3 guarantees that can save big bucks on your new home

Ginger Dean

April 14, 2016

By: Ginger Dean, Home Finance Specialist

In: Finance and Legal

Buying a new-construction home has advantages: the materials are brand new, no previous owners have caused any damage, and you can likely choose customizations such as cabinets, floors, and wall colors.

The big downside of buying a newly constructed or pre-construction home?The materials have not yet settled, so it's hard to tell if everything is safe and sound.

When purchasing a new home (either after the construction is completed or prior to the project being finished) it's important to inquire about all guarantees and warranties that come with the structure and materials. If something fails or is not properly installed the malfunction could end up costing you big bucks.

Here are three guarantees that you new home should have:

Long term warranty on the roof

The last thing you want after moving into a new home is a leaky roof. Replacing a roof isn't a quick or cheap job. Not to mention water damage can damage other parts of your home like the walls, electrical wiring, and even your personal belongings.

According to Angie's List the average cost to repair a roof is $12,000, though this depends on the size of the home as well as the materials.

A guarantee for the foundation

It can take one to two years for a foundation to settle, and during that time the structure of your home can change. That means you may not want to install anything into the walls for at least a year after moving in. (You definitely don't want to end up with a big crack after decorating.)

Fixr.com says that the average cost to repair a foundation is $5,000 to $7,000, but it could cost tens of thousands of dollars if major work is needed. That's a large amount of money that most people don't have on hand. Combined with the fact that foundations need to be fixed as soon as possible before they can further damage the structure of your home, you're looking at a huge potential emergency.

Manufactures warranty on appliances

One of the benefits of buying a new home is that it's pretty much turnkey. Home buyers don't have maintenance or repairs to do. Make sure it stays that way.

Buying a new home with a full suite of appliances will only save you money if nothing goes wrong with them or if you've got the warranty for everything in case something does.

New construction homes have a ton going for them. Don't waste money you could be saving instead by paying for major repairs that should be covered under warranty. Get all the info on warranties included before you make an offer. Knowing what's covered and what's not could just be your deciding factor between two homes.

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