Buying a new construction home comes with other costs that you want to be aware of. Speaking with a mortgage specialist is a great place to start and see how much of a budget you got and where do you want to stay within so you can live comfortably while you own your new home. Below are some of the other major costs that you want to keep in mind as well.
Legal Fees and Disbursements
With any real estate transactions, you will need to hire a lawyer. Many of the new home builders today will cover your legal fees if you decide to use their recommended lawyer, just make sure the disbursements are covered as well, these similar to admin fees that the lawyers charges separately from their service.
When you’re meeting with your lawyer, there will be adjustments such as utilities and property taxes that will be adjusted. It’s a good idea to consult your lawyer to see how much money you should prepare for these closing costs. Your sales representative may know the property taxes for the area you are purchasing depending on how new the community is.
Talk with your insurance broker to get a quote for your new home. Typically, they will offer a monthly payment to lower the stress level. Please note that your lawyer may request a copy of your insurance near the end of your possession date.
Most new homes will not come with landscaping. However, part of the architectural control requires homeowners to complete their landscaping within a specific time frame after possession. This is a refundable deposit set up as an incentive to help keep the value of your community. Be sure to find out how long you have to complete your landscaping and what is the minimum requirement. If there is anything that is preventing you from completing it on time such as weather condition, you should be able to contact your builder and make some kind of special arrangement. Just be sure to contact them before your deadline.
Deck & Fencing
If you enjoy the outdoors, you may want to build a deck and fencing. For the deck, you will have to find out more about our building pocket and see how much room you have left for your deck. If you plan to build a much bigger deck, you can choose a step-down deck which doesn’t require you to build within the building pocket.
Fencing is usually shared with your neighbors, you may want to talk to them before starting anything. If your new home is next to a show home, you may get a quote and request the builder to share the cost with you. Don’t forget to follow any fencing guidelines in the architectural guidelines.
Some of you may want a theater room and guest bedrooms in the basement. For those building on a walk-out lot, you may have other ideas such as a wet bar or games room. Basements are optional with a new build home and the builder will need to know in the beginning stage of your planning. The costs will vary depending what exactly you want. Walkout basements will tend to be higher because of the possibility of retaining walls.