Quite a few meetings take place between home builders, clients and other vested parties. These gatherings of minds are the ideal time to ask any and all questions that are lingering concerning the project. Here are seven essential queries before signing a contract.
1. Are Lot Costs Included?
New constructions have a base cost, but this doesn’t always include lot costs or associated fees. As the builders about the cost of the land and whether it’s figured into the base price or not.
2. How Long Will the Home Builders Take?
A myriad of issues can arise during the home building process, causing delays that cannot be avoided. However, asking the builder for an estimated time frame should give you some idea of how long it will take to complete the project.
3. What Warranties Come With the House?
Most new homes come with shorter-term warranties for appliances and major systems, and longer-term coverage for structural issues. Be sure to ask what warranties they offer and how long they are valid.
4. Is Landscaping Included?
Often, builders include some basic landscaping to get homeowners started. However, some leave the land unfinished completely, making the buyer responsible for creating the outdoor scenery. Inquire if the products used in landscaping efforts are warrantied.
5. Is There a Cost Escalation Clause?
Cost escalation clauses let home builders pass on any increases in the cost of labor or materials onto the buyer. These cost can add up fast, so as whether the contract includes an escalation clause or not.
6. Are There Homeowner Restrictions?
Restrictions dictated by either a homeowner association or the builder may limit some actions you can on the property. For example, a governing body may require certain exterior color schemes or materials for fences and additions. Approval by the board may be required to make any major exterior changes.
7. Do I Get Incentives for Using Preferred Lenders?
Sometimes home builders will have one or more preferred lending companies, and they’ll pass along some discounts on closing costs for buyers who choose one they prefer to work with. Inquire about these and any other discounts or incentives you might qualify for.