Thinking of buying a New Home?
Here is an overview of the process.
Buying a brand new home is a big decision and an important investment. You want to buy with confidence, enjoy the experience and know that you have made the best decision for you and your family.
Typically the process of buying a brand new home takes place over time and in several stages. Once you have narrowed your choices down to one community, one builder and one home, you are ready to work out the details and sign a contract with your builder. Then it’s time to step back and let the builder do the work.
Get off to a great start by doing some pre-planning before you go house hunting. Make lists of what’s important and divide them into must-haves and would-be-nice-to-haves. Also think about what you absolutely don’t want to live with. You should consider if the community is the right distance to work, school, and public transit etc. Think about the daily activities taking place in your home. Will you entertain often? Does someone have mobility restrictions or is someone likely to in the future and is the home flexible for future needs?
Be realistic about your budget. Know what down payment you have available and what kind of mortgage you are comfortable with.
Find out who the reputable builders are in our area. Is the company a member of the Sudbury & District Home Builders’ Association? Membership is an important indication of their professionalism. Are they registered with Tarion? It is illegal to build a home for resale in Ontario without being registered.
Find out what your payment schedule is with your builder. When can construction begin, and when can you expect to move in? Who will your contact person be, before and during construction of your home? Would you be able to visit your home during construction?
Just before your home is completed, you will be asked to join the builder on a walk-through of the home to verify that the work has been done according to plan. You will be asked to sign a certificate of completion, noting any last-minute touch-ups or details yet to be done. This triggers the Tarion warranty coverage on your home. The builder will provide you with the manufacturers’ warranties on components and products used in your home.
On closing day, title to the home is transferred to you from the builder, the outstanding payment balance is transferred from your financial institution to the builder, and you get the keys to your new home. This is done through lawyers who register everything with the appropriate authorities.
Before the end of your first year in the house, the builder will touch up any small imperfections that may have emerged due to the house settling and materials drying out (completely normal in any new home).
The five phases of home construction are: Preconstruction, Foundation, Framing, Interior and Exterior work, and near completion to handover. Changes, even small ones, at any of these stages can significantly impact the cost or scheduling of your home. That is why your pre-planning is so important.
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