Avoid New Construction Pitfalls

Dated: 12/29/2017

Views: 248

There are so many wonderful perks to purchasing new construction! Especially in our area with very few listings to choose from. Starting from scratch makes it possible to have it all! However, it is prudent to proceed with caution.


BUILDER'S AGENT DO NOT REPRESENT YOUR INTERESTS


It may seem easy enough to pop by a builder's office, and talk to the onsite agent. But at the end of the day, they are paid to help their employer make a profit. Be aware, however ethical, kind and fair the builder's agent is -- they cannot represent your best interest.


Buyer's agents are on your team, and will help you avoid unnecessary stress and potentially costly mistakes. Also, we are free to use! Builders nearly always offer the commission to buyers agents in order to attract clients! 
 



1. HIRING THE RIGHT BUILDER AT THE RIGHT PRICE

A buyer's agent will help you find a builder with a great reputation, quality builds, at the right price. Normally, the process begins with researching layouts and receiving multiple quotes. Some builders will leverage upgrades in lieu of the competition. Negotiation begins at the first point of contact. A professional at your side will help you play your cards right to get the best deal.
 

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2. THE RIGHT LOT IN THE RIGHT NEIGHBORHOOD

With access to the mls and staying up to date with local developments, we will find the perfect lot & neighborhood for your new home! We'll help you avoid ruining your expensive sunset views with the newest strip mall or factory.
3. UPGRADES AND PLAN MODIFICATIONS

Negotiation continues through much of the home building process. If either party would like to modify the contract, it is imperative those modifications are in writing and crystal clear. Also, we are happy to point out what may just be a trend, and what finishes will maintain your home's value for years to come.
4. HANDLING CONTRACTS AND PAPERWORK

Building a new home is even less straightforward than buying one! Have someone on your team to analyze and explain the contracts you sign. Lenders will be sending disclosures, closings will  be arranged, escrows and upgrades -- it is a lot to manage! Don't get yourself into hot water by misunderstanding contractual terms or missing items. 

For example, your new subdivision requires grass to begin growing 3 months following your move in date. Is your builder providing topsoil and grading? What about seed? Are they paving the driveway? "What about x" is not a question to ask after signing.
So, what is next?
Talk to your trusted buyer agent today and start setting goals and collecting quotes! Builders offer agents compensation -- we are free to use!

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