1.
What to Know When
Buying a New Home
By Jason Cohen Pittsburgh

2.
Not much room for negotiation
• There’s no expectation
of back-and-forth price
negotiations like in
resale.!
• The only exceptions
are when there are just
a few homes left or
there’s standing
inventory to sell.

3.
You might get some
free upgrades!
• You can negotiate a few must-
haves into the deal to help offset
any additional costs.!
• Some builders may also help
with closing costs as an
incentive to buy.

4.
There are incentives to using
the builder’s in-house lender
• Plenty of builders have in-house or preferred lenders.!
• Using them could mean better terms or a rate that’s bought down.!
• NOTE: the builder still can’t legally make you use their lender.

5.
Use a
realtor!
• They’re great for
finding you a home,
whether it’s new or
being resold.

6.
Your home won’t look like the
model
• Model homes are decked out with pretty walls, floors and decorations
that won’t be included in the empty shell that you end up buying.!
• Be realistic about what you want, need, can afford and how that
translates to what you’re seeing.

7.
The advertised price
is different from what
you actually pay
• Making the home look
like the model will take
tens of thousands of
dollars.!
• You can roll some of
those upgrades into the
mortgage, since
upgrading during the
initial construction phase
tends to be cheaper than
upgrading later on.

8.
You need to deal
with construction
noise and traffic
• Depending on the community where you live, it might
take time to complete construction.!
• This means dealing with congestion and hassle.!
• Amenities such as pools and sport courts might not be
built by the time you end up moving in.!
• Manage your expectations by asking ahead of time
about the construction schedule.

9.
Get a builder warranty
• Offers limited
coverage on
workmanship and
materials related
to various parts of
the home.!
• They typically
define how repairs
will be made.