Some Steps to Follow and Questions to Ask when buying a New Home
- Visit your financial institution and ask to be pre-approved for a mortgage – this will help you know how much you can afford and consequently focus your search for your “new” home;
- Make a list of “wants” versus “needs”;
- Visit display suites, compare asking prices and selling prices, and check out local amenities and the neighbourhood;
- Do not be lured by a beautiful brochure, a comfortable floor plan, or the new finishing. All of these appeal to buyers’ emotions. Despite public perception, a new home is not automatically guaranteed to be well built nor perfect. It is essential to research the builder.
- Some important questions to ask:
- How long has the builder been in business?
- What are the names and addresses of the homes and projects the builder has constructed?
- Ask for references &/or home owners who have purchased from this builder.
- Are they happy with their home?
- Have they experienced any problems?
- Would they buy another home from this builder?
- What is the builder’s after sale service policy?
- What responsibility will the builder assume for the subcontractor?
- Does the builder belong to a professional organization such as the Canadian Home Builders’ Association or the Urban Development Institute?
- Does the builder and the trades in their employ have any formal training?
- Is the builder registered with the New Home Warranty Program?
- Is the home enrolled with the New Home Warranty Program?
- Inquire as to the availability and applicability of the New Home Warranty Program;
- Hire a lawyer (or Notary) to represent your interest and to review all documents on your behalf