What to Know When Buying a New Construction Home

Posted by EdmontonRealEstate.ca Team on Monday, September 10th, 2018 at 8:00am.

How to Buy a New Construction Home in CanadaNew construction properties are appealing to Canadian home buyers because it gives them an opportunity to enjoy a completely fresh start with a customized home. New construction homes are in high demand, but it's imperative that buyers work with an experienced real estate agent who can help them navigate through the process - especially new home buyers.

Here's what home buyers need to know about buy a new construction home in Canada:

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Research All Builders Being Considered

Not all home builders are created equal, and home buyers who are interested in building a new construction home should do extensive research on each builder they are considering. The Canada Home Builders' Association recommends searching for local home builders online and learning more about their company, their experience and their specialties through their website. Choosing a builder who is a member of the CHBA may be beneficial, because its members are required to adhere to a code of ethics and they also participate in regular educational programs and training opportunities. Prior to finalizing the decision, home buyers should meet with the builder in person and also reach out to any references provided.

Hire a Buyer's Agent to Negotiate the Contract with the Builder

Bonnie Doon home buyers who visit model homes at new construction communities often will meet with a representative of a building company. Often, they may be told that they do not need an agent to represent them in the transaction. While a buyer's agent is not necessary to buy new construction homes, it is very beneficial for home buyers to secure the help of a qualified real estate agent. Without an agent, the home buyer will have no one to represent their needs or interests in the transaction - the builders representative will look after the builders interests, not the buyers. A buyer's agent will advocate for them as they finalizing the purchase agreement with the builder.

Discuss Options and Upgrades Available

Home buyers who purchase new construction property may be faced with many decisions about the exterior and interior design of the home - if they buy it prior to completion. This can be enjoyable, yet exhausting. Prior to finalizing the agreement, buyers should discuss the design options at-length with the builder. It's important that they know what comes standard in the home, and what is available as an upgrade for an additional fee. This can have a significant impact on the final price of the home, and buyers need to have an understanding of what they will be paying in the infancy of the project. A big advantage of new construction is the home can be built for energy efficiency - with solar panels and modern technology for a smart home.

Consider the Community and the Amenities Within It

Finding the right home with the perfect floor plan is only one aspect of purchasing a new construction home. Each new construction development will vary based on who its target market is and what types of amenities it will offer. Buyers should work with their agent to discover more about the amenities that will be available within a given community, such as a clubhouse, a swimming pool or a recreational facility. Buyers who are investing in a new home are also investing in a new neighborhood, and they should know more about where they are going to live.

Once a buyer has decided to purchase a new construction home, there are so many choices to consider and decisions to be made. Those who are interested in purchasing a new construction home in Canada should work with an experienced real estate agent who has developed a professional network that includes the top builders in the region.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

By Justin Havre

 

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