Imagine being the very first person to live in your new home

Any buyer searching for a home today, in any market or price range, will likely come across new construction homes for sale. Whether built by large national builders or smaller local developers, these homes can be part of a subdivision or standalone properties. For financing solutions, Big Valley Mortgage, a trusted mortgage lender in Roseville, CA, is here to help you every step of the way.

But is a new-construction home the right path for you? Here are five factors you should keep in mind.

New homes may not be listed in your local MLS

Unlike a regular seller who lists their home with a local real estate agent, homebuilders often have their own sales employees working for them on site. They do this to have more control and to cut costs.

What does this mean for buyers? This could mean that the homebuilder isn’t a member of the local MLS, so their homes may not appear in your agent’s MLS search. Builders often advertise online, in newspapers, or with billboards. If you’re interested in newly built homes, work closely with your agent to ensure you’ve explored all available options. For financing, connect with Big Valley Mortgage, the best mortgage lender in Roseville, CA, to secure the right loan for your new home.

New homes are often sold before they’re built

Builders typically secure financing and establish a construction and sales process, aiming to sell as many homes as possible before they’re even built. To attract buyers, they often create model homes, showcasing floor plans, fixtures, and finishes while construction is underway. However, in some states, builders must complete certain approval processes before they can begin signing contracts. If you’re exploring new construction and need financing options, Big Valley Mortgage offers flexible solutions, including first-time home buyer loans, to help you get started.

For the most part, you can get a sense of what your new home would look and feel like and where it will be located in the community. Ready to move forward? You’ll likely have to put down a deposit, from a few thousand dollars to 10 percent of the purchase price.

Be aware that even if there are 100 homes in the community, they won’t all be available at once. Homebuilders tend to release the homes in phases. If the first five homes sell quickly at the asking price and the market continues to do well, the builder can raise the prices in the second or third phase.

Also, the sales cycle for a new community can take years. The last phase could be priced 10 percent or more than the first, simply because the real estate market has appreciated.

The first buyers may get the best discounts

A home builder, especially early in the sales process, wants to get a few homes under contract quickly. If the builder can announce they have 10 homes under contract in a few months, the project can seem more desirable to future buyers.

Also, builders like to go back to their mortgage lenders with positive news about the project and their investment. To do this, they need early buyers to sign contracts.

For buyers, entering the sales process early might offer a chance to negotiate the price down. However, this potential reward comes with risk. As an early buyer, you’re committing to the project, and if sales don’t progress or you choose not to proceed before the home is built, you could lose your down payment. For example, during the last housing downturn, some buyers found themselves stuck under contract on stalled projects. To navigate these challenges confidently, explore home loans in Roseville with Big Valley Mortgage, your trusted partner in financing.

Request a free quote on either a VA or Conventional Loan.

Builders don’t have a personal attachment to the home

A typical seller has lived in their home for many years, and raised their family or built memories there. So when it’s time to sell, the seller may experience all kinds of issues, questions, and uncertainties, which can come out in the negotiation and purchase process.

The seller may unconsciously price the home too high because they’re not ready to emotionally detach from it. They may want to know more about you, or what your plans are for the property. If given a choice between two buyers, the seller may pick one over the other for non-financial reasons.

For home builders, it’s all about the numbers. Their focus is on spreadsheets rather than sentiment, ensuring buyers are qualified and able to secure a loan. Prices are typically set based on inventory, though there might be some room for negotiation. For expert guidance and financing options, connect with Big Valley Mortgage, a trusted mortgage lender in Roseville, CA, to help you navigate the process.

Discounts may come in the form of upgrades rather than price reductions

If the project you’re interested in is nearing the end of its sales cycle and many homes are already sold, the builder might be more open to negotiating on upgrades like hardwood floors or premium appliances. Unlike price reductions, these upgrades don’t show up in public records, making them a discreet yet valuable benefit—potentially saving you thousands.

For many first time buyers, new construction can be an excellent choice, offering modern features and customization options. Explore financing options with Big Valley Mortgage, your trusted partner for first time home buyer loans and personalized solutions.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*