Thinking about buying a new construction home in Texas?

There is just something special about buying a new construction home. However, the process is much different than buying a resale home. It can be intimidating if you don’t know what to expect going into it. 

Main Differences…

• Limited Negotiations 
• No Option Period  
• Builder Incentives 
• Open Ended Closing Date 

Limited Negotiations 

When you make an offer on a used/resale home everything is negotiable, from price to repairs. You can submit an offer as low or high as you wish. No promises that the offer will be accepted, it may even be declined or the seller may submit a counter offer. This is not the case when you buy a new construction home. With new construction the price is typically set and is not negotiable, in rare circumstances the builder may be open to hearing a lower offer but you should not count on it. 

Option Period 

The option period is typically a 10 day period that begins after you sign the contract to buy a home. Where you pay the seller a small fee to take the home off the market so you can do an inspections. During this period you can re-negotiate the price or repairs.  However, in many cases when you sign the contract to buy new construction your home won’t be finished. Therefore there is no way an inspection could take place so builders do not include an option fee in their contracts. 

Builder Incentives

One of the perks of buying new construction is the builder incentives that are often offered. These can range from new appliances, money to be used on upgrades, credits towards closing, etc. They vary from builder to builder as well as on market conditions but it is definitely something to look for and ask about.

Closing Date

This one can be stressful for new construction buyers. Closing dates are often pushed back due to a wide variety of circumstances, from weather to material backorders. if you don’t have a flexible moving situation this can be very hard to bear. Builders do not even put a closing date on their contracts so you are at their mercy when it comes to you closing and getting the keys. Be sure to clarify with the builder on a realistic timeline for completion. 

Summary  

Overall, buying a new construction home in Texas can be a rewarding experience. With that being said there are good and bad builders so it is always best to shop around and consult multiple companies to ensure they are going to be the right fit. 

If you have any questions we are always available at 281-352-9972