“The Money Pit” is a movie showcasing a new home purchase gone terribly wrong. Navigating the obstacle course of buying and building a new house is always challenging.
What’s ahead and why it matters: We delve into what you need to know before you start shopping for your new home so you don’t make common mistakes. Avoid turning your dream home into a money pit by knowing what to do before you buy.
1. Don’t go it alone
You can’t wear five hats – agent, lawyer, inspector, architect, builder. You need a team.
Hire a real estate agent or work with new home sales rep who knows new construction.
Use a lawyer to review the contract.
Never skip the home inspection.
If building a custom home, shop around for both builders and architects.
2. Shop your loan
The builder’s lender isn’t your only option. While many offer incentives to use their lender, take a look at what works best for you.
Compare rates and terms.
Ask about incentives, but do the math.
Get lender recs from your agent and friends.
3. Vet the builder and the community
Even new builders leave a paper trail.
Read reviews and licensing info.
Ask residents in other communities.
Tour the neighborhood and talk to neighbors.
4. Size and location matter more than upgrades
Upgrades can wait. Lot size, location, and layout can’t.
Prioritize square footage and school districts.
Don’t trade a bedroom for granite counters.
Choose a location with long-term value.
5. No house is perfect
Every home will have flaws – plan for them.
Keep your expectations realistic.
Add a contract clause for post-move-in repairs.
Do a thorough final walk-through.
6. Get it in writing
If it’s not in the contract, it doesn’t count.
Nail down all promises and timelines.
Confirm how unfinished items will be completed.
Review the final version with your lawyer.
Why it’s important: Building or buying a new home can go smoothly – if you ask the right questions, protect your interests, and plan ahead.
Online research at NewHomeSource is a great place to start your home buying journey! Check us out on Instagram and Facebook!
Rachel Kinbar
For the last 16 years, Rachel Kinbar has been a writer of articles, blog posts, white papers, essays, infographics, web copy, sales copy, scripts, poetry, lyrics, and more. She has keen research skills that she applies to a wide variety of topics, and she especially loves topics related to design, history, and sustainable living.