Tips for Buying New Construction

A friend recently said, "Dianne, why would I need a Realtor® on a new-construction home, when I can save money going directly through the builder's rep?" This couldn't be further from the truth!

• Use a Realtor® Who Has NewHome Sales Experience

New homebuilders have on-site agents who only represent THEM. They typically offer attractive incentive packages of you agree (in writing), to use their lender, their title company, and sometimes even their insurance company.

A Realtor® who represents YOU, will walk you through the transaction, and will make sure that you are protected every step of the way. Your agent will know what the industry standards are, and will make sure that the builder doesn’t try to stretch beyond these. And best of all, a Realtor® with several new home transactions under their belt will have established relationships with your homebuilder. Because of this, the homebuilder will be on their “best behavior.” The homebuilder does not want to run the risk of getting a bad reputation in the real estate community.

• Don’t Sign ANYTHING Until You’ve Worked Out Every Detail of the Sale

Buying a home can be very emotional, and you want to carefully select the right home and location for you and your family. However, many on-site sales agents will try to get you to “write up the contract so that no one else can get your house.” That’s fine, so long as you understand what you are signing, and to be enforceable by law, everything in real estate needs to be in writing. Don’t take “verbal promises.”

• GET A HOME INSPECTION!

Most people who buy new construction homes don’t bother to get their own home inspection, since many builders offer a 12-month warranty. The problem with this mindset is that many problems won’t surface until well after the firs 12 months. Remember, your home was built by humans, and humans make mistakes.

At the very least, get a home inspection so that you can sleep soundly at night, knowing that an independent third party has given your new home their stamp of approval.

• Ask your Realtor® for a List of Reputable Lenders

Production builders are now large corporations, many of them traded publicly. The corporations have realized that there is much more money to be made than simply selling you your new home – they’ll also try to sell you a loan. Be sure to ask your Realtor® for a list of reputable lenders, so that you can compare rates and services, and not be bound by the builder’s lender.