New home construction are on the rise in Central Indiana. Seems everywhere you look right now, there are bulldozers, concrete and bucket trucks building a new neighborhood. With limited existing homes for sale, building a new home is becoming more and more popular. Here is a list of the Top 5 facts you should know about building a new home.

New home construction builders have a base price for a home. You’ve seen the signs advertising a new neighborhood that says: “Starting in the $190’s”. They build model homes to show you some of the floor plans and what’s available.

What isn’t always clear is that the base price of the home doesn’t usually include everything you see in the model homes. They have “upgrades” vs the “standard features” included in the base price. We’ve seen it over and over – a client gets excited about the model home. The base price for the floor plan is say $200,000. However, to get the model exactly as shown, the price is more like $225,000.

Buyer beware. Laminate countertops, carpet and vinyl flooring, standard cabinets and vanities are part of the base price home. When you change those options, the price goes up.

Make sure you have built into your budget for upgrades. Whether it be laminate flooring, upgraded lighting fixtures, a premium corner lot or one with a water view… lots of upgrades are available but they will cost you more.

Some clients (especially unrepresented ones) will sit with the builder and sign the contract for a home. Then, when it comes time to choose their features, they are shocked that the price they agreed to is for a striped down version of the model home.

Make sure you know exactly what it included in the price you are quoted from the builder and have some extra funds in reserve (or available through your mortgage) for upgrades!

Never forget, a builder’s agent represents the builder or is the “Seller” in this case. Their loyalty is to the builder – not you, as the buyer. You need someone to watch our for your best interests.

Most new home builders will also pay a Buyer’s Agent commission so being represented is at no cost to you. BOOM!

An agent can research the different neighborhoods, accompany you on tours, provide a comparable market analysis, research the builder, help explain pricing, read contracts and negotiate. They will always have your best interests at heart.

It’s best to have your agent accompany you the very first time you visit a model home. However, at the very least, tell you agent which neighborhoods or builders you might be interested in so they can call ahead and let the builder’s agent know you are coming!

Builders will often have preferred lenders. They may even offer to cover some of the closing costs if you use them. That’s fine, however, realize that you can use whatever lender you prefer.

It’s against the law to force a client to use a certain lender. The choice is your alone!

If the builder’s lender offers you the best terms, then go for it! However, it’s best to review all your options!

We all know that the Spring and Summer Markets are usually the busiest for existing home sales. but did you know that Fall and Winter are a great time to purchase a new build?

Builders are setting up their calendars for breaking ground in the spring and want to be busy. Often times they are willing to negotiate more in the fall and winter when there are less buyers in the market.

Don’t forget to check about model homes, too. New Home Builders will sometimes sell these at a discount with all the upgrades already in there to make room for new models to be built. They are a lot of times on larger lots too!

Your best bet is to take an agent with you when you are thinking of new home construction or buying a model. The builders agent is representing the builder; you need someone to watch out for your best interests too!

Don’t be swayed by all the upgrades in the model home. They typically aren’t included and can blow your budget if you aren’t careful!