Are you in the market for buying a house for yourself or as an investment property? You have to consider various options and do extensive research before investing in a house.
Buying off the plan involves purchasing a property that has not yet been built or is currently under construction. It's a unique process with its own set of considerations.
Keep reading for important things to know before buying new construction homes. If you are looking for a home in the Virginia Beach, Norfolk, Chesapeake, and Portsmouth areas, we have you covered.
Understanding Off-the-Plan Purchases
Whether you're looking for an investment property or buying your future home, it's important to understand what new construction homes mean.
Buying off the plan means committing to a property before its completion. You are essentially purchasing based on plans rather than inspecting a finished property.
Investigate the reputation of the developer. This includes:
- The quality of construction
- Adherence to timelines
- Overall customer satisfaction
Carefully review the purchase contract. Understand the terms and conditions, including what happens if there are delays or changes to the original plans. Consulting with a legal professional is advisable.
Be aware of the deposit structure. Typically, a series of payments are made during the construction phase, leading to the final payment upon completion.
Understand the expected completion date and whether there are any provisions for potential delays. Delays are common in construction, and having realistic expectations is crucial.
Know the extent of customization you can apply to the property. Some developers offer a range of choices for finishes, fixtures, and even floor plans. Clarify what is included in the base price and what constitutes an upgrade.
If possible, tour model homes. This will give you a better sense of the builder's work and the potential layout of your future home.
Investigate the neighborhood and future development plans in the area. This ensures you know the area. Consider factors like:
- Amenities
- Schools
- Transportation
- Future property value appreciation
Be Prepared
Understand the warranty offered by the builder. A good warranty provides coverage for structural issues and various components of the home. Also, inquire about after-sales support and services. In many jurisdictions, there is a statutory warranty period for new constructions.
Be aware of the broader property market conditions. Changes in the real estate market can influence the property's value upon completion. This can potentially impact the return on your investment.
Have a contingency plan in case circumstances change. This could include potential delays, changes in personal circumstances, or shifts in the market. Be prepared for various scenarios.
Seek advice from legal and financial professionals who specialize in property transactions. They can provide guidance on the contract, financing, and potential risks associated with off-the-plan purchases.
Inspect the quality of materials and workmanship. Consider hiring a professional inspector to ensure that the construction meets the necessary standards.
The Appeal of New Construction Homes
Choosing to buy off-plan new construction homes can be a prudent decision. It offers buyers customization at a competitive price. While risks like potential delays exist, thorough research can limit concerns.
At PMI Virginia, we have been involved in real estate since 1993. We not only understand the market but we're also prepared for any and all possibilities. Contact us today to get started planning your dream home.
