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The New Construction Process

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Do you think a new build might be the right move for you? Buying from a builder is a fun and exciting way to get your next home. Depending on where you start in the process, you can pick your flooring, paint colors, countertops, cabinets and maybe even pick floorplan options (such as choosing a loft over a 4th bedroom). You also get the satisfying feeling of being the very first person or family to live in that home, making memories all your own. 

While you can walk into any new home sales office and buy a home without a Realtor®, it’s important to remember that the sales agent that helps you will NOT represent you. They work for the builder exclusively, so they will be looking to get the best deal for the builder- not you. You are entitled to your own representation when you buy a new home, just like when you buy resale. And since most builders will pay a buyer agent commission, IF the agent accompanies you on your first visit, there’s no reason not to cover yourself and hire a Realtor®! 

how it works

THE building PROCESS

01
Prequalify with a lender

I would normally tell you to obtain a full pre-approval, which is a more in-depth process. However, many builders offer amazing incentives for using their preferred lender. So in this case, a simple prequalification to find out how much purchasing power you have should be sufficient.

02
Find your neighborhood

There are new home communities all over the Las Vegas valley, from many different builders. If you don't have a preferred builder, you will have countless options to choose from. I can send you neighborhoods that meet your criteria, or you can search through them with the link provided here

03
the fun part

Now that you've narrowed down your options, it's time to have some fun! This is when we get to wander through the model homes for your favorite communities, looking for your perfect home match. But remember...you MUST take your agent with you on your first visit, or the builder will not agree to pay their commission!

04
Negotiation and Contract

Now that you're found your home, it's time to sit down with the sales agent and negotiate terms. Depending on the market and the availability at a particular community, there may be a chance for an interest rate reduction, closing cost assistance, free home upgrades or appliances. It's always worth a try! This is also when you will need to complete your loan application and provide documentation to your lender for your assets and employment.

05
Option Selection

Once you are under contract (unless it is on a completed home), you will need to select your options. The builder will schedule a deadline for your selections and may even send you to their design studio to see their design offerings. This is another fun part of the process, though it can also be overwhelming if decisions are not your strong suit. Remember, I am here for you every step of the way and would love to attend with you, as another set of eyes and opinions on your choices!

06
Watch your home take shape!

The actual build process generally takes anywhere from 6 months to a year, depending on the builder and also on availability of materials and labor. If you are in town, plan to drive by monthly or even weekly to check out the process and take photos. And if you're not in town, I will plan to do this for you, since there's nothing quite like watching your home take shape.

07
Walkthrough/ Inspection

Once your home is complete, the builder will schedule a Walkthrough. This is super exciting, since it's your first chance to the finished home. However, it's not all fun and games. It's also an important time to look for any missed options, defects in workmanship or other issues. While a home inspection is not required on new home sales, I always recommend getting one if it's in the budget. Just because it's a brand new home, that doesn't mean everything was done correctly. Construction workers and superintendants are human, just like the rest of us. And sometimes, humans make mistakes. A good home inspector can spot the issues that we might not see, so we can make sure they're fixed BEFORE you take ownership and move into the home. 

08
Closing

Congratulations on reaching the final step in your new-home-build process! You will need to sign your loan/closing documents and all closing funds need to be wired to escrow. Once everything is received (and any final repairs from the walkthrough have been completed), escrow will release your sale to the county for recording. As soon as we have recording confirmation, the builder will hand over your keys and you can start moving in!

5 Ways To Negotiate Better When Renting in Happyville, USA

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Learn More About Buying New Construction

Want to learn more about buying from a builder in the Las Vegas and Henderson Area? Check out these articles and videos.

Have Questions About New Construction?

Check out my FAQs for buying from a Builder in the Las Vegas Valley.

Yes! As long as your agent comes with you on your very first visit to a new home community, they can represent you on the sale. Most builders will pay your agent a commission, so you don’t have to. If you’re worried you might have to pay extra to use an agent, check with them first to find out if that particular builder will pay them and if the agent will charge any additional fee.

If you need to move in a hurry, or at least in less than 6-12 months, there are still opportunities in new construction! Tell me your requirements for area, home size and price, and I’ll see what I can find for you. New home communities often have homes at various stages of construction that will be available sooner. Sometimes, you can even get a fully completed home that’s available for move-in within 30 days. Even better, these homes often present opportunities for extra negotiation on interest rate, closing cost or price!

Aside from the obvious benefit of buying a brand new home and being the first person to ever live there, there are also other benefits to new construction. A newly built home has to meet all the newest energy conservation requirements, which equates to lower utility bills for you! You will also have home warranty coverage from the builder, which will typically cover 1 year for workmanship and materials, 2 years for mechanical systems and 10 years for structural components of the home. The warranty coverage can vary, depending on the builder, so be sure to verify details in your contract if this is a concern for you.

Unless you are looking to spend $1 million or more on a custom home, you are most likely going to have to live in an HOA if you want new construction. While an HOA does put restrictions on the way you enjoy your home, it is very effective for preserving neighborhood homes values. So, try to think of it as protection for your investment, rather than policing of your property. If your concern is simply the extra cost for the HOA fees, you will be happy to hear that fees vary greatly, depending on the neighborhood. To avoid a higher fee, you can look for a neighborhood with no entry gate, clubhouse or pool. These are all amenities that will increase your HOA payment, so you can avoid them entirely if you don’t feel they’re worth the extra expense.

Probably not as much as you think. If you are using a traditional conventional loan, you can put down as little as 3% of the purchase price. An FHA loan requires 3.5% and if you are eligible for a VA loan, you can qualify for zero downpayment. Of course, there are typically exceptions to every rule. If you are buying an investment property or a second home, the downpayment will be higher. It may also be higher if you have any credit concerns. In addition to your downpayment, you will also have closing costs due at close of escrow. Closing costs can range from approximately 2% to 6% of your loan amount. These fees can be negotiated between buyer and seller, so don’t panic if you don’t think you have enough. Depending on your situation and where you want to buy, there are also multiple programs in Nevada that offer Downpayment Assistance. 

What My Buyer Clients Have to Say

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