Things to Consider When Buying New Construction
CAMERON WARD
In a growing community like the Manhattan area, new construction home sales are a significant part of our real estate market. Whether you're looking for an affordable starter home, more space on Manhattan's east side, or a golf course view on Manhattan's west side, there are many new construction options to fit your needs. Buying a new home is a bit different than buying an existing home, so here are some things to consider:
Who is the builder? Our community is fortunate to have many great home builders who commonly focus on a specific niche or price range. Ask for reviews of that builder, ask your Realtor about long-term quality, and walk away if you have a concern about working with that builder. Whether it's a spec or custom home, the quality of work and reputation of that builder will follow that house for years to come
Does the home have special taxes? Special taxes are an additional tax on new construction homes that pay for the infrastructure costs associated with building. Specials are somewhat unique to Manhattan—other communities don't see these infrastructure costs bonded as special assessments. Specials in Manhattan typically last for 20 years and can add a significant amount to your payment. Make sure to ask your Realtor about specials.
Is the home consistent with the neighborhood? Is the home significantly overbuilt for the neighborhood? This can be a problem not only for an appraisal, but when you go to sell, it could be a challenge.
Is there an HOA or restrictive covenants? Newer neighborhoods commonly have an HOA or covenants that prohibit certain things like fencing, outbuildings, pets, etc. Make sure to review all of these restrictions before purchasing a new home.
Don't skip a home inspection! Many buyers think that a home inspection isn't important for a new home, but it absolutely is! While you're under contract, you'll have the opportunity to have an inspection done and request repairs for any items that aren't to code. New homes aren't perfect, so having a qualified inspector identify any issues is crucial.
What additional costs will you have? Most new homes don't include things like window coverings/blinds, landscaping, washer/dryer, or other items that typically will be in an existing home. Estimate these costs before you close, so you don't end up with any surprises.
