I recently received an email from a buyer who was interested in a new construction neighborhood in an area where I actively sell homes.  This buyer wanted to know whether to buy new construction in this market.  Here’s what I told him to consider in this market:

1. Pick the best of the lot because you make your profit the day you buy your home.  Unlike driving a new car off the lot which immediately depreciates, your home can appreciate or depreciate based on the market conditions AND the choice you make.
2. Purchase from a known builder with a proven track record.
3. Negotiate on pricing and/or upgrades.  The sales price will be a business decision to the builder, so don’t hesitate to make an aggressive offer.  If the price doesn’t work, the builder will counter the offer.
4. Look for special builder financing.  Some builders have special pricing available for jumbo loans.
5. Buy a home in a good location, close to transportation, shopping, and schools.
6. Pick a good lot.  Stay away from lots that are marginal.  Lots that back to busy roads or are under power lines, as an example.
7. Look for standing inventory, completed homes the seller will want to get sold.  Prices are more negotiable for any completed homes.
8. Pick a functional, good floor plan.
9. Pick a home with lots of light and openess.
10. Make sure the home has great finish work and has the most up to the minute features.
11. Have the home inspected when you buy it!

Okay, so I came up with 11 items.  Inspecting the home is critical, so make sure you do it.  Over the years, I’ve sold new construction homes in which the insulation was missing in the attic, the dishwasher was not hooked up, and the furnace had not been cleaned out after construction.  All easily fixed.  However, if the issues were not remedied before buying the home, they could have become major problems later.