your homebuilding process
Whether this is your first home or your third, buying a new home is completely different from buying a resale home. First and foremost the new home process, from the time you sign to the time you move in, is approximately 9 months* versus a month or so for resale. Plan this timeline accordingly by working back from when you want to move in, take into consideration seasonal preference or a work situation.
The trade off for a long timeline is your new home will be more personalized and you can plan it to suite your lifestyle. Another advantage is the comprehensive warranties that accompany a new home. Your home will be completely insured for any builder defect for up to a year after the possession date.
Visit the showhomes
Start the home buying process by visiting as many show homes as possible. There are numerous sizes, builder plans, and styles to consider. The more showhomes you visit the better you will understand your preferences and needs.
Show homes also give you the opportunity to examine a builder’s craftsmanship. Take your time inspecting the quality of construction features such as structural components, carpentry and finishes such as flooring and paint.
This is also your chance to ask any questions about the home or the builder you may have. Showhomes are staffed by knowledgeable sales associates who are there to assist you during the home buying process.
Get to know the builders
Choosing a builder is a crucial turning point in your home search. From start to finish, it can take the better part of a year to build a home. You want to make sure that the company you partner with for the experience will be working with you and not against you.
The warranty provided with the home is an important consideration. New homes in Alberta built by registered members of the Alberta New Home Warranty Program (ANHWP) are automatically enrolled into the program when you sign a purchase agreement with the builder. Ask to see a copy of the builder’s registration certificate, verifying that they are registered with the program.
Also find out from each builder what kind of service you can expect after the sale. Builders are typically expected to contact you after you move in to resolve any problems covered by the builders warranty.
Purchasing your home – purchase agreement
Once you have chosen the home you want to build and the builder you want to build with speak to the builder’s representative about a purchase agreement. The purchase agreement is a legally binding agreement between you and the builder for the sale of a home to be constructed and the land it will be built on.
The Alberta New Home Warranty Program (ANHWP) provides the forms to registered builders and establishes the terms and conditions in the agreement. The agreement will describe the property in detail, including a civic address, a legal address, total selling price, and the deposit you will have to make. With Sabal, your deposit is protected by the ANHWP for up to 20% of the purchase price for a single-family home (to a maximum of $100,000).
It’s important to make sure that everything is specifically written into the agreement. Anything left out, even if you had discussed items verbally with your sales consultant, will not be binding on either party. If you have any questions or concerns regarding this document you may want to consult legal counsel. Buyers who purchase homes from Sabal have access to legal counsel at the time of closing, provided at no extra charge.
The final step in creating a binding purchase agreement is mortgage approval from your bank. The quicker you obtain approval, the soon the pre-construction phase will begin.