Your Step-by-Step Guide to Buying a New Construction Knoxville TN Home

Saad Iqbal | 🗓️Modified: September 22, 2023 | ⏳Read Time: 9 min | 👁Post Views: 51

If you are in Knoxville, Tennessee real estate market looking for the perfect home but just could not find it, then you should consider looking for newly built houses instead. Doing so will allow you to customize the property to fit your tastes, needs, and preferences.

However, buying new construction Knoxville TN homes is not as easy as it sounds. Beyond looking at the floor plans and viewing the models, there are a lot of details that you need to consider.

Luckily, we’re here to help! In this article, we’ll provide you with a step-by-step guide to finding and buying these properties. We’ll also give you some tips on how to make the entire home-buying process hassle-free and get the best deal possible. So, let’s get right into it!

Link: https://www.pexels.com/photo/brown-and-white-wooden-house-164558/

Steps to Purchasing New Build Homes in Knoxville

Buying new construction homes is virtually the same as purchasing a pre-owned property. However, there are particular aspects that make this process a bit different. Here are the steps that you should follow when buying new build homes in Knoxville.

Step 1: Know the Types of New Construction Homes in Knoxville

Before you start your search, you need to understand what types of new construction homes are available in the city. The categories are the following.

Custom

Buying custom homes allows you to choose the lot, layout, floor plan, fixtures, cabinets, tiles, and other details. This is the perfect option if you want a house that is tailored to your needs and preferences. This means that you should work with Knoxville new home builders from the beginning so that they can create a house according to your vision.

Semi-Custom

For semi-custom homes, you can choose a few details but not as much as with custom homes. For example, you may choose an already-designed floor plan and then decide which fixtures, tiles, and cabinets you want. 

Speculative

Spec homes are constructed by builders on the speculation that they can easily sell them for a profit. They’re ready to move in, and you can find many of them in developing neighborhoods.

Apart from these categories, you should also decide whether you want Knoxville new condos for sale or landed properties. Each has its own set of pros and cons, so do your research and choose the one that best suits your needs and lifestyle.

Step 2: Research Neighborhoods

Once you have decided on the type of property that you want to buy, it’s time to research neighborhoods where new construction houses Knoxville has today are located. During this step, you should consider factors, such as the quality of public schools, proximity to amenities and employment opportunities, crime rate, access to public transportation, noise level of the neighborhood, and availability of recreational activities.

Check neighborhoods thoroughly so that you know what you are getting into. You can read local newspapers and websites for information about the area. You can also take a drive around and talk to the neighbors. This is a good opportunity to get a feel of the community.

Step 3: Get Pre-Approved for a Mortgage

Getting yourself pre-approved for a mortgage will make it easier for you to know how much you can truly afford for the purchase and establish a budget. Shop around different lenders and compare their rates, fees, and terms.

Getting pre-approved will also give you a huge advantage in negotiations. In a way, it shows sellers that you are serious and that you can financially back your offer.

Types of Mortgages That You Can Use for New Construction Homes

There are different types of mortgages that you can take out for a new build. Here are the most popular ones that you can use.

Conventional Home Loan

Conventional mortgages are not insured by the government. They come with fixed or adjustable interest rates and repayment terms of up to 30 years. Typically, the down payment requirement for conventional home loans is 20% of the purchase price, but you can find those with as low as 3% depending on the lender.

Jumbo Loan

This type of loan is ideal for purchasing luxury new homes Knoxville has today because the loan amount is higher than the conforming loan limit set by Fannie Mae and Freddie Mac. However, the requirements for jumbo loans tend to be stricter, and the interest rates might be higher. You’ll also need to pay a larger down payment compared to conventional home loans.

Government-Backed Loan

For those who qualify, this is the best financing option. Government-backed loans provide lower down payment requirements and higher debt-to-income (DTI) ratios compared to conventional mortgages. The most popular options are the VA loan for veterans, FHA loan for first-time homebuyers, and USDA loans for low-income households.

Is an Appraisal Needed for New Builds?

The answer to this question depends on the type of loan that you’re taking out. If you’re using a conventional mortgage, then an appraisal is required. However, if you have other financing options such as FHA or USDA loans, then the appraiser might do what is called a “desk review” instead of visiting the property in person. This assessment allows them to estimate the worth of the house based on public records, similar homes in the area, and other data.

Step 4: Determine Your Timeline

If you’re opting for a custom or semi-custom home, you’ll need to determine your timeline. This covers the preparation of the lot, the construction period, and other related steps. Knowing this information helps you decide if you should choose an existing spec home or wait for a custom one to be built.

Step 5: Hire a Real Estate Agent

A local real estate agent who knows the market very well will help make the process of buying new construction Knoxville TN homes a lot easier and faster. These professionals will help you find the best properties available on the market, negotiate better deals, and provide insights that you wouldn’t know otherwise. They can also provide helpful information about developing neighborhoods and any issues or trends in these areas that might affect your decision.

Be sure to hire an agent who is knowledgeable about new construction homes in and around the city. Ask for their certifications and experience in handling transactions. You should also ask about any specialties they may have, such as working with certain builders or types of properties.

Step 6: Inspect the Property

If you’re buying a move-in-ready home, make sure to inspect it with your real estate agent. Ask the builder to provide a list of all the features and upgrades and inquire about any warranties or guarantees that come with the property.

For a custom home, you should inspect it during different stages of construction. This will allow you to spot problems early on and make sure that the builder is adhering to your specifications.

Step 7: Negotiate

Price negotiation is a very important part of the home-buying process, especially when it comes to new construction Knoxville TN houses. You should have your real estate agent review the contract and all the documents associated with the purchase. These include the purchase price, closing costs, special features, and other terms.

Step 8: Finalize the Transaction

Once the negotiation is done, you’ll need to finalize the transaction and sign the closing documents. Make sure that all of the paperwork is accurate and in order before signing.

After this step, the builder will start preparing for a closing date, which marks the completion of your purchase. Congratulations on buying your new home!

When Is the Best Time to Buy New Construction Houses Knoxville Has Today?

a couple checking new build homes in Knoxville

Link: https://www.pexels.com/photo/people-looking-at-the-house-7937731/

The best time to find affordable new construction in Knoxville without sacrificing quality is typically during the end of winter and early spring season. This is when most builders are offering promotional discounts, incentives, and other deals that help buyers save a lot on their purchases. Plus, the weather is also ideal for construction during this period.

However, it’s still important to shop around and compare different homes before making a decision. With proper information on when to buy a house, you can make sure that you get the best house for your budget.

Quick Tips on Making a Newly Built Home Scream “YOU”

Once you have bought your new home, you’ll want to make it feel more like your own. Here are some quick tips that can help you turn your newly built Knoxville TN home into a space that truly reflects your style and personality.

  • Use wallpapers and decorative lighting to create an interesting visual impact.
  • Add furniture pieces, artwork, and rugs that match your style.
  • Put plants and flowers in different rooms to add life and color to the space.
  • Invest in quality accessories that can really make your home feel warm and inviting.
  • Create a functional layout for each room, so that it’s easier for you to move around and use the space efficiently.

When it comes to designing your space, the sky is the limit. So, enjoy the experience and have fun!

Start Searching for New Construction Homes in Knoxville Now!

With this guide, buying new construction Knoxville TN homes should be easier for you. Take your time to do your research and find out what works best for your needs and budget. Remember—the house of your dreams is just a few steps away. So, don’t waste any time and get started now!

If you need more information that you can use in buying a home, feel free to check out our other posts!

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