Buying a home is a major milestone – one we make with excitement and careful decision-making. For many, it’s a realization of a dream, but choosing between new construction and existing homes can be a real dilemma. Millions of Americans opt for new construction, as proven with 1.41 million new homes built in 2023.
New construction homes appeal to many because they offer many customization options. You can personalize key details like flooring, cabinetry, or color scheme to reflect your style. New homes also have contemporary layouts, like open floor plans or large kitchens, which are more energy efficient due to the materials used. Builders may also incorporate energy-efficient appliances and features, like double-pane windows to further reduce utility costs over time.
So how does one go about buying a new house? Here’s how to buy a new construction home in 7 steps.
Research Your Options
Since a house is one of the biggest investments anyone will ever make, it makes sense to do thorough research and learn everything there is to know about it.
As the name implies, new home construction is a new property no one has lived in. You have several options when it comes to new construction homes in Wisconsin. You can choose from spec homes, semi-custom, and custom homes.
- Spec Homes, also known as “move-in ready” houses, are structures that are almost complete so you can move in anytime.
- Semi-custom houses follow a fixed floor plan, but lets you choose certain design components. For example, you can pick the type of fixtures or the flooring.
- Custom homes offer full control over the design. You’ll work with a builder to design your home, from choosing the floor plan, room sizes to picking out the materials and finishes.
Determine Your Budget
New home construction is a significant financial commitment, with an average price of around $435,000. That doesn’t include other expenses like putting up a fence or landscaping.
Many home buyers become so excited at having a home designed for them that they exceed their budget. Don’t fall into this mindset. Make sure you understand your income and your spending situation. Come up with a realistic budget and stick with it.
Get pre-approved for a mortgage to determine your realistic buying capacity. Pre-approval also provides a solid foundation for builders to work from.
Partner Up with a Real Estate Agent
A knowledgeable real estate agent can help make the buying process go faster. Work with one who specializes in new home construction. He or she can help navigate contracts and advocate for your interests, and recommend reputable builders to work with.
Pick a Reliable Builder
Like a real estate agent, a reliable home builder will make buying a new home construction a breeze. Research and check out the builder’s past projects and gather client feedback. You can also ask for references from previous clients and tour completed projects to get a feel of the builder’s style and work quality.
Choose the Best Lot and Location
Where your home sits in the community can greatly impact your enjoyment of the property. When choosing your location, consider factors like street views, backyard orientation, and proximity to community amenities.
Sign a Contract
Once you’ve chosen a location and home design, the next step is to sign a contract with the builder. Most builders will need a deposit which can range anywhere from $1,000 to $2,000. Make sure your contract is as detailed as possible, covering details like timeline and potential issues like supply chain delays. It’s wise to have a lawyer check your contract and add any addendums you and the builder might have. Don’t have a lawyer? Have your real estate agent review it. It’s their job to protect your interest.
Do Regular Inspections During Construction
An experienced builder will have a timeline for a Wisconsin new home construction. Inspect your home at key points of the construction process, like during laying the foundation, drywall installation, or plumbing to ensure that everything is on track. Then, do a final inspection before closing on your new home construction to address any last-minute repairs or issues.
One Last Thing
As you move forward with your new home construction, remember to keep a close line of communication with your builder. Regular updates and open discussions will help ensure the success of your project. If you’re looking for expert guidance, Elegant Builders is here for you. As one of Wisconsin’s premier construction contractors, we specialize in designing and remodeling homes with exceptional craftsmanship. For questions or to start planning, call us at (262) 825-4777 or send us a message.
