Purchasing a newly constructed home is an exciting time. You are allowed to meet with the builder and choose many items that ordinarily not be available to you.
Below are 5 items to consider when buying new construction:
The internet has done a tremendous job to give us insight on businesses we have never worked with. As a buyer, read reviews and drive by homes the builder has completed. If the builder has good reviews and is building many homes, you know you are in good hands.
This is extremely important. Often times, buyers will see a model home that has a perfectly manicured lawn and all of the upgrades available to a home that are not included in their contract. You need to make certain all aspects of the home you want completed have been negotiated and addressed. A prime example of this includes landscaping and hardscape. There are times where the builder will simply put up the home and the buyer is responsible for sodding and planting trees or bushes.
After you have negotiated all items, make certain it is written into the contract. If the item is not written in the contract it does not exist. Do not rely on someone’s word to complete a promised item.
When a newly constructed home is assessed, the property tax proration will be given on undeveloped land. This means your tax bill will have a very significant increase once the home is built. Ask your real estate attorney for an estimate of what the taxes could be. Your real estate attorney will not be able to give you an exact figure, but an approximation will help you understand what to budget.
People make mistakes, it is a fact of life. While your general contractor will work hard to ensure there are no defects in the home you will want a professional to double check all of the work. A professional home inspector can assist you in showing deficiencies that may not have been known, or help you make a punch list for items that need repair that can be addressed through the builder warranty.
Niko Law LLC is an Illinois law firm. As the firm practices law in the State of Illinois, only, this website and/or e-newsletter focuses upon that jurisdiction, only. Please keep in mind Niko Law LLC does not guarantee results and that law can vary dramatically from state to state, county to county, and it is not reasonable to assume that law in other jurisdictions will be the same as, or even similar to, Illinois law.
This e-newsletter should not be construed as legal advice, nor used in lieu of a lawyer.
For questions regarding your specific situation, please contact Niko Law LLC at 708-966-9388.
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