New construction properties have a lot of appeal for many homeowners. The promise of a brand-new home with the potential to shape new experiences is enticing. However, newly constructed properties also come with unique challenges, many of which can be costly for new property owners.

Check out these seven common mistakes to avoid to save money and make the most of a new investment. 

1. Not Vetting the Builder

Each builder upholds unique standards. Some builders adhere to strict regulations and meet stringent compliances, while others take a more relaxed approach. One of the biggest and earliest mistakes a property owner can make is not vetting their builder.

Evaluating a builder’s reputation, considering their experience and having detailed discussions about the building process can help identify builders with your satisfaction at the forefront of their operations. 

2. Negotiating the Wrong Elements

Negotiations are common throughout the building process. Homeowners want to get the most bang for their buck, while builders want to ensure adequate pay for their expertise and craftsmanship.

However, it can be easy to get caught up in some of the more mundane aspects of a new property. For example, rather than only considering mortgage rates, homeowners should consider incentives like buy-downs and rate locks. Buy-downs alone can save tens of thousands of dollars over the course of homeownership.

3. Neglecting Timelines or Delays

The time it takes to build a home can vary, but the average is often somewhere between six and nine months. Although the prospect of having a new property is exciting, it’s crucial to consider these timelines and ensure they work for you. Additionally, many builder teams experience delays of some kind, meaning your expected date could end up being later than you initially thought. Be patient, and offer clear communication to minimize delays. 

4. Forgetting to Consider Related Fees

Inquiring about the community for the new build and related fees can help you avoid costly blunders. Communities with strategic plans often have ideas for adding or improving schools, grocery stores, entertainment options and health facilities.

Some of these organizations and businesses could impact local taxes, but at the very least, understanding the community can ensure you feel comfortable in your new home. 

5. Forgoing a Home Inspection

Some homeowners feel they do not need a home inspection for a new build. New construction should be free of problems, right? Not exactly.

An untrained eye may not be able to identify potential issues, and even things that seem fine on the surface could have bubbling problems that lead to issues down the road. Regardless of the recency of your home, an inspection can provide peace of mind and ensure you start your new journey on the right foot. 

6. Misunderstanding Home Warranties

Many newly constructed properties come with some kind of warranty, often in the one-year range. Warranties offer peace of mind by ensuring you can find replacements or repairs at reduced prices — or at no cost if you encounter issues with elements within the specific time frame the warranty covers.

Understanding what your warranty covers and how to maintain your warranty is crucial for saving money and enhancing at-home comfort. Items like heating and cooling systems, appliances and similar expensive fixtures often have warranties, so be sure to investigate their terms. 

7. Trying to Control Changes and Upgrades

While it may be tempting to create your dream house, you’ll likely find that your desires will shift throughout the process. Early in the process, your builder may give you some creative freedom, but as the building begins, it can be costly to mix drastic changes or implement new ideas. 

Create a budget and stick to it. If you want to pursue any unique upgrades down the line, consider creating DIY projects instead. Many aesthetic elements can change the feel of your home, and you can complete them on your own to keep costs low. 

Ensure Cost Efficiency and At-Home Comfort

Newly constructed builds are exciting opportunities to make a home your own. However, it’s important to keep a budget in mind and have ideas for ways to lower costs and protect your pocket in the future. Make sure your investment is safe and up to date for the best possible experience!

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