You can find endless information online about the horror stories people go through when purchasing a new home. Whether it’s moving into a house thats completely different from what they expected, endless delays, or hidden deficiencies that could cost thousands of dollars to fix, new home buyers are in danger of numerous pitfalls when dealing with builders directly.
Buying a new home from a builder does have it’s benefits. Occassionaly you can choose a layout and colours that work for you; have the peace of mind of newer materials; higher energy efficiency rating; and not have to worry about any problems that come with older homes, like cracked ceilings and old wiring. However, the anticipation that comes with purchasing a new home can cause you to overlook very important details that can turn your dream home into a nightmare.
To help all of the new home buyers out there, let’s discuss the top ten mistakes new home buyers make, and how to fix them.
Falling in love with the show home
Walking into a display home can get a buyer truly excited: Granite countertops, French doors, marble floors… all the bells and whistles you want in your dream home. Beware! The show home is generally full of all the upgrades the builder has to offer. If you want your place to look like the display, you could spend thousands in additional upgrades. The builder wants you to like these embellishments; that’s where he makes a profit. The industry standard is generally to charge double the sub-trade’s fee, so if you’re French door upgrade costs $2000, your builder paid $1,000 for it. Certainly this doesn’t mean avoid all additions, just be aware of what’s an upgrade and what isn’t. If you do want the upgrades, this is where you can negotiate a price. With a new build home, you can’t moderate the base price, but the more upgrades you select, the bigger the discount you can negotiate.
Relying on the floor plan
The floor plan would seem like a credible way to see exactly what your home will look like, but you need to make sure you get a breakdown of each room. Many brochures with floor plans will include the bathrooms and balconies as part of the square footage, which means your 1,000 square feet could end up being 750 square feet. Most new build purchases are based solely on artists renderings, but many don’t realize the builder has the sole discretion to change floor plans, images and layouts. Make sure you have all the plan details and get it in writing. If theres a large discrepancy between what you were promised and what you have, you can then negotiate your price or get out of the deal all together.
Coming Thursday, two more big mistakes new home buyers make and how to avoid them!
