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What to consider before buying new or existing homes

On Behalf of | Mar 17, 2023 | Real Estate Law

Investing in real estate is one of the most significant decisions one might consider in life. As much as possible, you should be confident about your purchase, especially if you are a first-time home buyer. 

Here are some things to consider.

Which is better: existing homes or new construction homes?

There is a lot to consider when choosing between new construction and existing homes. Existing homes might have larger yards and be part of more established neighborhoods. Homes built years ago may have lower taxes, although you might have more repair and maintenance costs.

New construction homes can accommodate modern floor plans and wiring technologies, and you can have more control over the finishings and customization. New homes also tend to have lower maintenance costs, too.

Is there a difference in the buying process?

The selection process for both types of homes is almost the same. For many people, it starts with finding the right location. Do you want a large yard? Do you need to be downtown or prefer the suburbs?

If you opt for a new construction home, choosing a dependable builder should be one of your top priorities. If you can, get some references, and confirm if they belong to any home builders’ association. 

You can visit their earlier projects and get an idea of how they work. Doing so can add reassurance that things will go well. It can also help avoid construction defects claim later on. 

Reviewing contracts is vital

Whether buying an existing or new home, carefully reviewing contracts is always important. Homebuying and building contracts can be incredibly complex, but do not be tempted to skip this step. If you are in doubt, you can consult a real estate attorney for guidance.

Reminders before closing the deal

Conducting a pre-closing inspection can help you assess the practical details of home maintenance. Inspectors can check for small cracks, issues with piping or water supply concerns before closing out. 

Pre-closing inspection is a must for new construction homes. And builders may offer warrantees and repair services, so call them at once if anything needs fixing after you move in.

Residential real estate transactions can initially be intimidating, but knowing the process is a start in getting hold of your dream home.