New Home Purchase Questions

Buying a home can be a complicated process. There are many areas to consider when purchasing a new home. Asking the right questions can help you decide where to purchase and how to build your new home. Some are obvious and some are more complicated.

Questions you should ask yourself before searching for a new home:

• How far am I willing to commute to work?
• Would I be willing to drive further to save money?
• What monthly payment would I be comfortable with?
• Will I plan to have more kids or need room for an expanding family?
• What do I like / dislike about my current living situation

Questions to ask homebuilder sales agent:

• Are there any current builder incentives with the community?
• What features set your home apart from other builders?
• What other communities have you built in the past? (then visit those communities)
• How long do you project this site to be under construction?
• How long will it take to build my home?
• What does the typical person spend on upgrades? Can I see a list of your upgrades?
• What are you standard features?
• How much money is needed for down money?
• What are typical closing costs?
• Is there a Home Owner’s Association (HOA) and if so how much are the HOA fees?
• I have a home to sell. Do you offer a contingent agreement of sale? (Not all builders offer this. Contingencies allow you time to sell your home and provide no risk for losing your down money).
• Lastly, ask to look at all documents including HOA documents, site plans, agreement of sale, and any other pertinent documents before signing the agreement of sale.

Where to look for a new home

Whether you are relocating or just looking for a new home in your current town. Here are some general rules when searching for that right community.

I have broken down the new construction housing market into 5 main areas:

City Center
Immediate Suburbs
Outer Suburbs
Exurbia
Rural Living

As a general rule of thumb for new construction: Your city centers and immediate suburbs are going to be the highest priced areas. The farther out you go from a city center, prices definitely drop. Consider looking for new home construction a little further out you’re your normally would. Often times for an additional commute time of 15 to 20 mins longer, you can save any where in the range of $100,000!

For example, the builder I work for T.H. Propertes once had an ad in Lansdale, PA for a Pennsburg, PA community that read, “Driving 20 mins could save you $100,000 or more.” Rural exurbia is sometime closer thank you think and could save you lots of money. Additionally, these homes have the greatest potential for higher resales. Most of these areas are “up and coming areas” and will increase in value as more people move to the area. Lastly, you will have less traffic congestion, a more scenic surrounding, and a bigger home for less money! Areas to consider in the Philadelphia market are northern Montgomery, Northern Bucks County, Eastern Camden County, and Western / North Western Chester County.

Once you find that area you want to live in, visit every sales center possible even if you think it is out of your price range. Home Builders are offering ridiculous incentives right now and the home of your dreams might less expensive than you think!