Buy house directly from builder
Buying a house directly from a builder is not much different from any other house purchase. Buying from an
existing owner does mean that the property has been lived in, and that any shortcomings of the building will have
been identified and dealt with, whereas with a brand new property you are taking the builder on trust to some
extent.
Having said that, any reputable builder will be able to provide you with sight of all documentation to prove the
building had been erected in accordance with all the state and local building regulations, and that he has title to
the land on which it is built.
One matter you should be aware of though, is whether a new house is worth the price being asked for it. The
value of any property, at any time is based solely on what someone is prepared to pay for it, and that in
itself, may be limited by mortgage availability considerations.
New properties have no track record of ownership, and therefore tend to be compared to other similar properties
in the area, when deciding if the price is reasonable.
Builders often include modern kitchens and appliances and other incentives in the asking price, as an inducement
to buy. Most buyers are looking for somewhere they can move into with the minimum amount of work required, so new,
fully fitted properties are an attractive proposition. However, your mortgage will be based on the lenders
perception of what the property is worth - its bricks and mortar value - and that doesn't include fixtures
and fittings, because they are depreciating assets.
So be careful about how much you pay when you buy a house directly from a builder. And remember, it's
always advisable to formalise your house purchase through an attorney.
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