BUYING NEW CONSTRUCTION FROM BUILDERS

EVERYTHING YOU NEED TO KNOW

Madison is a fantastic place to live. It’s so fantastic, in fact, that Livability ranked it #3 on its Top 100 Best Places to Live list for 2020. The desire to live in the Madison area has put a lot of pressure on the real estate market, keeping demand high and the number of available homes low.

That’s why many of our clients are considering buying new construction homes. If you’re in the same boat, there are several important differences between buying a new construction home versus a “normal” property. Here’s what you should know.

WHAT IS A NEW CONSTRUCTION PROPERTY?

By definition, a new construction home means that the first buyer is also the first person to live there after it’s been built. Sometimes buyers purchase land and work directly with a builder from the beginning.

Every home sale is different, but new construction adds in a few additional unique aspects. For instance, you’ll be negotiating with a builder’s agent instead of a realtor and the homeowner. Your financing may also be different—if you’re taking on new construction, you will probably get a new construction loan that’s only issued for as long as it takes to build the home.

WHAT ARE THE PROS AND CONS OF BUYING NEW CONSTRUCTION?

Pro: it’s new.

Simple, but true. There’s something really comforting about knowing you are the first person to live in a space. There’s no unknown maintenance history to worry about, and it’s fresh and clean—no mystery stains or smells. Finishes are new and won’t (most likely) need to be updated for a long time.

Con: you don’t get to choose the builder.

If you’re buying something that’s already being worked on by a builder, you don’t have the chance to pick who you want to work on the home. If you’re lucky, that builder will have tons of experience, but that isn’t always the case. It’s always important to do your research on the builder too, not just on the property itself.

Pro: it’s probably very energy efficient.

New homes use new materials, all of which have evolved to become more energy efficient. You might even have say in what materials are used as the home is completed, so you can push the envelope when it comes to energy efficiency.

Con: negotiation can be complicated.

When you buy a “typical” pre-owned property, you’re working with regular homeowners who may be facing different factors that might cause them to accept a lower offer. With new construction homes, the builders understand the market, so the price may be harder to negotiate.

DO I NEED TO REALTOR TO BUY A NEW CONSTRUCTION HOME?

We highly recommend recruiting your own realtor to represent you during your new construction purchase. If you opt to not use your own agent and go at it alone, you’re stuck working with someone (the builder’s agent) that has the builder’s best interest at heart, not yours.

There are so many perks of working with a realtor on new construction—and here’s a few. A dedicated new construction agent can help you understand the best time of year to buy, assist you in picking a high-quality builder, negotiate extras and customization, and you’ll have someone on your side during the home inspection process.

Looking for a new construction agent in Madison? Our team is ready to help you score a brand-new property that meets all your needs. Give us a call at (608) 957-2683 today!