The Home Buying Process

Frequently asked questions about buying a new home from the New Home Buyer’s Guide BC Homes & Resorts from August 25 – September 22, 2006 edition with permission from the Canadian Home Builder’s Association (Visit CHBA at www.chba.com and HomeBase.ca for more information).

The home buying process should begin with questions – lots of questions to help you to make the right decisions about the builder you choose and the home you buy. Asking questions helps you to understand the buying process and eliminate any uncertainty you may have about it. Here are some of the common questions that home buyers ask in consumer seminars, in calls to local Home Buyers’ Association offices and in builders’ sales centres.

How do I make sure that I choose the right new home builder?

Talk with several new home builders first. Check out each company and the quality of their homes. Visit model homes or sales offices. Get facts and figures about every builder: How long have you been in business? Where have you built real estate before? Where are you building now? Can I visit one of your construction sites? Are you a member of the Canadian Home Builders’ Association? And so on. Ask about their customer service and third party warranty. Ask for references from past customers and follow up with them.

What kind of products will my builder use?

Professional builders use only products with a good reputation and a proven track record, products that are made by established manufacturers, meet Canadian standards and come with a warranty. The use of brand-name products in new homes offers a double benefit – you know what you are getting and so does your builder. I am not sure about my builder’s construction methods and technologies. How do I know they really work? Home building has advanced tremendously even over the last ten years, and technically, new homes are more sophisticated than they used to be. If you have questions about any aspect of how your home is built or how any of the systems or products work, such as the furnace or ventilation equipment, don’t hesitate to ask. Professional builders will be happy to explain things in detail. They often have cutaways or examples in their model homes or offices, or they can give you manufacturer’s information or third-party (such as government) reference materials.

What if there is a delay in finishing the home?

Both you and the builder want to see your home completed on time, and in the vast majority of cases, your home will be ready as scheduled. Occasionally, a delay may happen as a result of the unforeseeable – most often, sudden shortages of materials or labour. When a delay in unavoidable, your builder will work hard to minimize any inconvenience to you and your family. Ask your real estate builder to explain in detail what you can expect in case of delay.

Can I visit the construction site to watch the progress of my home?

Seeing your home take shape can be an exciting aspect of buying a new home. Ask your builder about the company’s policy on site visits and how to make arrangements. Can you tour your home while it is in progress and when? During construction hours, or in the evening and on weekends? Keep in mind that, for safety reasons, you should not enter the construction site for an unscheduled visit.

I have heard about the “other costs” of buying a home. What are they?

By far, the largest cost of home buying is the price of the house. However, there are some accompanying costs that you should be aware of. These costs vary from one region to another, but typically include lawyer’s fees, an appraisal fee (for mortgage purposes), fire insurance, and adjustments if you are selling your current home. Ask your builder or lender to give you a list of items and an estimate of costs. (Home buyers are often encouraged to set aside between 1.5% and 2.5% of the rice of the house for additional costs). At the same time, make sure to ask about the projected taxes for the new home, and the builder’s estimate for utility bills.

How long will it take to build my home?

The time required to build a new home can vary considerably, depending on development of the land, availability of labour, size and design of the home and a number of other factors. In larger developments, construction of your home may no begin until a certain percentage of the homes have been pre-sold to ensure an efficient and cost effective real estate construction process. Your builder will provide you with a detailed schedule of events and milestones, so you’ll know exactly what to expect and when.

Can I make changes to the design?

Today, customizing is the norm, not the exception. Often, your chosen plan can be modified, before the foundation is built, to suit your own needs and desires – eg. Moving walls, wxpanding closets, adding windows. However, each builder has a different approach, so ask about flexibility and limitations in the design. Do I have choices? Can I make changes and when? In larger real estate developments, the exterior style elements and colour scheme may be architecturally determined, so there are fewer opportunities to accommodate personal preference.

What is warranted and for how long?

Professional real estate builders provide third-party warranty on their homes to protect purchasers against faulty materials or workmanship, usually for one year, and against major structural faults for up to five years (up to ten under extended warranty options). The warranty also protects deposits up to a certain amount. Warranty programs vary from one province to another, so make sure to have your builder explain exactly what’s covered or call your program office for more information.

What else should I know about?

How buyers ask many other questions, depending on the specific circumstances. For instance, when you are buying from a model home or from a drawing, you want to know if there are any differences between what you see and what you get. You also want to know about your choice of features, if you can supply your own fixtures or materials, and if you get a credit or refund when eliminating items included with the home. In large developments, ask to see the utility plan: Where are the electrical boxes or panels placed? Streetlights and postal boxes? Where is the bus stop? Also find out about the landscaping plan and when the roads will be paved.

Professional home builders welcome your questions. They know that a well informed customer is most often a satisfied customer – the greater your confidence in them, the more satisfying the process for both you and your builder.