Earlier we did a post on building your own home. Now we can take it a step farther and go on to discuss tips on options and upgrades.

  • Determine which options and upgrades you want. Bear in mind that for many builders, the profit margin is highest in upgrades. Some builders can sell a home for almost bare construction cost because they make the bulk of their profit in the upgrades.
  • Find out whether your lender will lend on all the options/upgrades you have chosen. If your lender will not finance 100% of your selections, you will be required to pay for it in cash.
  • Ask about cancellations and whether you will be held liable for items the builder cannot return to a vendor.
  • Some contracts give the builder the right to choose your upgrades if you do not submit your request within a certain period of time.
  • To save money, consider which upgrades you could purchase and install yourself after the escrow closes. However, realize that some upgrades such as CAT-V, DSS or security wiring inside the walls are easier to do before construction.
  • Check Out the Builder’s Reputation.
  • If a buyer has a bad experience with a builder, word can spread rapidly throughout a community. But make sure you check the reputation of the builder because you could discover this bad experience is not an isolated incident. Verify public records for lawsuits.
  • Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building identical or larger homes in the area or is construction lagging and homes shrinking in size?
  • Hire a Home Inspector!

Related posts:

  1. Building a Brand New House
  2. Buying New Homes
  3. Investments: New Construction or Pre-Construction?
  4. New Home Construction Investment
  5. Want To Save Money Buying A Home – Think Modular