Buying a new home is one of the most exciting experiences life has to offer, especially when you are the one who built it! From your dream kitchen to an extra garage, you can have just about anything your heart desires when building a house from the ground up. But with all the options to choose from, it can be easy to overlook important elements that if not taken into consideration, could really cost you both time and money in the long run. Here, we outline the top mistakes people make when buying a new home.

1. Choosing too many upgrades or choosing upgrades with low return on investment: This is probably the single most common mistakes people make when buying a new home. As they build their home, people tend to spend money on upgrades that will give them little to no ROI or they will choose too many upgrades that will only mean more money and won’t increase the value of the home. When buying a home, stick to essential upgrades only.

2. Not evaluating the surrounding community: When buying a new home you are shopping differently than if you were shopping for clothes or even a new car. Finding the right place to buy a new home means assessing your lifestyle requirements in order to find the right community. For example, it’s important to research the schools in the area to determine if they will be a good fit for your children.

3. Neglecting the “inspection” clause found in some builder contracts: One of the dirty little secrets in the new home industry is that some builders, including some national builders, send out contracts that contain a clause stating that they will not allow home inspections by an independent, third party home inspector until after you close on the home. Though these builders will often offer to do a walk-through of the home with you before you close, unless you have a licensed home inspector do a walk-through, chances are you will miss some important red flags

4. Not using a buyer agent: When buying a new home, make sure you find a buyer agent who specializes in new homes. With all the steps that come along with buying a new home, it’s important to have a buyer agent that can help with price negotiation, choice of lot, assessing the pros and cons of building materials and researching future development in the surrounding community. Lucky for those who are interested in buying a new home in the near future, buyer agents services are now paid for with of the marketing budget of the builder.

5. Using the builder-endorsed financing company because it’s convenient: Many of the larger building companies have their own in-house financing company and often make incentives on their products available to buyers. Though it may be more convenient to take advantage of this simple financing, you might find that the builder’s in-house lender financing and incentives will cost more money in the long run. Sometimes financing your purchase through an outside lender will save you money, so it’s important to check your financing options before settling with an in-house finance company.