Buying a new house can be a great experience. Buyers may be able to purchase a home which can be customized. They may be able to pick colors, carpet, tile, and perhaps even move walls and add rooms. Plus the opportunity to be the first to hang a picture, use the kitchen, move in furniture, and make the house a home is special. But there are differences between buying a used home and a new home that buyers should be aware. When a buyer is purchasing in a subdivision, buyers should know the following:
- The price is the price. Subdivision builders rarely lower the price below their asking. Buyers may be able to get the builder to "throw in" a refrigerator, A/C, landscape the backyard, or provide some other item of value, but lowering the asking price impacts the sale of additional homes and the builder rarely will do this if the market is strong.
- In Oregon, the entire home is warranted for a full year. That means if anything happens to the property in the first year that can be considered a construction issue, the builder is required to make it right. This should not be confused with home insurance issues. If the buyer floods the kitchen floor by forgetting to turn off the water, that is not the builder's problem!
- When buying early on in the construction process, the builder may require "non refundable earnest money" which is released to him/her. This assures the builder that the buyer will stay in contract, especially when customization is occurring. Buyers need to be aware of this and that if for some reason they end up not being able to close on the property, that earnest money is gone and will not be returned.
- If some of the customization desired of the buyer and agreed to by the builder is an "upgrade" (usually more expensive or different than what the builder had planned originally) most builders expect immediate payment from the buyer. This, too, is nonrefundable should the buyer not be able to later close on the home.
- Until closing, the home belongs the property of the builder. Excited buyers often want to view the home under construction; some even want to make "changes" after hours themselves. Be aware that such occurrences can be considered trespassing and personal changes can be considered vandalism. Builders usually have set times in which they can make the home available for buyers to view the progress - these times need to be honored.
Buyers of new construction outside of a subdivision may have more flexibility. Small spec builders - builders building a house here or there who don't have to worry about future sales of a similar house used in appraisals, may be more willing to adjust price or throw in extras without charging upgrade costs. It never hurts to ask.
In our Bend Oregon market, we are seeing alot of new construction. If you have questions concerning this, please give us a call today! Bend Oregon Real Estate.
