Move-up buyers often find themselves looking for their first new home. What an exciting time this is to visit model homes and imagine living surrounded by brand new, beautiful things. Although you've been through the home-buying process before, there are notable differences when purchasing a new home from a builder, so we've compiled this list of frequently asked questions.

We're ready to move up, this time to a new home. How will the process differ?

Usually, when buying a new home, you view the model or sometimes just a floorplan instead of inspecting the actual home. You will have choices such as the color scheme, styles, and layout. The deposit required is higher, and there may be additional deposits required for some options. The likelihood of delays is higher. Everything in your home will be new, and will usually be covered by a warranty.

What questions should I ask when looking for a new home?

- The square footage of finished living space and the lot

- The date the house and landscaping will be finished

- If there is builder-offered special financing

- What options are standard and what is extra

- How much is the required deposit and who will hold it

- Has the builder finished other construction in the general area (so you can contact previous buyers as references)

- Will there be a homeowners' association, and what fees and amenities are included

- What are the estimated taxes

- How long have the homes been for sale and how many have sold

- Have there been price changes since the first homes were offered

- What closing costs will be paid by the builder

What risks are associated with buying a new home?

Be a savvy consumer. Builders sometimes go bankrupt, cut corners either in workmanship or materials, don't complete the house satisfactorily, or cannot deliver on time. Other risks possible with any purchase include losing your deposit and the inability to sell your current home by the delivery date.

What should I consider when choosing a lot?

Ask whether you can get the model you want on the lot you like best. Sometimes overall layout of the neighhborhood or permits dictate which models can be placed where. Ask whether there is some flexibility or the permits can be re-issued.

Find out what easments are on the lot and if you are in a flood zone. Ask where the nearest street lamp and fire hydrant will be located. Find out whether the streets will be publicly or privately owned and who will be responsible for maintaining them. If the landscapers plan to use pesticides, you may want to explore natural methods with them as an alternative course. Investigate the soil type and any problems associated with it. Another important bit of infomation is plans for nearby land. Future development can either increase or decrease the value of your home.

Is a new home a good investment property?

If you are able to take more of a risk on the project and can buy early in a new development, you will usually get a lower price. Builders often start with lower prices to attract buyers and investors. If you can obtain favorable financing, the area has high enough rents to pay the mortgage, and the tax code is favorable, looking for investment property may be a good move.

What is negotiable when buying a new home?

Many things are negotiable, including price, cost of options, modifications not offered, financing and points, delivery and closing dates, warranties, terms in contract, deposit amount and who holds it, and the time period for builder to respond to walk-through requests.

What specifically should we look for during the walk-through?

- Check for all standard and upgrade items; check appliance labels to be sure you got what your ordered, and see if everything works

- See if the color scheme you ordered was delivered

- Test outlets and switches

- See if weather stripping and caulk are adequate, i.e., check for light gaps around doors and windows

- Look for nail pops, common in ceilings

- Pay attention for unusual odors or sounds, especially a gas leak or squeaky floors

- Look over everything for scrapes, cuts and dents