A Buyers Guide to New Home Construction

When buying a new construction home, there are deals to be had and the journey can be exciting and full of promise! 

However, navigating the process requires planning and informed decisions. Here’s a comprehensive guide to help you step confidently into the world of new home construction.

1. Understand the Benefits of New Construction

Purchasing a newly constructed home offers several advantages:

  • Customization Options: Many builders allow you to personalize finishes, layouts, and features.

  • Energy Efficiency: New homes often include modern appliances, insulation, and windows, reducing utility costs.

  • Warranties: Builders typically provide warranties for structural components and systems, offering peace of mind.

  • Low Maintenance: New materials and construction techniques mean fewer repairs in the early years.

2. Research Builders

Warning: Not all builders are created equal. Take the time to:

  • Reviews: While reviews are a great tool, in general, people use them as an opportunity to vent. As your realtor, I will canvas the neighborhood to ask original purchasers what their experience was with the builder. 

  • Visit Model Homes: Inspect the quality of work in completed projects.

  • Verify Credentials: Ensure the builder is licensed and adheres to local building codes.

3. Know Your Budget

Building a home can come with hidden costs. Be prepared by:

  • Factoring in Upgrades: Builder-provided upgrades, like premium countertops or hardwood floors, often come at an additional cost.

  • Considering Closing Costs: These can include legal fees, taxes, and adjustments.

  • Budgeting for Landscaping and Extras: New builds often lack features like fences, patios, or finished basements.

4. Understand the Timeline

New construction doesn’t happen overnight. The timeline can vary depending on:

  • The Builder’s Schedule: High demand or labor shortages may delay construction.

  • Weather Conditions: Rain, snow, or extreme temperatures can affect timelines.

  • Permit Approvals: Municipal permits can sometimes take longer than expected.

Plan for potential delays and have a contingency plan if you’re selling your current home or arranging a move.

5. Work with a REALTOR®

Having an experienced real estate agent on your side is invaluable. A REALTOR® can:

  • Negotiate Terms: Builders rarely lower base prices but may offer incentives or upgrades.

  • Explain Contracts: Builder contracts differ from resale agreements and often favor the builder.

  • Provide Market Insights: They can help you understand if the price aligns with local market trends.

6. Review the Warranty

New construction homes typically come with warranties, which can include:

  • Workmanship and Materials: Covers items like plumbing, electrical, and finishes.

  • Structural Components: Protects against defects in the foundation, roof, or framing.

  • Manufacturer Warranties: Appliances and systems often come with their own coverage.

Review the warranty terms carefully to understand what is covered and for how long.

7. Who and/or What is Tarion?

If you’re buying a new construction home in Ontario, you’ll encounter Tarion, a not-for-profit consumer protection organization. Tarion administers the Ontario New Home Warranties Plan Act, which ensures builders adhere to high standards and provides warranty coverage for buyers.

Tarion’s role includes:

  • Warranty Coverage: Impartial third party that warranties for defects in materials, workmanship, and structural integrity.

  • Builder Licensing: Ensuring builders are qualified and meet provincial standards.

  • Dispute Resolution: Offering mediation services for warranty-related conflicts.

Understanding Tarion is key to knowing your rights and protections as a new homebuyer.

8. Don’t Skip the Inspection

Even brand-new homes can have issues. Hire a licensed home inspector to:

  • Mistakes to Avoid: It's great to catch paint and caulking touchups, but focus on actual defects and physical damage (dents, scratches, gouges, etc). Physical damage not noted during the "PDI"/Pre-Delivery Inspection could be labelled "Non-Warranty" later in the process.  

  • Spot Defects: Identify problems before you take possession.

  • Inspect Milestones: Consider inspections at various stages, like foundation pouring and drywall installation. 

9. Plan for Move-In Day

While your new home will be move-in ready, some final touches might still be needed:

  • Utilities: Arrange to have electricity, water, and internet set up in advance.

  • Appliances: Confirm whether items like refrigerators and washers are included or need to be purchased.

  • Furnishings: Measure spaces to ensure furniture fits and matches the design.

Conclusion

By understanding the process, researching thoroughly, and budgeting wisely, you’ll be well on your way to enjoying a home built just for you.

Looking for expert guidance in navigating new home construction? Reach out today to get started on your journey!