Biggest Mistakes When Building or Purchasing Your Dream Home

Purchasing a new home can be wonderful! You are not only are able to choose where the foundation is laid, but you are able to add a solarium here, a wet bar there, and before you know it you have a three-car garage and a story-book dream home to call your very own.

With so many different amenities to choose from it is often quite easy to forget some extremely crucial elements during the ever so exciting and crucial "new home" planning experience which could seriously cost both money and time.

Here are the top 7 blunders:

  1. Do not believe everything that you read in advertisements:  You must always check and verify what you read in advertisements especially what you find in the newspaper and the community's standard features list. Besides typographical errors that do happen, I have been witness to blatant false advertisement. I do try and be an optimist, however, if it appears to be too good to be true, then it probably is.
  2. Failure to use a buyer agent:  When searching for a new home, make sure to use a buyer agent whose specialty is just that - new homes. There is an enormous difference in the step work of purchasing a new home. It begins with the pros and cons of the building materials and the community location, to how the agent’s fee is paid (currently the fee for the buyer agent comes out of the builder's marketing budget).
  3. Failure to examine the lot closely:  Terrain, the shape of the lot, and as we have all heard – “location, location, location”, all of these elements effect your surroundings and impact your sense of safety as well as comfort and peace of mind.
  4. Not seeking out your own finance company and using the builder endorsed company for convenience sake:  Many builders offer incentives on their products by utilizing financing through their in-house lender. Be aware that after some investigating, a lot of these incentives and in-house lenders can be double the cost of an outside lender. It is good to check with the in-house lender, a mortgage broker, and a loan officer for a direct lender before committing to anyone.
  5. Overlooking the inspection clause in builder contracts:  A small, overlooked detail in the new home industry is that some builders (this does include national builders as well) have written into their contracts that they DO NOT ALLOW home inspections by a third party, independent inspector until AFTER the CLOSE. This is madness, and you could be the owner of your NIGHTMARE HOME. More than likely, unless you are a home inspector of many years experience, you will not notice many, if any of the red flags or structural problems before it is too late. In fact, your best bet is to hire an inspector to first check the foundation, second, the pre-drywall, and last, at the day before cleanup.
  6. Picking and choosing too many upgrades and amenities:  This is by far the most common mistake amongst new home owners by and large who are not looking at the future when they will be reselling their home. It is better to stick to traditional, high quality essentials that will stand the test of time and tradition. Ten years from now, no one will pay for high priced luxuries in a lower priced home.
  7. Picking communities first, then necessities:  Buying a home is not like buying a new pair of shoes or a bottle of wine or even picking out a restaurant for a Friday night out. You must first look at lifestyle requirements i.e. schools, transportation, and convenience to jobs and shopping. Upon finding these top priorities, locate the communities in these areas that interest you and find a happy medium. It is a better way to have the best of both worlds.

Buying your dream home can be an exciting milestone experience. It will be one that you remember and cherish for the rest of your life, and then do again when that time to sell comes around too. By remembering these simple rules, it should help reduce the headache and help you embark on an adventure that will be truly fabulous. Happy hunting!