My 1st Home New Build Experience and Tips

[Marquez Griffin]

In March of 2018 my girlfriend and I had just received word that we got beat by another bid on a home that we really liked. After 10 offers and no luck in the hot Denver real estate market we knew there was something else we needed to do. I did some personal research and saw that there was a new build construction site really close to where I am working. I called up my agent, we viewed the model homes and by April we had given the builders the earnest money and we were in the design center picking out what we wanted for our brand new home. Here are some tips when it comes to new builds: 

1.) Don't go crazy with the upgrades! A majority of new builds have base level upgrades at no additional cost. A few examples would be: carpet, tile, staircase handrails, exterior materials etc. When I went to the design center, I was told that on average most people spend over 20,000 on upgrades! With that said some things are worth it to do ahead of time such as; install extra supports in the ceilings to hang ceiling fans, have upgraded carpet padding, add laminate to bathrooms, add stucco etc. I would suggest getting the bare minimum upgrades and installing your own upgrades later down the road.

2.) Pick a decent sized lot. When you are looking at building a home you get to choose from a few lots that they have available and each one is priced differently. The price may vary depending on if it's a corner lot, on its size and if it has good views. When is comes to landscaping some new builds will pay for the front yard to be landscaped but leave it to the buyer to pay for the backyard. In my case, the builder did not pay for any landscaping to be finished (except a vinyl fence that runs along a main road in the neighborhood). Just be aware of how much landscaping costs in your area and to have money set aside to install and maintain your yard.

3.) The other major factor with new builds is time. A new build may take anywhere between 6-14 months, if not longer, depending on the size, quality and quantity of homes the builder is working on at the time. In my case it took about 10 months before we were able to move into our home. That actually benefited me greatly because it gave me more time to save while waiting for the home to be built.

4.) Another great thing about new builds is everything has a warranty. Everything that came with my home; Appliances, drywall, paint, electrical, plumbing is under warranty for 1 year, my furnace and a/c unit is under warranty for 10 years and the foundation is under warranty for 8 years. Compare that to buying an older home and the furnace goes out right after you move in, the plumbing is ancient and the inspector somehow failed to notice the large stress cracks in the foundation.

It has only been a few months that I have been living in my home and everything has been working out great so far! I will provide an updated version of this in the future and let you all know how things have worked out. My home in the past year has already appreciated well over 40k in equity and I plan on using my home equity to BRRRR in the near future. Please let me know if you have any other questions about New Builds I would be glad to assist with what I can!