I am thinking of buying a home?

Question

There is a new building which is still under construction, but you can buy in advance. Has anybody had bad experiences with
buying a home not already built? Quality is also on my priority list.
I would not want to be stuck with a home where the paint starts cracking the first week after you move in. What are the things that I should look for to ensure I am getting quality?

Thanx dragonfly, i see your point, but I was thinking that i might be able to get a better deal, since it is not built yet, and the builders need to raise the capital.

Answer 1

The U.S. is currently on the back side of the mountain (down) for home prices over the next few years.

You may consider reading this report if you're unclear where prices are headed.

http://www.dynamictraders.com/images/SpecialReports/dt_specialreport_bonds_507.pdf

Buying 'BEFORE' homes are constructed works like a dream when prices are going up.

Since prices are going down, they work like a nightmare.

Answer 2

Locking yourself into a purchase contract before a home is build is a bad idea and here's the reason why. The actual market price for the home can fluctuate between the time you sign your contract and the the time the home is completed. If you sign a contract now and the home is appraised for less than the amount of your contract once it's completed, you will be buying it for more that the prevailing market price and you will actually be loosing money to buy this new home.

Your second concern is about quality. Once you've signed a purchase contract for a home that is not built, there is nothing to look at. If you're not familar with the home builder or do not have available examples of previous work that they've done, you're taking a big risk. At any rate, you're going to want to inspect the home once it's completed and before you move in. If you don't like the quality of the home that was built, you're stuck with it. You'll have the opportunity to go back to the builder with a "punch list" of things that they did not build right or messed you before you take physical possession of the home, but after that it's all yours. If you're not happy with it, you will still have to pay the mortgage while you put the property up for sale. And think about the fact that if you don't like the quality of the place, how hard it's going to be to sell if you get into that kind of situation.

I'm providing you this advice from the perspective of an investor and not a mortgage broker who's going to get paid their fees regardless of the fact that you got a good or bad deal for the amount of money you paid for your home.

Answer 3

You might want to make sure that all permits and codes are met. Just because a builder looks legitamate don't rely on just what you see. Go in and talk to the salesperson, get all the information on the homes. Make sure you understand what the basic home has and what the upgrades will actually cost you in the end. Also time frame is not always clear, look closely at all the models for defects (there will be some) such as toliets cracked down by the bolts, counter tops both kitchen and bath, light fixtures not completely in, appliances not all installed, etc.

Answer 4

don't let the idea of buying a prebuilt home scare you. Of course it's better to buy one that's already done, but if you take the right steps you should be okay.

1. do a background check on the developer/ construction company to see if it's reputable
2. look into their previous projects, maybe even visit the sites and talk to tenants.
3. make sure the land its being built on is certified
4. read, read, and read the agreements over again, if you're dyslexic, have a lawyer go through any black and white you may have to sign
5. always make sure you're covered with insurance.

Answer 5

I have built a home for investment. A year warranty usually come with the property. Review the contract with the sales associate. The only thing is that my closing dates keep moving because of permits and stuff like that. Overall u get a way better price so it worth it u will have equity before u even close usually.

Answer 6

you wait until the units are completed. you have no assurance of quality if you buy before it's done because in the builder's mind, they have the sale, there is no incentive now to "do it right". I'm not saying all builders cut corners, but if they already have money in the bank from your sale, they will most likely want to use that money for their next project/sale, not to make your place perfect.

Answer 7

traditionally, procuring a house has been a extra useful investment than renting and making an investment the surplus (if there is any) in something as nicely actual sources. even nonetheless, that has no longer been actual in recent times, partly because of the fact actual sources went up too quickly and desires time to chill off. It additionally pertains to inhabitants growth, immigration, costs of activity and different factors that impact call for for housing. issues will probable return to the way they have been previously - then it is going to likely be too previous by using purchase. yet another attention is proximity to jobs. a house interior the rustic could be notably, yet conserving a mushy funds pass could be extra durable than in case you lived someplace like Silicon Valley the place jobs are extra considerable. Having to sell and relocate for a job is obviously extra durable than breaking a hire, and by way of this unpredictable job marketplace, willingness to pass is mandatory for survival.

Answer 8

best quality is older craftsmenship. find a fixer upper and work it to suit yourself. no time? r u after a home or a profit?