The ABC’s of Buying a New Construction Home in South Boston

Thanks to all the growth happening in South Boston, there are more new construction developments in the neighborhood than ever before. With all of the new condos popping up all over South Boston, many people, both first-time homeowners and property-owning veterans alike, will be looking to purchase into these new construction projects.

Even if you’ve owned a home for years, you might be surprised to learn that there are some aspects to buying a newly constructed home that don’t apply when buying one that was previously owned. For example, one added variable is whether the construction quality is any good—something that could affect your quality of life in the home and resale price down the road. 

While buying a home that had previously been lived in comes with its own set of pros and cons, people tend to be a little more familiar with the process, and can expect that buying a new construction will be exactly the same. 

However, that’s not the case. 

To help prepare any of the aspiring homeowners of South Boston’s many new and upcoming projects, here are a few tips to follow:

Work With a Rock Star Local Agent

Maybe you just want to dip your toes in and check out the model units to see if you’re interested in going any further, but even so, now more than ever, you need a great local agent by your side with in-depth knowledge on the local new construction market.

This agent shouldn't be there to just hold your hand during the process and add no value whatsoever. They should be able to advise you on whether buying into this project offers quality and value compared to other new construction builds in the area. They should also have an extensive database of new construction projects at their fingertips, including everything from the initial planning phases through construction complete projects which will give you access to off market inventory. Lastly, your agent will also have attorney recommendations who have solid experience in new construction transactions.

Go After Quality Construction

Due to the recent construction boom, buyers are faced with more options, as well as many developments to choose from. This can be overwhelming, and you might not be sure what to look for or even question whether South Boston still makes sense at these price points.

From the moment you walk through the front door(if there a front door at this point in the construction process), engage your senses to get a good idea of what you're smelling and hearing. One of the biggest issues I’ve noticed from buyers is sound leakage. Just think of it: you move into a brand-new building and then you can hear your neighbors’ every footstep, slammed door, and conversation. Since we live in such a busy urban environment, sound proofing is a very important aspect to solid construction which is often overlooked by developers. Good constructions have been designed with noise control in mind. This means exterior noise too. Make sure quality windows are being used, specifically sound-proof windows.

Design matters. You don't want a "cookie cutter" building where a developer has rinsed and repeated with minimal design changes from the last project. A quality building will have spent a lot of time on the unit’s layouts and how the communal spaces function.

Materials and fixtures matter, as well. Pay attention to the finishes. There is no set standard on the exact brands to choose, but they should be high quality. I like to look at the less obvious things, like how the outdoor spaces have been equipped, which gives me an idea of the quality of the build.

Pay attention to the little things. Are the cabinet doors in the kitchen level? Do they have soft-closing ability? Are grout lines even? These type of details can frustrate you for years to come if they’re not all perfect.

Negotiations Are a Bit Different Than a Resale

While buyers often have the ability to negotiate down the list price of a previously-owned home with a winning offer, the chances of that happening for a new construction can be harder in our market, but there is market softening on the horizon at certain price points.

Builders will be hesitant to lower prices for one buyer, because doing so might make other buyers expect the same price reduction, therefore lowering the value of the rest of the homes in the building.

However, that doesn’t mean you won’t be able to negotiate at all.

Many buyers are receptive to negotiations regarding add-on features. Upgrades are easier for builders to negotiate and even parking spaces, since they’re more on the down-low, and are less likely to lower the value of the properties overall. 

Get Everything in Writing

This one might seem obvious, since it’s a good tip for someone buying a previously-owned home, as well. However, when you’re buying a new construction, it’s very likely the project isn’t even finished, yet. You'll get a spec sheet from the builder which will show you the features and options for lighting, paint trim, flooring, appliances, etc. You have to make sure any allowances are in writing and are attached to the contract documents. The same can be said about change orders since these are very common with new construction. If this is the case, it's really important to understand the finishes of the materials, what will happen if the project isn't completed on time and the deadline for decisions that take place throughout the process. Sometimes if the project is delayed you'll want protection for your mortgage rate lock. As you're likely aware, verbal conversations are not binding, so get everything important in writing.

Finally, anticipate unfinished items right up to the closing date, but this is common. There will almost always be a punch list of unfinished items and if these items are serious enough there could even be an escrow holdback at closing requiring the builder to finish these items before payment is released.

Don’t Let the Model Unit Fool You

Model units exist to seduce buyers, and they do that very well. Not only are they staged to best flatter the space, but they might also include many upgrades and add-ons that won’t be included in your home unless you’re willing to shell out extra money.

Don’t take anything for granted, and ask about every feature you find appealing, such as the appliances, countertops, and bathroom fixtures. 

Additionally, your home may not end up looking exactly like the one you see in the floor-plan or in-person. 

A Developer is Only as Good as Their Last Project

Make sure you and your agent do some research on the builder, but keep in mind many builders will have both satisfied and unsatisfied customers. Pull the plans submitted to the city. It will tell you the specs and who the key players are on the project.

Finally, make sure any concerns you have are covered in the P&S. 

Don’t Go in Blind

If you’ve followed all the previous steps laid out here, then you’re on the right track, but buying a home is an in-depth process, with a lot of moving variables. The best thing you can do to protect yourself is to make sure you’re as well-informed as possible, and that means doing some research, and gathering information.

Here are some ways you can be better informed:

Get the Home Inspected

Many buyers want to pass on this because it's new construction, but I still feel a home inspector fluent in new builds can be worth the cost especially if the builder is newer to the scene. If construction is ongoing, no builder will want to agree to an inspection contingency which could unravel the deal so close to closing. This would be more for informational purposes. Though the builders will have the home inspected themselves, you’ll be best off if you hire an inspector representing your own interests to look over everything and make sure you aren’t going to move in to a future money-sink.

Figure Out What the City Has Planned for the Surrounding Neighborhood and Area

Have your agent do some due diligence and see what is planned in the near and distant future for the area surrounding your home. Sure, it would be frustrating if you lost the beautiful view you had outside your deck, but it could be even worse.

Buying a new construction has its pros and cons, but for the right buyers, it doesn't have to be this stressful experience. Of course, as always, be open and communicative with your agent—he should be able to help you every step of the way, and help keep you from suffering too many problems.

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Have any questions? As a homeowner, does it make sense to sell now? Here are 3 things that set South Boston apart from other neighborhoods.

Schedule a meeting or chat with me here

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Chris Fitzpatrick is a licensed real estate broker in South Boston. Chris prides himself on his knowledge of South Boston nuances, off-market listings and new development projects that are rapidly shaping the neighborhood. He focuses on adding value in the form of creating proprietary real estate market data, predictive analytics, and technology helping sellers, buyers, and developers. Chris can talk your ear off about the benefits of yoga, loves to travel, is passionate about entrepreneurship, and loves rooting for the underdog.