Thinking about buying a new home? Where do you start? Who do you talk to? When should I plan to move? In this episode, we explore some of the top questions you need to ask when buying a new home so you have the right answers to make the best decision.
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Hi everyone, and welcome to another edition of Homebuyer School. Today I'm joined by Jesicca McNabb, Area Manager with Brookfield Residential.
Today the question we're going to answer is,
What questions should I be asking when buying a new construction home?
A lot of times, when people are coming in, we're gonna ask them when do they want to be moved into their new home.
With new construction, [00:00:30] there's typically a build timeline.
Karl Yeh: Okay.
Let's say we've got a bunch of lots available, and they are going to be about six to eight months to build the home.
Most people think, "Well I'll have my mortgage pre-approved and all the funds ready by that eight month timeline."
What we always like to mention to people is you can purchase your home at that one month time starting point, even though we're only just digging ground.
Then you can have your pre-approval done, give your first deposit, and do a payment plan over the next series of months to accumulate to your 5%, which is what the banks need.
What are some other questions should I be asking maybe the builder, or my real estate agent when I'm in that time frame?
A lot of times with new construction, people should be asking about the warranties and the inclusions in the warranties.
Most builders right now, they would include a one year comprehensive warranty. Then you would be able to have a 24/7 call line if your hot water tank was leaking in the middle of the night.
There's someone to call. In [00:01:30] that one year you also can say, "My door's not closing quite right."
Those things are all included in the warranty, and up to ten years for structural warranty."
All builders are a little bit different within their warranty timeline, so it's always best to ask about the warranty.
How about some of the questions I should ask relating to if I'm selling a home?
Jessica McNabb: Yeah.
What are some things that I should get done or questions I should ask in terms of that?
With having to sell your house, as well as buying a new property, we see that a lot.
Typically, [00:02:00] the realtor can give you a lot of guidance in terms of when should I list my property, versus when the new home is going to be ready to be built.
Right now in this market we're saying days on market is about three to four months.
Karl Yeh: Okay.
If you know your build timeline with your builder, they're saying, six to eight months, maybe it could be a little of wait time to list your home.
Karl Yeh: Yeah.
A lot of times people will say, "Well maybe I'll just live with my parents or a friend in the meantime," because with buying a new property and kind of an up in the air building timeline, there's always going to be an overlap in where do [00:02:30] I need to be for a few months.
Should I maybe add an additional maybe one or two months, on top of the build time just to give myself some space, or does it usually within the timeframe that the builder provides?
Right. It's always best to stay in really close contact with your area manager or your sales rep. Most of the sales reps give you updates and timelines anyways. It's different builder to builder.
It would be just kind of awkward, you sell your house, you don't have a place to live. Then you're kind of stuck for a couple of months.
Jessica McNabb: Definitely.
Either living [00:03:00] out of your parent's basements or something, right, or in a hotel or wherever you need to live.
Jessica McNabb: Right, yeah.
Karl Yeh: Do you have anything else to add?
Jessica McNabb: No, that should be good, yeah.
Karl Yeh: Awesome, well thank you very much Jessica.
Jessica McNabb: Thanks.
Karl Yeh: Thank you very much everyone for joining us and we'll catch you next time.
Let us know if you have additional home buying or selling questions that we can answer by submitting them in the comments section below.
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About Jessica McNabb:
University of Alberta: Bachelor of Science in Registered Nursing 2011 McConnell Place North Alzheimers Care Centre 3 Years - Client Care Leader Brookfield Residential 6 Years - Area Sales Manager Sold over 200 Homes
While a career in Nursing was extremely fulfilling, I also wanted to explore a career in home sales. After 6 years of being in the New Home Sales Industry, I still feel the same sense of fulfillment through taking clients from start to finish building their home.