How to Buy a Newly Constructed Home

Custom vs. Spec

• 1). Evaluate your move-in time line to determine whether a custom home or spec home suits your needs. Designing and building must occur prior to moving into a custom home. If you are willing and able to wait a year or more before moving into your new home, consider a custom-built home. Many spec homes are move-in ready. If you want to move into your new home right away, consider purchasing a spec home.
  
  
• 2). Compare your budget to the cost of custom-built homes and spec homes. In general, building a custom home costs substantially more than purchasing a spec home. Additionally, consider the cost of your home when deciding between a custom home and a spec home. Whereas arranging the design, construction and purchase of a custom home requires personal time and effort, spec homes are generally ready for purchase and moving in.
  
  
• 3). Consider the character differences between custom home neighborhoods and spec home neighborhoods. Spec home neighborhoods are often called "housing tracts" in reference to their large tracts of homogeneous structures. If you desire architectural variety, consider a neighborhood of custom-built homes. Additionally, spec homes lots tend to be smaller than custom home lots. If you desire a large yard or acreage, consider a custom-built home.
  
  

Buying a Newly Constructed Home

• 1). Contact a local real estate agent to receive personalized search assistance. If you'd like help finding and purchasing a home, a licensed real estate professional can help not only with home selection, but also with financial arrangements. If you plan to build a custom home, real estate professionals often provide contact information for contractors and real estate developers.
  
  
• 2). Search through print and online resources to begin your home search on your own. Search local print and online classifieds, such as newspapers and craigslist.org, to get a broad picture of the availability of newly constructed homes. Use telephone directories to contact real estate development and construction companies in your area; search under directory headings such as "Real Estate Developers" to find leads for spec homes. If you want to find a construction company to assist with all phases of a custom home construction, search under headings such "Construction Management."
  
  
• 3). Contact a financial institution to arrange financing for your home. Unless you are pay cash, you must secure a home loan to purchase a newly constructed house. Many home buyers secure financing prior to searching for a home, a process generally referred to as "pre-approval." If you want the ability to quickly purchase a home, become pre-approved for a home loan.