New Home Buying Process
The Coldwell Banker Residential Brokerage New Homes
Division is staffed with experienced individuals who are experts in the field.
This specialty division represents more than 150 builders and markets 150
new home communities annually. The New Homes Division is respected in the
industry and has received sales and marketing awards from the Home Builders
Association of Connecticut.
Select a Geographic Area
A buyer needs to select a geographic area that is suitable for their individual
lifestyle. Today lifestyles are the key determinant to making an informed
home buying decision.
The purchaser should determine what is a reasonable commute to work and what
the means of transportation will be…via interstate or mass transit. Schools
will be of great interest to the purchaser with a family.
If seeking a pre-retirement or retirement home, the purchaser should determine
the proximity of family, friends and existing home.
A determination should be made as to where consumer goods and medical services
are made available.
Affordability is a key factor in any home buying decision. Knowing if this
is a move-up in home value, or a lateral or downward move, will move the decision-making
process right along.
Once these lifestyle issues can be resolved, the search can be narrowed to
several qualifying locations.
Select a Builder
Once location has been selected and a Coldwell Banker Sale Associate has shown
the purchasers several new home sites, the next step is to research the builders.
A reputable homebuilder will belong to a local homebuilders' association.
Also, it is advisable to check with the local building inspector for an opinion
on quality.
Choosing a builder is just as important as choosing the style of the home.
The builder not only has the responsibility for the largest investment a purchase
may ever make, but his or her skill and preferences can have a direct impact
on future comfort and happiness.
Not all new home communities are the same. Each one carries the distinctive
mark of the builder, whether that happens to be innovative floor plans, distinctive
craftsmanship, bold architectural statements, or just great value. Each builder
also has a different personal style and way of communicating with his or her
clients.
The purchaser should consider references of past clients. Drive through one
of the builder's previous subdivisions on a Saturday morning and try to get
a random sample of opinions. Ask questions like, are you happy with your home?
People are usually willing to share their joy or their sorrow.
Determine the Amount of Deposit
Now that the right location and the right builder have been selected, it is
appropriate to go to contract. Most builders require anywhere from 10% to
25% down in order to start a home. If the home is up and standing, the builder
will accept 10%. If a custom home were to be created specifically for the
purchaser, the builder would then expect a 25% deposit at contract.
Selections increase in proportion to the price tag of the home. Correspondingly,
the time it takes to build the home increases with the size and the number
of custom features selected.
Realistically, a home delivery date range, if started from scratch with an
improved road to the home site, can take anywhere from 120 days to 18 months.
Remember the builder is anxious to keep the home delivery schedule on time.
The builder does not get paid until closing.
Pre-Settlement Inspection
Before the closing, a home inspection tour will be conducted. During the tour
the builder will point out all of the features and provide warranty information
on each. Learning about maintenance and upkeep responsibilities is very important.
Most new homes come with a one-year warranty on workmanship and materials.
However, such warranties do not cover problems that develop because of failure
to perform required maintenance. Many builders provide a booklet explaining
common up keep responsibilities and how to perform them.
Manufactures provide warranties that are covered by the manufacturer not the
builder. The builder is responsible for any building code violations that
occurred. However, in the unlikely event that there has been a violation,
(because builder research was conducted) the responsibility becomes the builder's.
During the inspection the purchaser should look for scratches in the counter
tops and flooring. Walls should not have gouges and the moldings and trim
should be square. The purchasers should take pictures before the title is
taken, particularly if a problem is discovered. The builder will prefer under
all circumstances to conduct any and all repairs prior to the purchaser moving
in because it is easier for them to work on repairs in an empty house.
There are over 30,000 parts in a new home. Therefore the propensity to find
a small imperfection is great. However, many builders conduct their own thorough
inspection before the purchaser sees it. Most builders employ a cleaning service
to make sure the home is clean prior to the closing.
After the Closing
One year later it can be typical to find settlement cracks in the drywall
or nail pops. These are easily remedied and are the responsibility of the
builder. A call to the builder is recommended prior to the termination of
the one-year warranty.
