Z-Real Estate

Best Practices When Buying New Residential Construction in Alexandria and Throughout the Mid-Atlantic

(Photos courtesy of the Seward Group)

Alexandria, VA – Hello, fellow Alexandrians! Yay for fall, cooler weather, and another beautiful season for all to enjoy in our fabulous town!

Have you ever thought about buying a new construction home? It could be a new subdivision development or an infill home built on a property where a smaller home existed and was razed. With our current resale inventory shortage, considering a new build is an attractive proposition.

With new construction, depending on the project stage and the builder, you may have the chance to customize the finishes and some design features. We have put together some best practices to consider as you navigate this purchase. We are, of course, always here to assist you with your real estate needs.

  • We recommend that you always work with a professional realtor. Your highest and best interests should be represented in any home purchase. Generally, the buyer brokerage commission is paid by the builder.
  • We recommend you research the builder and neighborhood before entering into a contract/starting a project.
  • Your agent and you should review any builder contracts carefully, and you are welcome to have an attorney review them as well. Builder contracts are onerous, and there are long delays built into these contracts. Be careful about wording regarding your Earnest Money Deposit and any contingencies you may or may not have provided in the builder’s contract.
  • Carefully review the standard vs. upgrade features and what this home will cost you when you add all the finishes and features you desire in your new home. Your agent can assist you in negotiating some extras and upgrades.
  • Know what you are buying. Visit a model home or visit homes that the builder has previously completed. Call their references if they are a local builder, or research their reviews online.
  • Don’t skip the home inspection. Just because you are buying a new home does not mean there won’t be issues that must be addressed.
  • Be clear on the builder warranty. Each state has specific requirements for new builds, and each builder may have additional warranties for punch lists post-closing.
  • Builders often package/promote a preferred lender and title company to buyers while offering a discount or a closing cost rebate for using their in-house partners. Do check with your agent’s preferred local lender as well to compare costs and see if the builder’s preferred partner credit shakes out to be a better deal or not. Always research lender and title company reviews and know that your agent is an excellent resource for lenders and title company recommendations.

Ready to look at new home construction? Want us to introduce you to some excellent local builders? Let’s have a conversation!

Article written by The Seward Group at TTR Sotheby’s International Realty. The Seward Group offers full-spectrum concierge real estate service at all price points and would be honored to help with any of your real estate needs. Email: [email protected], visit www.seward-group.com, or phone (703) 298-0562.

ICYMI: Protect Your Biggest Investment – Your Home – This Fall!

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