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Buying A New Construction Home | 7 TIPS | Asheville Realtor


Twelve years ago, before I was a realtor and
knew anything about real estate, let alone about new construction, my husband and I bought
our first home and it was new construction. Only except our house didn’t exactly look
like that one, it looked more like this one. Actually, this is the house that we bought. This is our house. This house doesn’t really look like your brand
new dream home, huh? So what could have possibly gone wrong? Elena Kovrigin: Hi my name is Elena Kovrigin,
this is my name, this is my job title, this is a subscribe button that you might want
to click and this is my hashtag, you know what to do. In this video I’m going to give you seven
different tips- Speaker 2: Seven, seven …
When it comes to buying new construction so that you don’t make same mistakes we did 12
years ago. Elena Kovrigin: One of the first questions
to ask is who’s going to represent who? So 12 years ago when we’re start looking for
houses, this lovely lady offered me to show this new construction home that was just a
few weeks from being completed. Later on she got real upset with me because
our own realtor, who by then we had established relationship with, presented an offer on our
behalf. Turns out this lovely lady was a realtor and
she was representing the builder. Mind you, back then I was not realtor, I had
no clue what’s going on, so I did not know. By the way I have a link about the realtor
works for and it’s down there in the description. Elena Kovrigin: Anyways, unless you looking
at those new construction homes with your own realtor, chances are the person who’s
showing you those houses represents a builder or a developer and he or she is not working
for you, at least not yet. So my advice, keep your mouth shut. You can’t tell me to shut up. I think I just did and ut oh here it comes
again, shut up. Elena Kovrigin: Do not disclose your personal
information such as financing and your motivation. Do not tell them how much you qualified for,
because that’s gonna blow your negotiation power and you don’t want to do that. Unlike regular real estate, new construction
can be at various stages of construction, and that brings me to tip number two. You need to ask a question, what stage of
construction this house is in? Believe it or not, new construction homes
can be advertised starting when the ground is just broken all the way to the end product
where the house is move-in ready and it’s 100 percent complete. There’s a couple reasons why you might want
to ask about stage of construction and the projected completion date. Reason number one is that you’re going to
have to put an offer on this house and you’re going to need to put a closing date. The closing date is tentative. It might be a little sooner it might be a
little later, but you’re still going to have to come up with a date. And another reason is that you’re probably
going to have to have mortgage, unless you are one of those 30, 35 percent of people
who do not need a mortgage and are going to pay cash for this transaction, you’re going
to have to communicate with your lender. So that your mortgage lender can process your
loan application and put you in your brand new house on time. So 12 years ago when we were closing our house,
we ended up with this. A house with zero landscaping, bathroom mirror
was missing, front and back door were not painted and a bunch of other small, cosmetic
imperfections. And that’s because neither us nor our realtor
knew to ask this next important question, which brings me to item number three, selections
and upgrades. Elena Kovrigin: Looking at a house that is
still under construction, there might be time for you to make some of the selections and
potentially upgrades. By selections, I mean things like choosing
your exterior and interior color, picking the color of your carpet, tile, hardwood floors,
cabinets, countertops and things like that. By upgrades, I mean things like upgrading
from carpet to hardwood floors, upgrading countertops to granite, to different levels
of granite, putting some stonework around fireplace and things like that. Make sure you understand that upgrades will
cost you more money. Side note, let’s say you made all your selections
and you’re happy with them, and then a month from then you are not real sure about that
hot pink exterior color of your house so you want to change it. Some builders might charge you change order
fee. It can range from just a couple hundred dollars
up to thousands of dollars. So you want to make sure you ask a question
whether the builder charges that change of order fee or not. If you ask this question, it will save you
time, frustration and money. Tip number four, ask if there will be more
houses constructed around or near your house. New construction is usually associated with
lots of construction noise, traffic and dirt and dust. You might feel like you’re going to live in
a construction zone for quite a while if there are new houses will be constructed right next
to you. A few years after we became homeowners, I
became a realtor and not just a realtor who specializes in residential real estate, but
one of my first big jobs was to represent a builder and a development at a new home
community. That was quite a learning experience. It opened up my eyes to a lot of things. It brought a lot of memories about our own
experience, and a lot of frustration along with it. But I lived through that, I learned and I’m
here to tell you the truth. Elena Kovrigin: So this brings me to item
number five, builder’s warranty. In the state of North Carolina, every new
construction should come with one year builder’s warranty. The only way to have this builder’s warranty
enforced is to have it in writing. When you and your realtor put an offer on
a new construction home, you can either use regular offer to purchase with a new construction
addendum, or use a special new construction offer to purchase form. That way all the boxes about builder’s warranty
will be checked, builder’s warranty will not be implied but in fact be there to protect
you. Item number six, home inspections. Yes, even on new construction when you’re
buying a brand new house, you want it to be brand new and perfect and those home inspectors
can find every little imperfection and every little thing that the builder might have missed. And you have all the rights to turn around
and bring this item spec to the builder or the developer and ask for the repairs. Elena Kovrigin: Also, I also recommend my
clients to do a radon inspection. Remember, radon is found in all parts of North
Carolina. It’s not the matter of if you have it, it’s
a matter of how much you have it. By the way I have a video about radon as well,
the link will be down in the description. And last but not least, tip number seven,
walk throughs. When I represent my clients in the purchase
of a new construction home, I do two walk throughs. The first walk through is happening two or
three days before the closing date. I give them a roll of blue painter’s tape
and let them go and look at the house and find every little imperfection. I’m talking about scuff marks on the wall. I’m talking about nail holes that were not
filled. You have all the rights to ask and expect
to have the house brand new. And this first walk through ensures that you
catch all those little imperfections and give builder a couple of days to address those
issues. And then the second walk through happens either
the night before the closing or the morning of the closing date. And you just go back and make sure the builder
addressed all those little things that you marked on the first walk through, everything
looks good to you, everything looks as it should be, and you’re ready to close. I hope you found this information useful. Happy new construction hunting. Make sure you find a realtor who had previous
experiences with new construction and if you can’t find anybody, I’m right here. I will see you next time.

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