Investing in new homes compared to existing ones is an oft-overlooked option. It really doesn’t matter if the real estate is brand new or 30 years old, if the math works it should be examined as a potential acquisition. You can decide to build on your own with your own plans and specs and along withbuying from a developer your builder complete the project over the next several months.

Or, you can visit a new development and speak with the sales person there about buying an investment property. What can you expect when you buy from a developer in a new subdivision?

When you visit the new community, you’ll probably see a few completed homes but a lot of new lots being cleared, foundations poured and carpenters framing up new properties. By visiting the sales office, you’ll meet with the sales agent who will provide a list of floor plans from which to choose. And make sure you take your real estate agent when you first meet with the builder’s sales agent. Your agent can negotiate for you and most builders today encourage agents to bring prospective buyers to their development.

One of the first things you will be asked is whether or not you’ve already been preapproved for a mortgage. This is no different when buying an existing property, the sellers want to know they’re about to negotiate with a qualified party.

After picking out your floor plans you’ll next start with your upgrades. This is where the builder’s make much of their profits, by providing a list of tempting upgrades that, for just a few hundred dollars more, will really make that kitchen shine or brighten up the living room. The sales agents work on commission too and the higher they can get the sales price then the more they’ll make on your transaction. Once you’ve figured out the final price and ultimate amenities, the builder will take a down payment from you and the work will begin.