Is New Construction the Key to Your New Denver Home?

There are some great reasons to consider buying new construction. For starters, everything is brand new which means there there should be very few surprise repair costs for the first few years.  You may get to select some finishes and have a house built just the way you want it. There may also be financing incentives to get a mortgage at a lower interest rate than possible otherwise if you work with their preferred lender. There are just a few things to keep in mind if you do decide to go with a builder.

Understand all the costs

There can be a lot of additional costs to get the house you really want. The price that the builder markets is usually their lowest base price home and it can sound like a great deal at first glance, but by the time you make finish selections from the design center, add in lot premiums, landscaping, and other items that are not included such as window treatments or certain appliances, the final cost may be well above the price range you had in mind.

Higher property taxes

If you are buying a home in a new community, it is likely part of a "metro-district", an entity formed to build and finance all the infrastructure of the new community such as roads, water, and parks, which results in a higher property tax. The average metro-district property taxes are almost twice as much as a property not in a metro- district.

Be Aware of Timeframe

To get the model you want on the lot you prefer, with the finishes you select, you may have to be patient. While there may be some homes that the builder has already started that can be move-in ready in a shorter time frame, it can range from 6-12 months from start to finish. It is also not uncommon for builders to run behind schedule, so having a flexible timeline is key.

Builder's terms

The sales person at the model home is working on behalf of the builder, not buyers, so it's important to have your agent with you at your first visit to the builder if you want someone working in your corner. Many builders will not allow agents to represent buyers if the buyer attends a model home without the agent present on the first visit.

Builders use their own contracts that are not as favorable to buyers as compared with the normal state sales contract, so it's important to know exactly what terms you are agreeing to. There are usually very few ways to back out of the contract without losing your deposit.