Buying a Home on Nantucket Pre-Construction
There is a lot of demand for new construction homes on Nantucket. It is not uncommon to purchase the home prior to completion or even before the builder breaks ground on construction. This is very different from buying a completed home that you can walk through and see exactly what you are buying. So here are some things to think about if you are interested in purchasing a home pre-construction.
1. How to Close
You can close at the issuance of the Certificate of Occupancy (CO) or you might close on the land/work in progress and then enter into a construction contract for the remainder of the build. You might strike a beneficial deal with a construction contract, so the developer doesn’t have to continue paying out of pocket for the completion of the project. You might also save on Land Bank fees. This is something you should discuss with your broker.
2. Builder’s Warranty
Most builders will include a one-year builder’s warranty. If a builder is not willing to stand behind their work, it is something you might want to think about. The warranty will either begin at the issuance of the CO or when the Deed transfers. Be sure this is written into your offer.
Blue Flag Partners, Hawthorne Park
3. Building Specs
You want to be sure you know the building specifications, the end product of what you are buying. Make sure there is clear alignment between you as the buyer and the builder/seller. Here are a just a few of the many questions to keep in mind:
• What is the landscape plan and budget?
• What is the lighting plan?
• Are the floor grates wood or metal?
• What brand are all of the appliances and fixtures?
I can go on and on but lock in the details upfront to avoid issues at the end.
Depending on when you are entering this process, you might be able to swap out certain items such as light fixtures, countertop, backsplash, etc. You will want to have an understanding of the allowance for any items that have not yet been ordered or work that is yet to be completed and you can switch out for something you prefer. If what you choose costs more money, you will pay the overage.
Get to know the builder! It is important you have a strong working relationship as you complete this home and work together to do so. Ask for references so you can speak with previous clients.
6. Decisions & Timing
The builder will have a timeline they are targeting and you will play a role in keeping this on track. When it is time for you to make a decision or select a material, it is important to do so in a timely manner or this will start delaying the process and the delivery of your new home.
Buying pre-construction can be complicated but it is also exciting as you have the opportunity to influence the design of the home to make it your own. If you are looking for advice, never hesitate to reach out with questions.
Erin Wilson’s pre-construction sales include: