If you’re been planning on building a new home, you already know the major benefits. We’re talking about more customization options; more efficient energy consumption than older houses; higher quality construction materials; reduced maintenance costs; and fewer unexpected issues with the foundation, plumbing, or electrical wiring.

That being said, here are several tips you might not be aware of that can help you ensure the home of your dreams matches what you get in reality.

1. Get A Pre-Approval Before Home Shopping

Before you head out to tour different show homes and find a builder you want to work with, you should meet with your bank and get a mortgage pre-approval. This is an easy process and gives you a concrete idea of what you can afford.

It also shows the builder you’re serious about building a new home.

Having an idea of what you should be approved for also makes it easier for you to narrow your options and look for home styles and models that make sense. 

2. Keep Show Home Features In Perspective

People are often dazzled by the show homes they look at, and really, that’s the idea! But it’s important to keep in mind that most of the features you see in these picture-perfect homes are upgrades, which make up a significant portion of a builder’s profit margin.

Ask the builder which features are upgrades and which aren’t so you know what to expect. You want to know if the finishes you like fit within your budget and if it’s going to be an extra charge.

While it may be tough to get a better deal on the base purchase price of a new home, see if there is room to negotiate the price of your upgrades. Builders often run promotions so look around to see if one is offering a free upgrade that you really want.

3. Have Your Contract Reviewed By Your Lawyer

The sales contract for a new home can be loaded with fine print and legalese. If you sign it without legal counsel, you could get stuck with all sorts of unwanted substitutions and exclusions. These are things that could diminish your house’s future worth, and you won’t be able to renegotiate its terms.

For this reason, it’s worth it to pay a few hundred dollars and have an attorney analyze your contract before you sign it. If you’re displeased with their findings, you can always say no to the deal. 

The contract is a necessary part of the buying process and is there to protect both you and the builder. A good builder won’t have anything to hide and this should be a straightforward process. After a quick review, you’re feeling good about your purchase and ready to proceed with the build.

4. Have Your New Home Inspected

Having a skilled property inspector perform a post-move walk-through before your home warranty expires is essential. Yes, you are buying a brand-new home, but this is one of the biggest purchases you’ll make in your life so you’re allowed to be thorough and ensure everything is as advertised. 

You’ll have the first year to settle into your new home and allow for any potential issues to arise. Any necessary repairs will be covered as stipulated in the first phase of your new home warranty, which handles labour and material defects.

5. Make Notes About Warranty Information

In order to properly fix any problems that may crop up, you must be proactive and realize that there are rigid deadlines for filing claims. To avoid being late, study the package you receive during your pre-sale inspection carefully and write any deadlines down on a calendar. Later on, be sure you file your claim a minimum of 10 days prior to the deadline.

6. Buy During The Right Time

Remember that buying a home during the right season can actually help you save thousands of dollars. Summer is the optimal season to look for a new home since people usually take their vacations then and don’t spend much time looking at houses. And when a builder’s selling season hits a slump, as a buyer you have stronger negotiating power.

Another underrated time to start a new home build is in the winter. It’s slower and you could find yourself taking advantage of a builder’s promotion as they try to kickstart a new year of home sales. In a few short months, the ground will thaw and the building process can begin!

While building a new home has a long list of advantages, there is still an opportunity for issues to pop up along the way if you’re not careful. By following the tips outlined above, you’ll enjoy a better buying experience while also ensuring you and your property will be well-protected in the event anything unforeseen does happen.

Originally published Jul 13, 2017; updated Sep 9, 2022

Author: Jeff S.

Proud father and husband. Loves music, Nine Inch Nails, UFC and inbound marketing.