7 Common Mistakes to Avoid When Buying a New Construction Home in Atlanta

by Megan Humphries, North Atlanta REALTOR®

Purchasing a new construction home can be an exciting opportunity, but it's important to approach it with care. Without proper planning, buyers often make costly mistakes or have regrets that could have been avoided. From understanding your budget to fully inspecting the property, there are key steps that should not be overlooked. By being aware of these common pitfalls, you can ensure a smoother and more successful home-buying experience.

1. Failing to Understand Your Budget

Before shopping for a new home, it’s essential to have a full grasp of your budget. It’s easy to get carried away with upgrades, but understanding all the financial components—including principal payments, interest, property taxes, homeowners insurance, and HOA fees—is crucial. Additionally, you’ll need to account for an earnest money deposit (typically 5%-30% of the purchase price) and the upfront costs for upgrades, which are often 50% of the cost at the design center. By knowing your numbers ahead of time, you’ll avoid any unpleasant surprises.

2. Skipping Due Diligence on Location

When researching a new construction community and location, keep in mind, that it's more than just that. It’s important to investigate the surrounding community, school districts, property taxes, and future development plans. Take the time to understand how factors like sunlight exposure, lot location, and the proximity to future amenities or developments could impact your lifestyle and the home’s resale value. Are you okay with being in the back of the neighborhood and it takes 10 minutes to drive to the front? Are you okay with being on a hill with people speeding up past your home? Take your time thinking about the specific location of the lot.

3. Overlooking Your Lifestyle Needs

It’s easy to fall in love with a home’s design or model, but it’s essential to consider how the home fits your daily life and also your future life. Think beyond aesthetics. For example, if you have young children, a home on a steep hill might limit their ability to play outdoors safely. Consider how you will use the space and what design aspects are most important to you. Make a list of your top priorities and deal-breakers to ensure you select a home that will suit your long-term needs.

4. Not Fully Understanding the Contract

New construction contracts are often more complex than resale contracts, and buyers can get lost in the fine print. It's important to review timelines, cancellation clauses, and other key elements with a critical eye. Missing deadlines or failing to understand your rights could have serious financial repercussions. Working with a real estate agent or attorney to review the contract can help you avoid misunderstandings and ensure that you are fully aware of what you're signing.

5. Skipping Independent 3rd Party Inspections

Even though the home is brand new, skipping independent 3rd party inspections is a significant mistake. New homes can still have construction defects. Schedule inspections at key points during the construction process, such as the foundation stage and before drywall is installed. It’s also wise to hire a third-party inspector before the final walkthrough to catch any issues that may have been missed. Knowing your rights under Georgia’s Right to Repair Act will help ensure the builder addresses any problems post-construction.

6. Not Speaking Up During the Building Process

During the construction process, many buyers hesitate to voice their concerns. Whether it’s an issue with the quality of materials or something that looks “off” during the walkthrough, it's important to speak up immediately. If something doesn’t seem right, document it and insist that the builder address it. In one instance, I noticed a green tint on the stairs during a walkthrough. After insisting it was corrected, the issue was resolved. Don’t be afraid to advocate for yourself throughout the build.

7. Not Hiring a Real Estate Agent

Many buyers believe they don’t need a real estate agent when purchasing a new construction home, but this is a mistake. The builder’s agent represents the builder, not you. Without your own agent, you may miss opportunities to negotiate better terms, incentives, or upgrades. A real estate agent will act as your advocate and fiduciary, helping you secure a deal that best serves your needs and guiding you through the complexities of the transaction, especially regarding which upgrades will increase your resale value.

Bottom Line

By being mindful of these seven common mistakes, you’ll set yourself up for a smoother home-buying journey and a home that truly fits your needs. Taking the time to plan properly, ask the right questions, and advocate for yourself during the process will save you both time and stress. If you're interested to learn more or ready to purchase a new construction home in Atlanta, I’m here to help guide you every step of the way. I have personally built and purchased my new construction home. Feel free to reach out to me at 404-850-0286, and let’s make sure your next home-buying experience is a success.