Frequently Asked Questions About Buying a New Home

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Written by Administrator

Monday, 04 May 2009 11:34

Purchasing a home should begin with questions—lots of questions to help you make the right decisions about the builder you choose and the home you buy. Asking questions also 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 the Greater Ottawa Home Builders’ Association office and at builders’ sales centres.

How do I find the right builder?

The Greater Ottawa Home Builders’ Association is a good place to start to get the names of professional builders in your area. Visit the Classified Directory of Members to obtain the names of professional builders in Greater Ottawa. Also ask friends and family for recommendations. Talk with several builders before you make your final choice. Check each company and the quality of their homes. Visit model homes or sales offices. Compare facts and figures about every builder: How long have you been in business? Where have you built before? Where are you building now? Can I see one of your construction sites? Ask about builders’ customer service and third-party warranty. Ask for references from past customers and follow up on them.

How long will it take to build my home?

Usually, it takes between 12 and 16 weeks to construct a new home, depending on size, design, the season, permits and a number of other factors. In larger developments, construction of your home may not begin until a certain percentage of the homes have been pre-sold, to ensure an efficient and cost-effective construction process. Your builder will provide you with a detailed schedule 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—e.g., moving walls, expanding 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 developments, the exterior style elements and colour scheme may be architecturally determined, so there may be fewer opportunities for changes to accommodate personal preferences.

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 what arrangements are required. Keep in mind that for safety reasons, you should not enter the construction site for an unscheduled visit.

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 to move into as scheduled. Very rarely, delays do happen as a result of the unforeseeable—most often, sudden shortages of materials or labour. Ask your builder to explain in detail what you can expect in case of delay—notification requirements and so on—and make sure that it is covered in the Agreement of Purchase and Sale. In the rare event of a significant delay, the Ontario New Home Warranty Program may provide financial assistance for costs which may be incurred, including accomodation and storage of furniture.

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, the provincial land transfer tax, 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 price of the house.) At the same time, make sure to ask about the projected taxes for the new home, and the builder’s estimate for utility bills.

What kind of products will my builder use?

Reputable builders use 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 over the last 10 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 the systems or products work, such as the furnace or ventilation equipment, don't hesitate to ask. Professional builders will be happy to explain specifications in detail. They often have cut-aways or examples in their model homes or offices, or they can give you manufacturers’ information or third-party (such as government) reference material.

What is covered by warranty and for how long?

Professional builders provide third-party warranty on their homes to protect purchasers against faulty materials or work for one year. The exterior of the home plus all mechanical and electrical systems are covered for two years. Major structural faults are covered for seven years. The warranty also protect deposits up to $20,000. (Never provide a deposit greter than $20,000.) To find out exactly what's covered, visit the web site of the Ontario New Home Warranty Program.

What else should I know about?

Home 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. In large developments, ask to see the utility plan: Where are the hydro boxes or panels placed? Street lights 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 of you.