What to Look Out For When Buying a New Construction Home

Nothing beats the joy of owning a brand-new home with energy-efficient appliances and renovated amenities. The National Association of Realtors (NAR) reported up to 36% of buyers prefer newly constructed Sag Harbor homes for sale due to their efficiency, relief from the burden of renovations, and lack of electricity and plumbing problems.

While the advantages are numerous, a brand-new home can also come with a few critical steps you need to understand and consider before purchasing. Here are the key things to look out for before buying a newly constructed home.

The newly constructed home buying process

The process of buying a new home doesn't differ so much from what you'll go through purchasing an existing home. However, there are slight differences worth paying attention to.

First, there are three options when it comes to picking your favorite property among homes for sale in the Hamptons. As a new construction buyer, you have the choice to go for an already completed house or a partially constructed house which allows you to choose desired upgrades and finishes which go into the property.

You can also settle on a fully customizable option in which the contractor builds and designs the house with your specifications from the start. These three options have their advantages and disadvantages, and having a clear picture of what you need will help you focus on the available properties right for you.

Weigh your options

While new homes come with the benefits of customization, energy efficiency, and the latest appliance upgrades, there are also downfalls you need to consider.

First, most new homes are typically miles away from the heart of the city and may not be the best choice if you need to commute daily to and from the town. They’re also usually located in subdivisions which don’t always appeal to everybody.

Most new construction homes also lack the maximum privacy available in existing Sag Harbor real estate. Once you’re informed of all the factors and have decided what you’re comfortable with, go ahead and start your process of securing your favorite new home in Brentwood.

Post-construction or pre-construction?

One of the best things about new construction is you have the option to purchase a property before completion and be part of the development process or go for a home that’s already finished. The decision is all yours.

However, each option has its ups and downs. For instance, buying an already completed home eliminates the worries of what the building will look like upon completion and the potential disappointment if the house doesn’t meet your expectations. When you buy a finished home, you know for sure you’ll get a property that matches your stated interests in the offer letter.

Likewise, customizing a new home can be time-consuming as there are many moving parts to the construction process. However, if you have the time, a pre-construction purchase can work if you prioritize personalized elements of your Sag Harbor real estate.

Research the developer

Conducting a thorough quality assessment of your builder is essential to ascertain your home will meet your expectations and required standards. You may have to research the builder's previous projects and examine their quality.

If possible, talk to previous Sag Harbor real estate customers and get their thoughts on the developer. Independent online review sites are also great places to seek customer opinions if you can't meet any of their previous clients. Numerous complaints versus a few positive reviews may be a red flag and should go into your final decision.

Similarly, confirm the builder you’re considering is on good terms with the State's Construction Contractors Board and has no pending disciplinary actions. Don't be afraid to ask questions and seek clarifications. A contractor hiding nothing from clients will be willing to share as much information with you as necessary.

Explore the area

Take a few strolls around the property at different times of the day to experience the vibrant community of the Hamptons, see who lives in the neighborhood, and other essential factors. If possible, interact with the residents and seek their opinion on living in the area.

The environment in which your prospective new home is has a significant impact on your comfort and health. For instance, you may have to check the presence of any silent hazards like radon and address the issue with your contractor during construction. Your health should be a priority, and be ready to reconsider your decision if any elements of the area might compromise it.

Be confident the neighborhood is a place you'll comfortably spend several years of your life. While selling the property isn't one of your concerns now, think about the possibility of listing it among other Sag Harbor homes for sale later and how the community may affect your resale value.

Hire a real estate agent and mortgage lender

Like you would do with an existing home purchase, you need an expert team by your side while buying a newly constructed home. Many builders have listing agents who are there to hit a quota and not protect your needs. A buyer’s agent, as well as an experienced lender who can walk you through your loan options, are crucial to the success of your home search process.

Interview a handful of Sag Harbor real estate agents and lenders to see whose package and offerings match your preferences. Follow your instincts, and choose the agent you think will best represent your interests at every step of the process.

Perform a site inspection

There have been reports of brand-new homes having plumbing leaks, exposed roof nails, and other issues you can detect and address during an inspection. Although these issues may seem minor, they are worth addressing with your builder before committing to the purchase to avoid expensive headaches down the road.

Know your builder’s warranties

A construction company will only offer comprehensive warranties if they're confident in their craftsmanship and are sure the home will meet your expectations and local requirements. Talk with your Sag Harbor real estate agent so you understand new home warranties and then discuss with the builder about the types of warranty programs they offer.

Put everything in writing

Writing and signing your agreement with a builder is crucial and necessary to the building process. This ensures everyone involved in the process is aware of and has agreed to the promises and conditions made.

Buying a newly constructed home in the Hamptons is one of the most significant financial investments you'll ever make. Ensure the whole process meets your expectations and your dream of enjoying a new home becomes a reality. Work with a qualified Sag Harbor real estate agent at The Schiaffino Team to help you meet your construction goals — contact Lori Schiaffino today to get started! Lori and her team would love to show you properties for sale in Sag Harbor, Amagansett, and the surrounding Hamptons communities.

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All with extensive business experience, the Schiaffino Team brings a wealth of local knowledge and understanding of the Hamptons’ real estate market.