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1. Not Reading the Builder Warranty
Whether the warranty is from the builder directly or through a third
party, this document will describe in great detail what is covered and
what is not covered in your new home. A thorough understanding is
critical, since covered items may vary from builder to builder.
2. Failure to Understand the Public Offering Statement
The Public Offering Statement, or POS, sets forth any party wall
agreements, protective covenants and declarations for the neighborhood,
bylaws and articles of incorporation for the development, and a budget
for the homeowners association, if applicable. As a buyer, you have 15
days from receipt of the POS to review and accept or reject it.
3. Making Changes after the Contract is Written
Since most builders will charge a substantial change order fee, it's
important to anticipate any upgrades so they can be included in the
original offer.
4. Locking in a Mortgage Rate Too Early
Most builders will give you an estimate of when construction will be
completed, but that's all it is... an estimate. Waiting until the
appropriate stage of construction to lock in your interest rate can save
you a significant amount of money.
5. Infrequent Progress Checks
Nobody's perfect... checking on the building progress from time to time
can catch some of the inevitable errors made in your home.
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