Buying a New Construction Home in Peterborough
The process of buying a new construction or new build home is a little different from buying a previously owned property. One of the key differences is that you minimize the risk of sudden changes in the negotiation process because there isn’t a previous owner. There have been countless instances when previous homeowners increased without warning the property’s asking price because emotional attachment often causes sellers to overvalue their homes. When you opt for a new construction house, you deal directly with a builder of your choosing. This flexibility allows you to research builders based on reviews, look at their completed projects, and make an informed decision based on their reputation, track record, and designs that align with your ideal home. Successful home builders have many years of industry experience, are talented, and pride themselves on developing properties that buyers would be proud to call home.
Buying a new construction home in Peterborough is exciting, and if you have decided to do so, you might not know where to begin. Having an idea of the type of new construction or pre-build home that would suit your lifestyle is a good place to start.
Types of new construction homes in Peterborough
Bungalows are one-story detached homes that are generally smaller in size compared to other types of detached houses. New construction bungalows offer incredible versatility for growing families, couples, and individuals wishing to downsize. From large windows that flood your space with natural light to spacious modern kitchens, choosing a new build bungalow in Peterborough offers layouts that maximize the amount of living space — in other words, not one square foot goes to waste.
While detached homes come in various sizes, they are generally larger than attached or semi-detached homes. New construction detached homes, in general, will provide more space for growing families or if you plan on having elderly relatives move in at some point. Single-detached houses are typically built on larger lots, which not only gives you yard space, they offer residents more privacy as you and your neighbours are not directly connected.
Townhouses are multi-story dwellings with private entrances that share one or more walls with neighbouring properties. This is a fantastic way to get into property ownership and investing, and several new developments in Peterborough are selling pre-construction townhomes. Pre-build construction or newly built townhomes in Peterborough are the perfect alternatives to condominiums or apartments. Unlike high-rise condos, townhouses have private entrances and no common hallways, but still come at a lower cost than detached homes.
7 Steps to Buying New Construction Homes in Ontario
Just as you would when buying a previously owned home, you must complete key steps to buy a new build home.
1. Establish a Budget
Calculating your budget is a critical step in the home buying process. Ensure that the purchase of a new construction home works with your financial situation before you begin browsing for a property. If you need help, you can set up an appointment with your financial institution to discuss affordability, and mortgage financing options. A search for a new home would be fruitless if you could not afford it. Just as you would when buying a previously owned home, you need to consider the affordability of the property. When investing in a new home, don’t forget to include additional costs such as furniture or window coverings — things add up quickly and if you’re not careful, you’ll find yourself carrying more debt than you had anticipated.
2. Mortgage Pre-Approval
Once you have determined a budget that works for you, the next step would be to get a mortgage pre-approval to present to your builders. A pre-approval mortgage letter from your lender proves that you are a viable loan candidate who will be able to purchase the home and keep up with monthly payments.
3. Sales Process
Typically, real estate agents play an essential role in the home buying process. However, when you buy new construction, having an agent isn’t really necessary. Builders have dedicated sales reps who can help guide you through the ins and outs of the buying process, especially if you are a first time home buyer. Also, they have extensive knowledge about the properties, and can help you with upgrades and other options to build the home of your dreams.
4. Read up on Neighbourhoods in Peterborough
While Peterborough is a beautiful city with a lot to offer as a whole, some neighbourhoods might suit your lifestyle better than others. For example — if you have children or teenagers, you would want to consider an area that is a close drive or bike ride to school. One of the best things about Peterborough is that roadways and pedestrian walkways make stores, restaurants, medical centres, and attractions easily accessible.
5. Research Reputable Builders in the Neighbourhood of Your Choice
Once you’ve found your perfect neighbourhood, take a look at builders in the area. This step is critical, as you want to find a reputable builder that has a proven track record, positive reviews, and of course, extensive industry experience. With over 30 years of experience in home building, Maplewood Homes is a recognized partner of the Canadian Home Builders Associations, The Ontario Home Builders’ Association, and The Peterborough and The Kawarthas Home Builders’ Association. Further, Maplewood homes are backed by Tarion, an organization dedicated to enforcing Ontario New Home Warranties Plan Act and Regulations. Tarion provides home buyers peace of mind through deposit protection, delayed closing compensation, and requires the construction of homes to meet high-quality standards, protect against Ontario Building Code violations, and ensure that your home is free from defects in material.
6. Signing the Agreement of Purchase and Sale (APS)
A New Home Builders Sales Specialist should walk you through the Agreement and fully explain all the different aspects. Maplewood Homes wants you to feel completely at ease throughout your home purchasing process and encourages you to ask any questions that you may have prior to signing.
7. Working with the developer to customize your home
Customizing features of your new home is one of the most fun parts of the buying process. This step also takes careful consideration, as these features will be with you for years to come. Incorporating upgraded Features and Finishes will give an opportunity for new home buyers to get creative and infuse their personal style which you wouldn’t get in a pre-owned home.
For most people, buying a home will be the single most significant financial investment of their lifetimes. When all is said and done, you should be satisfied not only with the purchase price, but also with the manner your new house will support and enhance your family’s lifestyle. Consider all aspects of the home purchase thoroughly and have an open conversation with any family members or partners involved to ensure that you are on the same page. At the end of the day, you’re purchasing much more than a house — you are creating a home where you can thrive, which is an investment for your future, and the future of your family.