Commentary: What to know before buying a new construction home

Question: Dear Kari, My husband and I are excited because we have decided to buy a preconstruction home. Can you please offer us some advice? Answer: Thanks for your astute question! The idea of buying a new home is a dream opportunity for many buyers, as they will be the first owner and will have the chance to customize several details to their specific liking. Good news, builders pay the agent's commission! In addition, you will not get a kickback if you do not use one. Your agent will represent you and ensure you receive the best deal from beginning to end. Important to make sure your agent comes with you the very first time you go to the builders. This is required by the builder and then your agent is on their record and then you may go to the builder after that as many times as you want alone.Since you will be buying a home that is not yet built, the builder will have a model for you to physically walk through. Now, let's look at what is crucial to look into before you sign on the dotted line. · Complete your due diligence and research on the builder's reputation and final projects. · If it is a new development, go to the planning department and find out what else is in store for the area. · Research where is the best lot for your needs. Make sure your lot does not have a location flaw, such as back up to a main road or high wire lines and so on. · You may see on the plot map a large lot, but walk the lot yourself to make sure there is not an up or down slope. · Make sure to ask if there will be any main pipes under your yard that may prevent an installation of a pool. · Become crystal clear on what are standard options and upgrades along with specific costs inside and outside the home. · Read the fine print, because builders do not use the CA standard purchase contract. They have their attorneys carefully craft up their own purchase contract. · Understand builder warranties and their time frames, as they are all not the same. · Be wise to never assume that a newly constructed home is completely free of defects. I would highly recommend to pay for a home inspection report before you close on your new home. Usually on your final walk-through, there will be some items that will need to be addressed. Be firm and do not close on the home until all items have been completed. The builder will say they will get to them right away after you close on your home. Be smart and demand they are completed before closing on your home and inspect them to make sure they have all been completed to your standard. I wish you the best in your new home purchase. Kari McCoy, CRS, has been a Realtor for 30-plus years and owns the Kari McCoy Group, Residential Real Estate, at Lyon Real Estate. Contact her at 916-933-5274 or email her at sold@karimccoygroup.com. #00841588