Tips for Buying Charleston New Construction Homes in Mount Pleasant

Are you interested in buying a Charleston, SC new construction home?  Most of the new homes are located in Mount Pleasant, which is one of the newest suburbs in the area.  Because of this large supply of homes, buyers flock to this area whether they’re looking for move in ready homes or properties to build a custom home.

There are a few things to note when visiting Mount Pleasant new homes.  Having your own real estate agent is a must.  Asking the right questions can help you set proper expectations with regards to your new home and financial obligations.  It is also important to attend to the walk thru and a final walk thru of your home before heading to the closing table.

First, take your real estate agent with you to the Mount Pleasant new homes offices, because almost every home builder offers to pay your real estate agent. In the Charleston real estate market specifically, the house price does not increase if you buy a new construction home.  So, why not be represented if it’s free?  Your agent can help you decide how much to offer and will help you decide which lot and home will be best for resale in Charleston’s market in the future. Your agent will help write and explain the sales contract and negotiate the best price for your new construction home.  When purchasing any home, not just new construction, you greatly benefit by having an agent handle the closing process for you.  Purchasing a home can be tricky and very time consuming.  A good agent will coordinate the lender, attorney, builder, appraiser, home inspector, etc. and will foresee hurdles you may miss, allowing for a much smoother closing.

Secondly, you may want to bring your preapproval letter from your lender, your checkbook, a camera, a measuring tape, measurements of any specific or bulky furniture, a notepad, and a list of questions to your new construction appointment.  Among the list of questions for the Mt. Pleasant builders, be sure to ask how much the builder is willing to pay toward closing costs, and also whether you have to use a specific lender or attorney to get the discount.    New home builders in the Mt. Pleasant area are now starting to pay an amount toward buyers’ closing costs.  Usually the buyer decides, for example, whether to get 2k off the price or get 2k in closing costs.  If you are cash poor, raising the purchase price by 2k may be a better idea than coming out of pocket the extra 2k at the closing table. 

Another good question to ask is what comes standard in the home.  Charleston real estate home builders, like many others around the country, usually will show you a gorgeous model home that has been fully upgraded, so you are able to visualize what some of the upgrades look like.  However, be aware that upgrades such as wood flooring and granite countertops are not inexpensive, so don’t get your heart set on the model if you are already at the top of your budget.  

How much will it cost to add the upgrades you want in your new construction home?  What lots does the builder have available?  Are there lot premiums attached to any of these lots?  Some of the Mount Pleasant new homes that have private yards, back up to water, or are larger have a lot premium attached to them.  It can be as much as 5k-30k for these premium new construction lots. 

When will the construction be completed? Dates are somewhat negotiable for most Charleston new construction since the mild weather here means that builders can work year round.  What kind of home warranty is there for these homes, and what does it cover?  How much will the earnest money check be?  You will be expected to put up an earnest money check when you sign the contract to purchase from a builder.  The amount will vary based on the cost of the home, but normally it’s anywhere from 1%-20% of the sales price.  The builder may also require a second earnest money check once you pick out your upgrades.  Usually it is 10%-50% of just the upgrade cost.  What will my estimated closing costs be?  Once you are preapproved and know which home you want to purchase, your real estate agent should be able to give you an estimate of closing costs.  The final figure will not be revealed until 24 hours before closing, normally.  You will not pay a single mortgage payment until your home is 100% complete and you have signed the closing documents.

Lastly, you have the option of hiring your own home inspector.  About 80% or so of people that buy new construction homes in Mt. Pleasant do not use their own inspector because they figure that the town of Mt. Pleasant’s inspector would not have issued a certificate of occupancy had there been any major problems.  However, two sets of eyes are better than one, so it’s not a bad idea to have your own inspector take a look!  If any problems are found, the builder will make a list of these items during the walk-thru, which usually takes place a week or so before closing.  Then, 24-48 hours before closing, the buyer makes sure that the items mentioned during the previous walk-thru were done prior to closing.  Finally, the buyer and the seller representative meet at the buyer’s attorney’s office for approximately an hour to have the closing documents explained, sign papers, and walk away with their warranty documents and the keys to their new home.

If you are looking to purchase a new construction home in Mt. Pleasant (or any other area in Charleston) make sure to hire your own real estate agent.  Ask the right questions so you know what your new home will look like, and what financial obligations you will have.  Finally, being present for a walk-thru or orientation, a final walk-thru, and the closing is very important.  If you prepare ahead of time, the process of purchasing any home will be a more exciting and pleasant experience.