So, you're looking to buy a home and you're considering new construction? Before you cross the threshold into any new construction property, consider this - once you enter that property and begin a discussion with the agent there, you are giving up a lot of control over your own transaction. It's essentially the builder's goal to control the transaction and if you're going up against their agent (who may not even be licensed as a Realtor), you will probably not be getting the best deal or even the best information. The builder's agents are skilled in negotiating the best terms and conditions for their client. In today's crazy market, every buyer should be represented by their own agent. This is especially important when you're dealing with a new home builder. So, don't go into that new construction alone! The process will be similar to purchasing a resale. You and your agent will come up with the fair market value of the property based on similar sales. You will write up an offer which will include the typical contingencies such financing, appraisal and you will also want to do a home inspection.
A word about home inspections:
Don't think that just because a home is being build brand new that there aren't going to be some items that haven't been installed properly, have been omitted or are just plain incorrect. A home inspection performed by a licensed professional that you choose will not only make you feel comfortable about how the home operates, but may uncover defects that you will want to address with the builder. You'll want to do two inspections, one before the drywall is installed and one after the home is completed. We helped a client purchase a town home with a price of over $1,200,000 and during the pre-drywall inspection, our home inspector uncovered some defects in the way some of the plumbing was installed and if the drywall were installed there could have been a potential risk of water leaking behind the drywall. That could have lead to serious problems in the future.