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BUYING NEWCONSTRUCTIONA C O M P R E H E N S I V E G U I D E

CONTENTST A B L E O FThe New Construction Process3Is New Construction For You?4The Pros & Cons5-6Decide on Your Homesite7Considerations with Your Builder8Questions for Your Builder9-10Pre-Approval or Proof of Funds11Customizations - Custom Build12About Your Realtor1About the Guide2Customizations - Planned Build 13Preparing to Close14

Deah is a high-touch realtor known for her extensive marketknowledge and unmatched devotion to clients. Her successis based almost exclusively on positive referrals. She earnsthe respect of her clients by working tirelessly on their behalfand by always offering them candid advice.A B O U T Y O U R R E A L T O RDeah HendrikszREALTOR® | CRS, GRI, SRES, ABRThank you for trusting me to guide you through this exciting time: considering if newconstruction is right for you and your family.My goal is to ensure that you are confident andinformed every step of the way. Have more questions? I'm always available tohelp! Shoot me a text or give me a call anytime.Home RealtyAddress14245 W Grand Ave #1Surprise, AZ 85374BrokerageCell: 425-407-2800EmailDeah@DHRealtor.comWebsiteDHRealtor.comFacebook@DeahHendrikszRealtorInstagram@DeahHendrikszRealtor

Buying or building a newhome is an excitingundertaking, with manyquestions to consider. This guide was compiled togive you a framework toconsider as you decidewhether to purchase a newlybuilt home or to embark onthe journey of building with a contractor.Let's get started!About this GuideA B O U T T H I S G U I D E

QUESTIONS TO CONSIDERPROS AND CONS LISTCHOOSE HOMESITECHOOSE BUILDERQUESTIONS TO ASK BUILDERSPRE-APPROVAL/ PROOF OF FUNDSEXECUTE CONTRACT WITH BUILDERSELECT FINISHESWALK THROUGHSOPTIONAL INSPECTIONPUNCH LISTCLOSING DAY01Is New Construction for You?Your Site & BuilderFunding & Getting StartedPrepare to Close020304The Construction Process

I S N E W C O N S T R U C T I O N F O R Y O U ?If you need to move into something new rather quickly, newconstruction may not be the best option for you.How soon would you like to move into a new home?If your answer is no, new construction may be a good fit.With everything brand new, all of your customizationschosen, and a home warranty you won't need to do anyfixing up for the foreseeable future.Do you enjoy working on home projects and DIY?If your answer is yes, new construction may be a greatoption. You would be able to build something that fits yourneeds and desires. Plus, if you can find land in your desiredlocation, your dream home awaits!Are you looking for something specific?

L E T ' S C O N S I D E R T H E P R O S & C O N SThe ProsYou have the option to include thelatest hi-tech features Such as a security system, audio systems,automatic lighting, and smart faucets,appliances, and thermostats.Everything functions correctly! Your money can go towards furnishingsand decorating instead of repairs andreplacements. Your home maintenancecosts will be lower for the first severalyears.Big-ticket items like the roof,appliances & HVAC are all underwarranty. In fact, the builder’s warrantymay cover additional items such aswindows, doors, and trim, electrical andplumbing systems, and workmanship ontile and drywall installation.You may get to customize the features.Depending on what stage the home is inwhen you buy, you may get to choose thefinishes, fixtures, and appliances. Ofcourse, if you are doing a fully custombuild, you get to choose everything.Enjoy the latest standards on energyefficiency. A home built today will bemuch more energy-efficient than onebuilt ten, twenty, or thirty years ago.

L E T ' S C O N S I D E R T H E P R O S & C O N SThe ConsThe price is not usually negotiable. The cost is the cost when it comes to new construction. Unless you downgradefeatures, or your builder is offering a lower pre-construction price, you usuallywon't be able to negotiate the sales price.You may not get the options & finishesyou hoped for. Unless you are doing atotally custom build, your builder may haveselected finishes, fixtures, features, andappliances you can choose from. Mostbuilders will allow you to pick from outsidetheir options, but upgrades are expensive.You will have immature landscapingfor some time if you are in a newdevelopment. Unless you purchased avacant lot in an established community,you will have to wait some time for newtrees to mature and provide shade toyour home and yard.You will have to abide by the builder’sdeed restrictions, and possibly an HOA.New developments usually have certainrestrictions homeowners must adhere to,and most newer neighborhoods also havehomeowner’s associations. This is not a badthing, but you should know what the rulesare before you buy.

D E C I D E O N Y O U R H O M E S I T EHomes “built on spec” means the builder has purchased asingle lot and built a home on it not knowing who willpurchase the home. Typically, the builder will list the homewith a real estate agent to market and sell. Since thehome is usually finished, or almost finished, the buyer doesnot have the opportunity to make changes to the home. Spec HomesTract homes are homes built in a development where allthe homes are built around the same time, or in phases,by the same builder. The builder determines floor plansand uses similar features in each model. Often, buyerspurchase a tract home prior to completion and theymay be able to make changes within the builder’sbudget or for an upgrade fee. Tract HomesWhen the buyer purchases land and contracts a builderto build a home of their choosing, they are building acustom home. The buyer chooses their floor plan, or hasan architect draw one, and chooses all of the features– sometimes with assistance of the builder or an interiordesigner.Custom Homes

C O N S I D E R A T I O N S W I T H Y O U R B U I L D E RIf you are looking to build in a planneddevelopment, find out if there is adesignated builder or if the developerallows you to hire your own. If you are bringing in your own builder,it’s important to choose a reputableone. Consider these points:Confirm there are no complaintsregistered against the builderAsk for references from otherhomeownersTour a model or recently completedhome and bring someone who canjudge the quality of the workmanshipIdentify your contact person who youwill communicate with through everystep of the build so you know whenyour choices must be made and wheneach phase will be completedConsiderationswith your Builder

Q U E S T I O N S T O A S K Y O U R B U I L D E RAre you required to use their preferred lender?Many builders work with a preferred lender that offers attractivediscounts on closing costs. It’s important to know if the lender isworking as a referral or if the mortgage company is owned bythe builder. If you are not required to use their lender, shop around to see who can give you the best financing.Can you review a copy of the builder's sales contract?Builders use contracts that are similar to regular sales contractsbut include additional terms specific to the building process, such as the timing of contractor payment, and the finish optionsyou have to choose from. Your agent can help you interpret theterms of the builder’s contract before you sign.What is the timeline for completion?This will differ based on the type of home (Production, Spec,Tract or Custom). Production homes can be completed in three to four months, whereas custom homes usually take a minimum of six months. Regardless, the builder should be able to give you a timeline outlining each phase of construction. Interested in upgrading features such as cabinetry, plumbing, orlighting fixtures? You could save money by purchasing your ownfixtures or appliances. Make sure your builder is open to youmaking choices outside of their selections. Usually, they areflexible as long as your selections are available and can beinstalled without major changes or updates to the schedule.Can you choose features that are not in their package?

Q U E S T I O N S T O A S K Y O U R B U I L D E RWhat is included in the landscaping package?Many people assume their finished home will look like the modelor the graphics in the brochure, only to find out that the builder’slandscaping package is the bare minimum, or even non-existent.You may choose to upgrade it or plan to add your ownlandscaping.Can the builder charge for unexpected cost increases?Make sure to review the builder’s contract carefully and note if there is an escalation clause that would allow the builder to pass cost increases onto you in the event that materials or labor costs increase during construction. What warranties are provided?Understand what is covered under the builder’s warranty and forhow long (usually between 6 months and 2 years). All the majorstructural items and mechanical systems are usually covered,Appliances, damage from weather, shrinkage or expansion ofthe home or foundation, and issues resulting from thehomeowner’s failure to provide maintenance are not covered.What are the deed restrictions, HOA and amenities?Developers usually file a subdivision’s restrictive covenants whenapplying for approval to build the development. Any personsbuying a property in the development are bound to abide bythese restrictions. Is there an HOA? What are the fees and whatamenities do they cover? Can you do a final walk-through before closing?Usually, there will be a “punch list” of items the builder needs tocomplete by the end of construction. This could include cleaning,touch-up paint, repairing drywall, trim work, re-keying locks. Walkthe home before closing to make certain every item is addressedbefore you sign the closing documents.

O B T A I N P R E - A P P R O V A L O R P R O O F O F F U N D SBuilders or developments often workwith particular mortgage companiesand will offer discounts on closingcosts for using their “preferred” lender. Whether you use the builder’s lender orsomeone else, you will need to get pre-approved for financing. If you are notfinancing, obtain proof of funds fromyour financial institution. Secure Financing or Show Proof of FundsQuestions forLendersWhat interest rate can you offer?Is it fixed or adjustable?When can you lock my rate?What fees can I expect from you?What type of loan is right for me?Do I qualify for any down paymentassistance programs?RecommendedLendersJeannie Russo480-570-1634Barrett Financialemail: Jeannie@barrettfinancial.comTanner Kneipp623-340-7845Umortgageemail: TKneipp@Umortgage.comKathy Jenson602-568-2966Monument Mortgage Group, LLC email: kjensen@azmonument.com

C U S T O M I Z A T I O N S - I N A C U S T O M B U I L DThroughout your build, there will be plenty ofdecisions to make. Being prepared with yourchoices at each stage will help keep the buildon schedule. Most builders will assign you a project managerwho will inform you of the build's stage andwhat decisions are coming due.If your build is custom, work with an interiordesigner or begin researching finishes, fixtures,colors, hardware appliances and lead times.Customization DecisionsCustomizations in a Custom HomeFloor plan & overall home design Exterior finish and color Roof type and color Window styles and colors Door and window hardware Landscaping plan Interior wall textures, and colors Baseboards and crown molding Kitchen, bathroom & laundry roomCabinetry design and finishes Backsplash design and material Countertops Shower and bath styles Sinks & shower plumbing fixtures Toilets Flooring (rooms, hallways, garage)Appliances Garage door Closet design Shelving material and design Fireplace materials and design Porch or patio design and materials Driveway design and layout Pool & outdoor amenities

C U S T O M I Z A T I O N S - I N A P L A N N E D D E V E L O P M E N TIn a planned development, you usually haveoption levels to choose from, the scope ofwhich depends upon the price point of thehome or development. You may be able toup or downgrade any of these items. Discuss with your builder how changes totheir options packages will affect your sales price. Various options are usually offered for theitems listed below. Check with your builderfor an exhaustive list.Customization DecisionsCustomizations in a Planned Development HomeExterior colorsInterior colorsFlooring choicesCabinetryDoor hardwareCountertopsLight fixturesPlumbing fixturesTileDoorsAppliancesLandscapingNOTE: CHECK WITH YOUR BUILDER FOR AN EXHAUSTIVE LIST

P R E P A R E T O C L O S ECheck on every phase of construction to ensure thatthe build follows the plan. Even the best builders havemiscommunications, mix-ups on orders, or problemswith installations. Plan on visiting the home severaltimes per week once it gets dried-in.WalkthroughsAlthough your home is brand-new, you still mightconsider having a home inspection done. Sometimesan inspector will catch something that slipped past thecontractor and code enforcement.Optional InspectionClosing day on new construction involves a “punchlist” of items the builder is responsible for completing.This may include cleaning, painting, landscaping, orchanging locks. Go through the house with the builder before closing to add items to the punch list.Closing Day!

I hope this guide has beenhelpful. If you have anyquestions, please don’thesitate to reach out!Thank you425.407.2800Deah@DHRealtor.comDHRealtor.comDeah HendrikszR E A L T O R ®