What to Know About Buying a New Home Build in Cambridge
Jun. 21, 21 | Buying
Although still a relatively small town compared to Waterloo, Cambridge is seeing an increase in new construction homes. These properties are gaining popularity and selling fast. For many types of buyers in many stages of their lives, a new home build is a great option.
Here’s a breakdown of what you need to know about buying a new home build in Cambridge.
All Builders are Not Created Equal
With so many options popping up, it’s easy to get overwhelmed about which new home build you are most interested in. However, the first step you should take when looking at any new construction project is to research the builder and/or developer.
Make sure the builder is reputable with a proven track record of successful projects. Check out their other projects in the area to see how things held up, and look online for reviews and testimonials. If possible, you could even walk the subdivision and talk to other homeowners who recently moved in. You should feel confident that the builder has a rock-solid reputation in the area.
The Price You See vs. The Price You Pay
Most new builds are advertised with a “starting” price. This is the base model price that does not include any specific upgrades or customization.
One of the biggest benefits of going with a new build is that you do have the option to customize and upgrade the items you wish. For example, maybe you prefer a premium lot or a marble countertop. Or maybe you want to upgrade the fixtures or invest in a higher-end AC unit. These are all really common requests, but the upgrades and customizations start to add up in cost. It’s also important to note if HST is applicable or if it’s included in the advertised listing price.
The price you end up paying for the home is usually not the price advertised. It’s advisable to have a good REALTOR® in your corner with experience in new home construction to help keep these factors in mind.
Less Negotiation Wiggle Room
When buying a home that’s a few years old, you might have some wiggle room in the negotiations. Perhaps the seller wants a quick sale or they are more willing to negotiate conditions into the contract. This type of transaction happens on a more “person-to-person” level.
Buying a new home build is a little different. This is more like buying a house from a store, not an individual seller. Builders are less likely to negotiate on the price of a new home because it might have an impact on other homes in the development and could result in many buyers looking to negotiate, driving down the value and price for the entire development.
When buying a new home build, it’s better to discuss negotiations for upgrades rather than the list price.
However, many builders offer financial incentives for purchasing a new home build. So you might still get some sort of deal even with reduced negotiating power.
Another major benefit of buying a new home build is the builder’s warranty. Homes older than 7 years do not come with a warranty, but since you are the first person living in a new construction home, you will have a Tarion Warranty. This might just be enough to give you peace of mind and provide some maintenance savings in your first year of owning the home.
Is a New Home Build in Cambridge Right For You?
Whether you are looking to upgrade your home, downsize, or you’re buying your first home, a new build is a great choice for a variety of people in different stages of their lives. But a new home build is still a huge investment that requires attention and care. An experienced real estate professional, like myself can help you navigate the new construction world and get you into a brand-new home that suits your life and your style.
Want to learn more about buying a new home build in Cambridge? Contact me today for a consultation.