When developers find property that they want to develop, they try to find buyers for the property before they build all the homes. They will usually build a show home that they can use to demonstrate what the neighborhood will look like. Then, they will build the home based on your specifications. When you are buying in a new home subdivision, there are a few things you need to be aware of that are different than other home buying processes.

Figure Out What Upgrades You Want

When you look at the model home, be sure to find out what is standard and what is an upgrade; keep in mind that many model homes include upgrades, not just the standard features.

From there, you need to figure out what upgrades you want to make to the home. Some contractors build standard homes with nice features, leaving the upgrades to more cosmetic choices, such as the type of flooring or countertops used in the home. Other contractors consider anything that is extra at all to be an upgrade, so that even things that seem basic, like double-hung windows, may actually be an upgrade.

Go over the list of what is part of the standard build and that is an upgrade and make a list of the upgrades that you want in your home.

Figure Out What Upgrades Can Wait

Once you have a list of upgrades, figure out what ones you should do now and what should wait. For example, wiring your home for an alarm system, or putting in extra outlets or using higher quality insulation are all upgrades that you should make now.

Upgrades that can wait are more cosmetic, such as putting in stainless steel appliances or putting in wood floors. If you can't afford all the upgrades you want to add to the home, figure out what ones would be easier to do now while the home is under constructions, and what upgrades you could add to the home down the line.

Find Out if Your Lender Will Finance the Upgrades

Next, you need to figure out if your lender will finance the upgrades. Some lenders will all the upgrades to be included in the purchase price and thus the mortgage for the home. Other lenders consider upgrades to be home improvements, and they will only approve your loan for the purchase price of the home. Also, if you are using a special loan program, that loan may not cover upgrades.

You need to figure out if the cost of the upgrades will be coming out of your pocket or from your loan.

Learn Your Cancellation Options

Finally, you need to learn what your cancellation options are. How long do you have to decide on upgrades? How long do you have to change your mind? That way, you can take your time to make an informed decisions.

When it comes to purchasing a new construction home in a subdivision, you will have some say over how the house looks. You will be able to customize the home. Think carefully about what upgrades are easier to put in now, and what upgrades you can wait on. Figure out how you can finance the upgrades and be sure you know your cancellation options.