Consumer Info...

Tips for Buying a New Home

Starting Your Search

Once you have thought about the type of house you want, where should you look for a builder? First, the real estate section of your newspaper is a good starting point to learn which builders are active in your area, the types of homes they are building, and the prices you can expect to pay.

In addition, your local Home Builders Association has a list of reputable builders who construct well-built products. Members of such organizations often subscribe to a code of ethics. Local real estate agents may also be able to aid in your search.

Ask friends and relatives for recommendations. Ask about builders they have dealt with directly, or ask them for the names of acquaintances who have recently had good experience with a builder.
 

Making the Right Choice

Once you develop a list of builders, find out about their reputations and the quality of their work. Recording all such information ? as well as your own impressions ? about specific builders and homes in a notebook helps to make comparisons later.

The best way to learn about builders is to visit homes they have built and talk to the owners. Ask builders on your list for the addresses of their recently built houses, subdivisions, or town house/condominium complexes. Drive by and see if the homes are visually appealing.

Look at the homes that are the same style as you plan to buy ? if you are interested in a two-story home, look at two-story homes rather than split levels. Visit on a Saturday morning when people are outside doing chores or errands. Just introduce yourself and say you are considering buying a home from the builder who built their home. Consult more than one home buyer for each builder; the more people you talk to, the better the cross section of opinion you'll get.

Ask people if they are happy with their homes and if the builder did what was promised and did it in a timely manner. Ask if they would buy another home from this builder. Usually, people tell you if they are pleased with their homes. And if they are not, they'll probably want to talk about it.
 

Shop Quality and Value

When examining a home, look at the quality of the construction features. Inspect the quality of the cabinetry, carpeting, trim work, and paint. If you feel incapable of judging such things, take a knowledgeable person along with you.

Always keep value in mind when shopping. Just because a home is less expensive than another does not mean it is a better value. Likewise, a more expensive home does not assure a higher quality.

A home is primarily a place to live, but it is also an important investment. Consider the appreciation potential of any home. Be concerned with the value you are getting for your money regarding location, housing supply and demand, and other market factors.

Another important aspect of value is design quality. In viewing each home, determine whether it lends itself to the type of lifestyle you want to lead. Look at the amount of interior living space and how efficiently the space is used: Are there enough bedrooms and bathrooms? Is space sufficient to accommodate special interests or hobbies? Find out if the builder is using state-of-the-art energy features ? both in equipment and insulation. Think about the amount of upkeep required both indoors and out.

Consider the location of the property: Is it convenient to schools, shopping, and transportation?
 

Warranties/Service After the Sale

An important criterion for selecting a builder is the warranty provided on the home. Ask to see a copy of the builder's warranty. Although reading legal documents is tedious, read the warranty to understand what protection you would have. Don't wait to read it until after you move in and a problem arises. If you have any questions about the coverage, ask the builder.

Most builders offer some form of written warranty. Many builders back their own warranties on workmanship and materials, typically for one year. Other builders offer warranties backed by an insurance company. To get an insured warranty, you must buy a home from a builder who belongs to a warranty program ? you cannot simply select a home and then ask a builder who does not belong to a program for an insured warranty.

Also, find out from each builder what kind of service you can expect after the sale. Typically, a builder makes two service calls during the first year after you move in to repair non-emergency problems covered by your warranty. The first call is usually 30 to 120 days after move-in, and the second is around the eleventh month - right before any one year warranties on workmanship and materials would expire. For emergencies, the builder should send someone to your home right away.

Be Thorough

When choosing a builder, be thorough and ask a lot of questions. Get as many specifics as possible. If you receive the answers verbally rather than in writing, take notes. Never hesitate to ask a question for fear of sounding stupid or uninformed. What seems like a stupid question might yield an informative answer.

Buying a new home is one of the biggest and most important purchases you will make in your lifetime. By doing your homework, you will be able to shop for a home with a sense of confidence and knowledge that will help you make the right decision.