There's nothing like buying something brand new.  Buying a new houses is no different. You get to pick out the countertops, paint, and appliances, and have the floor plan  designed just the way you want it.  New homes come with more space and better appliances, and are energy-efficient. New houses are also often priced  comparably to resales with some exceptions. New home developers incentivise you to buy with offering thousands in seller concessions such as paying for closing cost, pre-paids and buydowns. Coupled with some of the most aggressive marketing sales agents in the real estate industry, it is no small wonder that a large majority of prospective buyers that are "just looking" end up signing a contract before they leave.

The downside to buying a brand new home may be shoddy construction and lengthy construction delays or the developer goes bankrupt before completing the home.

Here are some suggestions on how to avoid problems.

Research your developer before choosing a house. The most important consideration in buying a new house is who will be building your dream home.  A responsible builder will guard his repution,  constructs homes that live up to the promises, and responds to home buyer's concerns should they arise. Unfortunately the industry is frot with a few builders that take your money and run. They build a house that starts deteriorating on day one then become capser the ghost. An important TIP, if you recently bought a new home and find yourself in this unfortunate state is document, document document. This means that you keep a running log of very issue you've reported and take pictures or video. 
Reserching a builder:

·         Contact a Real estate Buyer's agent  who is familiar with developers in the area. Many years ago, home buyers had no representation when considering a home purchase. But after much litigation and many years we have the advent of Buyer's Agents who deal directly with the builder on your behalf.

·         Talk to the HOA (Home Owners Association) in the target community.

·         Contact El Paso County planning or building department staff who deal with local developers.

·         Contact TREC and other state or local licensing or consumer protection agency that oversees contractors.

·         Contact the local Better Business Bureau. Ask whether any complaints have been filed against the developer.  

 

Follow your Realtor's advise and hire an experienced home inspector to inspect the house at different phases during construction to discover the quality of the builder's workmanship. Be aware that many builders in the area are averse to such inspections. Although many will permit an inspectionafter completion and before closing. Additionally, the home buyer, if possible, should visit the home regularly during construction. TIP: while visiting the site be sure to steer clear of the workers and unsafe areas (i.e. exposed wiring, construction material laying around) as these are hazards you want to avoid. What you may want to do is station yourself accross the street and video tape certain phases of the project.

The builder will require a final walk-through either a day before closing or on closing day. Your Buyer's Agent will ask the builder to allow your inspector or contractor to give the home a check at least during some of the most important phase of contraction including but not limited to the foundation poure,  framing  and when the home is completed. Unfortuantely, most builders will not allow the first two as it may cause a delay in the schedule but will comply with the final inspection once the home is finished.

The home inspector will examine various systems  including the walls, roof, plumbing, electrical, and insulation systems. Once the inspection is complete, which generally takes 3-4 hours, the inspector will report his findings in a narrative report with pictures indicating any and all defective areas. At this point your Buyer's Agent will submit a written request to the builder to repair or replace certain items.

Always buy a New Home Warranty. You shouldn't have a problem with the systems in your new home if you buy from a reputable developer. But not all developers are reputable, and you may not be sure about yours.

Your best bet is to buy a house with a new house warranty from an independent insurance company as opposed to relying on a warranty from your own builder. Typically, new-home warranties cover workmanship and materials for one year; plumbing, electrical, heating, and air conditioning systems for two years; and major structural defects for ten years.

You can also buy a new home warranty on your own, but you'll have to shop carefully to find one that covers major structural defects.

www.hadd.com (Homeowners Against Deficient Dwellings) and www.hobb.org (Homeowners for Better Building).

www.move.com.

For information on hiring an inspector, see Get a House Inspections Before Buying.