Purchasing a new home can bring a new set of issues compared to buying an pre-owned home. Since you know who built the home you’ll have direct access to all the home’s information that may have been lost though the years. There are always unknowns though: What will the completed neighborhood look like? What kind of vibe will the neighborhood have?

Buying new does bring significant advantages though. Read On.

Customization – No home will be 100% perfect. You may want to change the wallpaper, add shelving, or replace kitchen fixtures. With existing homes alterations are negotiated with the seller. Perhaps they’re uncomfortable with the requests or whatnot but whatever the reason, negotiations can take a while. But with a new home, builders are already on site, labor’s readily available, and materials are nearby. Builders are flexible with requests to there’s no harm in asking.

Financing – Builders often work directly with banks and that can result in alternate financing options. It’s still a good idea to get pre-qualified with the bank of your choice. Builders often have an option of using applying for builder financing buy it’s important to weigh your options so speak to a mortgage specialist first.

Buyers Market - The Market speaks. Home builders are competing not only with each other and occupied homes but also with a long list of bank owned homes and short sales. Buyers want the best deal money can buy and builders know that. In return, they’re pricing competitively, offering incentives, or add-ons. Home buyers have a lot of leverage.

Warranty – Nearly all new homes include a warranty meaning the builder will come and fix issues that may arise. Pre-owned occasionally include a warranty but they’re very limited. Read the warranty paperwork thoroughly to know exactly what if covers and who backs the warranty.

Arbitration – Sometimes builders include arbitration clauses in their contracts in which buyers forego their rights to file lawsuits. Instead, buyers have to use a dispute resolution process designed by the builder. Not all builders include the arbitration clauses so be sure to read the paperwork.

Future Amenities – It doesn’t happen much in the Portland area but on occasion builders will create entire neighborhoods with public spaces to invigorate the neighborhood (pool, golf course, parks, etc.) If it’s not built yet then there’s a chance it won’t be. Research the builder and check their track record.

In Short: Research and read the fine print. It’s not always bad but it is best to be prepared when buying a home. New or previously occupied.

Cheers,

Aaron

About the Author | Aaron Majors

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Born and raised in Alaska, Aaron came to Portland after serving in the U.S. Marine Corps. Aaron enjoys the outdoors, volunteering, teaching, learning, and being active in the community. Always loving architecture and buildings, it seemed natural that Aaron's passion became Real Estate. He is a member of the Portland Metropolitan Association of Realtors, National Association of Realtors and is always continuing his Real Estate education. He sells Real Estate in the Portland metro area and specializes in selling Homes and has an extensive background in foreclosures, Home Auctions, Short Sales, Bank Owned homes, and investments.