New Construction Homes: What to Know Before Buying Off the Plan

New Construction Homes: What to Know Before Buying Off the Plan

In July 2022, it was reported that the average cost of new construction homes in the Dallas/Fort Worth area went over $500,000 for the first time. That's obviously a great deal of money. So, before going off and splurging tons of money on a new build, you need to do a bit of research first.

What types of things do you need to research? We're going to get into that below. Without further ado, here's what to know before buying new construction homes in Dallas.

Model Homes Aren't Always Indicative of What You're Buying

At some point while in the process of buying a home, you're likely to view a model home. Now, you might think that this model home is perfectly representative of what your home will look like. However, in many cases, this isn't true.

See, model homes tend to be built with frills and accessories. They're not indicative of the base price of the home. In other words, if you want something equal to that model home, you're going to have to pay more than what was originally advertised.

This isn't to say that the base level of the home would be bad. It's just not necessarily going to be on par with what you're seeing in the model.

There Could Be Some Room for Negotiation

When you buy a new construction home, you're likely assuming that you'll have to pay the listed price. In reality, however, there could be some wiggle room. In short, you might be able to negotiate with the home builder as a means of getting a lower price overall.

Just ask if they're willing to lower the price. If they bite, they bite. If they don't, they don't. What have you got to lose?

You Should Still Have Your Home Inspected Before Moving In

A new construction home is brand new, so there's no reason to have it inspected right? Not true. You still need to have a new construction home inspected prior to moving into it, as there could very well be construction defects present.

If you catch these defects prior to moving in, they'll be fixed free of charge. If you wait, you'll likely be on the hook for them financially.

HOAs Are Common

One last thing to know about buying new construction homes is that, these days, they're typically included in HOAs or Homeowners Associations. In other words, they come with rules that you'll have to abide by. Plus, you'll likely have to pay HOA fees on a monthly basis.

Make sure you know the specifics of your new home's HOA. If you find it too restrictive, consider getting a new build elsewhere.

Looking for New Construction Homes in Dallas?

While new construction homes might seem like the obvious choice on the surface, in truth, they have some downsides. This is why, before opting for a new build, you should do serious research on your local real estate market. Only then will you perfect your home buying process.

Looking for homes in the Dallas/Fort Worth area? You might be able to find a winner here with PMI Premier. Check out our selection of homes now!