The thought of purchasing a newly constructed home can be intimidating from a financial point-of-view. While it might fit your concept of a dream home, you could be worried that it will cost too much.
But the truth is, there are ways to save you money when buying a new home, especially if you follow the right strategy. Here are some tactics that can help you buy a new home, without damaging your budget.
1. Picking the Right Time to Buy
The holiday season traditionally is a slow time for home sales for a variety of reasons – including that potential buyers are busy with the holidays, or are not willing to brave bad weather. If you’re willing to buy in November or December, you’ll be the exception, and builders may be more likely to offer price incentives, or be more willing to make a deal.
2. Buy a Model Home
Model homes are those houses builders construct to show buyers the “look” of the new subdivision. Chances are, you will walk through dozens of them during your new home search. Others have walked through them as well, and they may have even served as an office for the builder’s sales staff. They’re also likely to have been decorated – which means you don’t get to pick the color of your carpet or kitchen cabinets – but if you don’t mind a “gently-used” new home, you’ll probably get it for less than you would a typical new home.
3. Buy First, Or Last
Developing a new subdivision doesn’t happen overnight, and the first buyers will have to deal with potential headaches such as constant truck traffic and construction, lawns that haven’t sprouted, and very few neighbors. Builders will often offer a better deal if you buy early and are willing to put up with such inconveniences.
At the same time, buying the last house for sale in a new subdivision can also save you money. Builders are often eager to wrap up the project, and more willing to cut a deal on the last vacant home.
4. Energy Efficiency
Building codes have mandated higher efficiency standards for new homes over the past several decades. Just meeting these ever-increasing standards lets you know how favorably your newly-constructed house will compare with an older home, and how much you’ll save on energy costs. Additionally, new homes often include “green” systems and have appliances that help reduce your utility bills.
5. Finding the Right Banker
Your banker is an invaluable part of the process when it comes to buying a new home. They are mortgage experts and will inform you about your different mortgage options. They will help you consider the many factors that affect the value of your home and be your advocate throughout the entire process.
Peoples Bank offers you a complete mortgage loan service through its Home Loan Center. We provide FHA, VA, and conventional financing – as well as interim financing for new construction. Our friendly, professional staff has years of mortgage loan experience, let us help you today.