purchase as you would be if you were looking at an older home.
