I am serious about buying a new construction home (subdivision); what should I know? You may have seen the advertising, a giant billboard with a sketch of a new construction home. It looks appealing; the thoughts of owning and living in a new house can be emotionally satisfying. You have been thinking about it; maybe it is time to take the leap and start taking action. Is it for you? Is it the right decision to buy a new construction home?
You'll be surprised to know many people spend more time investigating a car or computer purchase than their house. I believe you are not one of those. You are here to learn, research, and understand the process of buying a home. Buying a house is a multistep process, and you should treat it that way. Here I will discuss the sequential steps you should consider following to guide you through your purchase to minimize the risk and stress.
When do I need to talk to my mortgage broker? Regardless of the property type you may end up buying, you must have a clear idea of how much you can afford. Every decision, every choice you make, will depend on your budget. For example, the right choice of location, size, property lot, cosmetic options can only be made with a clear budget in mind. Remember, our goal is to reduce the stress and minimize the risk in your journey to purchase your house. Your best bet is to get in touch with your mortgage broker or bank, preferably a specialized broker in new house loans. They will inform you what paperwork they need from you, and usually, within few days, you'll have all the information.
Is the new construction home for me? I understand this article is regarding purchasing a new construction house; however, it would not be fair not to discuss all the options and compare. You may also consider a pre-owned home or a new custom home. Let's look at the benefits and drawbacks of each property.
The benefits of the new construction are (1) personal satisfaction of owning a new house (2) much lower maintenance for a few years, thanks to the new building, (3) the wonderful home warranty you get from the builders (4) personalizing the house to your likings.
The drawbacks are (1) the cost of the new construction is usually $20 higher than a pre-owned house, (2) being farther from the city center, and the possibility of long-distance commute since almost all the new constructions are located in the outskirts. (3) the cookie-cutter housing style and new landscape with smaller trees may not appeal to some people. (4) We do get to choose our neighbours, but you can walk around and find out more about the neighbours in an older neighbourhood. In the new construction, you would not know about the neighbours until the very end.
With the custom home build, you get the best of both worlds; you choose your property, neighbourhood, house style, cosmetics and more. However, those things come with a price tag, to state the obvious. To be fair, custom home building is not only expensive, but it can also be time-consuming and stressful.
Buying A New Construction Home subdivision In Toronto; Do I Need My Own Real Estate Agent? PART 2
The above Real Estate article was provided by David Khosravi, a leader in his field in Willowdale, North York, Toronto. Reach out to David via email: firstname.lastname@example.org or by phone: 416.990.2424