Attention Houston Home Buyers Here Are 6 Critical Questions to Ask When Buying New Construction

If you’re in the market for a brand-new home, you’ve got a ton of options. Sales of new homes surged to an eight-year high in 2015, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, and single-family production is estimated to reach 840,000 units in 2016, an 18 percent increase over 2015, according to the National Association of Home Builders (NAHB).

Unfortunately for home buyers, new residential construction is coming at a steeper price: Last year the average price of a new home jumped to $351,000, up $100,000 from 2009, reports the NAHB.

Nonetheless, there are still ways you can save when buying a new home. It’s like shopping for a new car: You need the right strategy to nab the best deal.

Ask prospective builders these six questions in order to find the right home at the right price.

“What financial incentives do you offer for using your preferred lender and title company?” If a new home is listed for $370,000 and it sells for $360,000, the next buyer in the development is going to want to pay that lower amount. However, many offer handsome incentives to buyers who use their preferred lender and title company.

“Which are the standard finishes?” When you tour a development’s model home, keep in mind that you’re previewing a high-end version of the standard home. Therefore, you need to find out from the builder which options are standard, which options are upgrades, and what each upgrade costs.

“What are your long-term plans for the community?” Depending on the size of the land, the builder might be planning several subdivisions. This could impact your decision to buy. There’s also the risk that the builder loses funding and another company takes over the development.

“What are the homeowners association rules and regulations?” Each homeowners association (HOA) has its own Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. Get these from the builder and review them carefully.

“What warranties do you provide?” Most builders offer a one-year workmanship warranty and a 10-year structural warranty. Make sure the warranties you receive explicitly state what is and isn’t covered, and what the limitations are for damages.

“Can you connect me with some of your past clients?” Ask past clients questions such as, “How responsive was the developer when you expressed concerns?” and “Would you use the builder again?”