Should I Buy a New Home Before It's Completed ?

By Dian Hymer

Imagine this: You hunt for months for the prefect home to buy, but nothing meets your fancy. You're exhausted from touring tired-looking listings, mentally calculating the expense and hassle of redoing tasteless interiors.

About to give up, you discover this home For Sale ad headline: New home under construction; prime opportunity for buyers to choose colors and finishes. Sounds like a dream come true.

A few months later, you're in contract to buy that new home, wondering if you made the right move. You thought you'd be able to pick the paint colors--inside and out. You had a choice all right. For the interior, the choices were two: Navajo White or Bone.

You fancied green in one room, blue in the next. The builders said that would be fine if you paid them enough non-refundable money up-front to repaint the interior if you backed out of the deal. Under these circumstances, Navajo White was fine.

As for the exterior, you were told to pick what you liked. But, when you did, the builders told you they didn't like it and asked you to pick another color. Finally, after several rejects, you gave in and agreed to let the builders use their choice just to be done with it.

Buyers are frequently disappointed when they buy a home from a builder before it's completed because they feel entitled to have whatever they want. The builders usually want to have a happy buyer, but not at the risk of compromising their building project.

Pre-selling a home appeals to builders because it cuts down profit-eating carrying costs. But, most builders are concerned about how marketable their home will be if the buyers back out of the deal.

First Time Tip: To avoid disappointment, and to maintain a good working relationship with your builder, make sure that you have a clear understanding about what choices you will be allowed to make. The builder should also provide you with a detailed list of the finishing specifications, including the quality of the finishes (marble, tile or linoleum floor in the bathrooms, Kohler or American Standard plumbing fixtures). When you're buying a home before it's done, you need to know what you'll be getting for the price. This should be in writing.

Some builders will provide a budget for certain items like light fixtures, plumbing fixtures, carpet, tile, etc. The buyers choose within that budget, usually with a condition that the builders approve the buyer's selections. Check with a decorator to make sure that the budget is sufficient.

There should be a provision for upgrades in case the buyers want to pay for more expensive finishes. The builder may want you to pay for upgrades at the time they are installed in the house. This protects the builder in case you don't close.

Buyers are usually shocked by how much time it takes to make the numerous decisions that are required in a building project. It's also difficult for most people to visualize how a home will look finished. This is why it's a good idea to hire an interior decorator who has experience working with builders to help you make the right selections. A good decorator will be able to suggest tiles that work well with paint colors and carpet so that the finished project has a harmonious, inviting decor.

The Closing: Some buyers are put off when builders demand decisions be made on a time schedule. This may be necessary to keep the project running on schedule so that you can move in on time.

Copyright 2002-2006 Dian Hymer. Distributed by Inman News Features