Considering New Home Construction in Ottawa?
Whether to buy an existing home or have a new one built is yet another decision to make during the home-buying process. If you decide to go with new construction, a real estate agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other terms with the home builder.
Below are some basic pointers to prepare you for the journey ahead.
Selecting a Builder
Shopping for a large production or custom home builder can be a daunting task. Start by defining what architectural styles appeal to you and then seek out the builders in your area who offer those styles. Due diligence is essential. Ask friends, family for referrals to get first-hand accounts; verify the builder’s new home warranty status with Tarion.
The Builder Representative and Your Real Estate Agent
A builder representative’s ultimate goal is to sell you their employer’s product. Their role is to provide a wide range of information to help you in your decision-making, from building restrictions, easements and roads to inspections, warranties, upgrades and rebates. A real estate agent that knows new-home construction will be able to help you analyses through all the data and point out to you the downsides and upsides of each line item. Your agent also can look out for your interests in reviewing the builder’s contract, which often contains more legal lingo than consumer-friendly language.
It’s All about Timing
Market conditions greatly dictate a builder’s incentive to offer a deal you cannot refuse. When a builder has inventory increasingly building up, his carrying costs start to add up. When this happens, a builder might be more favorable to strike a deal, whether it’s throwing in upgrades or taking a bit off the asking price, a real estate agent can help you know when market conditions are right for these benefits. Also, watch for builder close-out sales. Builders promote these special events when a new subdivision is near completion, but empty inventory still remains.
A Word about Paying Up
While there are always exceptions, most builders require a deposit when a purchase agreement is signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to closing, unless the agreement states otherwise, you will lose your deposit. Make sure you understand every detail in the builder’s contract before signing it.