15 Facts You Must Know Before Shopping For A New Construction Home

MYTH #1: Builder contracts are always fair and protect the interests of the buyer.
FACT: Builder contracts are drafted to protect the interests of the builder, not the buyer.

MYTH #2: A Realtor® review of your builder contract is adequate to protect your interests.
FACT: Implying that a contract review is sufficient is not only unethical and an illegal attempt to practice law without a license, but it’s just plain wrong.

MYTH #3: A Realtor® can change your builder contract to protect your interests.
FACT: Realtors are only allowed fill in the blanks on a form contract drafted by an attorney on their behalf. Only an attorney can properly review, interpret, draft, and amend a builder contract to protect your interests.

MYTH #4: If a house passes code inspections, it must be well-built.
FACT: Code requirements only set the minimum standards for safe building practices. They do not represent the best industry practices.

MYTH #5: A Realtor® is qualified to inspect your new construction house.
FACT: Realtors have no training in the construction trades and specifically disclose the fact that they are not construction experts.

MYTH #6: Every ASHI® approved inspector is qualified to inspect your new construction house.
FACT: ASHI inspectors are trained to find defects in existing homes, and are not required to have any real-world construction experience.

MYTH #7: The lot you choose doesn’t matter.
FACT: The lot you choose may not only limit what you can do with your property, but can also greatly affect your home’s resale value.

MYTH #8: You should get every option you can afford.
FACT: Some options are much more profitable for the builder than others. By doing the work later, you can save thousands.

MYTH #9: You should only get options that make the house look more appealing.
FACT: Some decorative options can be easily added after you move in, but others must be done during construction and are well worth it.

MYTH #10: Home designs don’t change or improve from year to year.
FACT: Popular options and trends are constantly changing. Some are just fads, but others have staying power.

MYTH #11: Builders are required to disclose the zoning of neighboring properties and the existence of future road projects.
FACT: Builders have no legal obligation to disclose the current or planned zoning of nearby parcels or discuss road projects that may impact the value and quiet enjoyment of your property.

MYTH #12: The school district only matters if you have kids.
FACT: The quality of school districts can vary greatly and have a tremendous impact on your property’s value and appreciation rate.

MYTH #13: Your lender is giving you the best deal because they quoted the lowest rate.
FACT: The rate is only half the story. Fees, points, and other charges can add up quickly; and, if they can’t deliver, none of it even matters.

MYTH #14: Buying a new house won’t change your tax strategy.
FACT: Local tax rates vary tremendously and the income tax implications of selling your old house and buying, financing, moving into, and improving your new home makes proper record keeping, reporting, and tax planning crucial to your overall financial strategy.

MYTH #15: The process of buying a new construction home is a simple, care-free experience.
FACT: Buying a new construction home is an always exciting, sometimes frustrating, and often an adventuresome experience – a team of professionals by your side can properly prepare you so you know what to expect, share expert advice, minimize common headaches and hassles, and save you valuable time.

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