1.

The
cost
of
upgrades

One
of
the
biggest
mistakes
buyers
make
is
underestimating
the
cost
of
upgrades.
It
may
be
tempting,
but
it’s
more
cost-effective
to
invest
in
structural
improvements
that
cannot
be
easily
changed
later,
such
as
framing
modifications
or
window
placements.
Cosmetic
updates
like
flooring,
paint
or
finish
work
can
sometimes
be
done
after
closing
at
a
lower
cost.

Buyers
often
assume
what
they
see
in
the
model
home
is
what
they
will
get,
however,
model
homes
are
designed
to
showcase
high-end
upgrades.
It’s
important
to
clarify
which
features
come
standard
and
which
require
additional
investment.

Buyers
should
also
budget
for
post-closing
expenses
such
as
landscaping,
window
treatments,
built-in
cabinetry
and
appliances
that
may
not
be
included.
Transfer
taxes,

title
policies
and
potential
appraisal
shortfalls
should
be
considered.

2.

Negotiating
the
listing
price 

Another
misconception
is
assuming
the
listed
price
is
non-negotiable.
Many
builders
offer
incentives
or
are
open
to
negotiating
closing
costs,
lot
premiums
and
other
expenses.
Having
an
experienced
realtor
can
be
invaluable
in
identifying
these
opportunities
and
advocating
on
your
behalf.

3.

New
build
vs.
older
homes

Purchasing
a
new
build
ensures
that
all
mechanical,
plumbing
and
electrical
components
are
up
to
current
codes.
New
builds
come
with
builder
warranties
and
construction
quality
may
vary
due
to
labor
shortages,
and
delays
can
occur.

Existing
homes
may
offer
immediate
cost
savings,
such
as
established
landscaping
and
built-in
features.
Although
down
the
line,
they
may
come
with
older
mechanical
systems
that
could
require
costly
repairs.

4.

Red
flags

Choosing
a
reputable
builder
is
crucial.
Transparency
in
the
process
and
clear
communication
can
make
or
break
the
experience.
Buyers
should
ensure
they
have
direct
access
to
their
building
superintendent
to
stay
informed.
Each
builder
has
its
own
purchase
agreement.
Working
with
a
knowledgeable
realtor
is
essential
to
understanding
contractual
obligations
and
contingency
timelines.

5.
Negotiating
with
the
builder

In
addition
to
negotiating
price
reductions,
buyers
can
also
discuss
lowering
the
costs
of
design
incentives,
closing
cost
assistance,
lot
premiums
and
even
rate
buy-downs
when
using
the
builder’s
preferred
lender.
For
quick
move-in
homes,
closing
dates
can
also
be
adjusted.

6.
Understanding
builder
incentives

Buyers
should
carefully
review
incentives.
Many
incentives
are
tied
to
using
the
builder’s
affiliated
lender
or
title
company,
which
may
have
specific
requirements
or
deadlines. 

7.
Interest
rate
hikes

Interest
rate
fluctuations
can
significantly
impact
affordability
during
a
lengthy
build
process.
Some
builders
offer
extended
rate
locks
or
float-down
options
to
help
buyers
manage
this
risk.
If
no
rate
protection
is
available,
buyers
should
ensure
they
still
qualify
for
their

mortgage
in
case
of
a
rate
increase.

8.
Third-party
inspections

Although
city
and
county
inspectors
verify
code
compliance,
hiring
an
independent
home
inspector
can
provide
additional
peace
of
mind. 

9.
Construction
delays
and
final
walkthroughs

Construction
timelines
are
fluid
and
delays
can
happen.
Buyers
should
avoid
scheduling
movers
or
finalizing
logistics
until
the
builder
confirms
the
closing
date.
It’s
essential
to
test
appliances,
plumbing,
garage
doors
and
fixtures
during
the
final
walkthrough
while
documenting
any
cosmetic
issues
like
paint
touch-ups
or
stucco
repairs.

10.
Builder
warranties
and
post-move-in
concerns

Builder
warranties
vary
but
typically
cover
different
aspects
of
the
home
over
 
 
specific
time
frames.
Buyers
should
document
any
post-move-in
concerns
in
writing
and
follow
up
persistently
with
the
builder’s
warranty
department.

11.

Why
you
need
a
Realtor

A
realtor
is
a
vital
advocate
throughout
the
new-build
process.
While
the
builder’s
sales
team
represents
the
developer,
a
buyer’s
agent
works
solely
in
the
buyer’s
best
interest.
In
cities
like
Las
Vegas,
where
new
construction
is
prevalent,
partnering
with
an
experienced

real
estate
professional
can
make
all
the
difference
in
securing
the
best
deal
and
avoiding
costly
mistakes. 

Buying
a
new
construction
home
is
an
exciting
but
complex
process.
By
understanding
potential
pitfalls,
negotiating
strategically
and
working
with
an
experienced
realtor,
buyers
can
make
informed
decisions
and
enjoy
a
smooth
path
to

homeownership.

Darren
and
Karen
Pohl
are
real
estate
professionals
with
The
Pohl
Group
at
huntington
&
ellis.

This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece:



[email protected].