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2017-02-27 23:22:10
3 Things to Know about Buying New Construction

You may be dreaming of living in a home that no one has lived in.  It is the ultimate 'fresh start in a new home with a fresh new smell'.

Sure, there are other reasons to purchase a newly constructed home rather than an existing one but

Here is what you should know BEFORE you visit a New Home Community.

The New Home Salesperson

New home communities are typically laid out so that visitors are herded into the builder’s office  as known as a 'model home'.  The person that greets you here is usually the Builder’s Salesperson. The Builder's Salesperson is working for the benefit of the Builder only.  This person will be charming, nice looking, full of wit and charm, but this person is only concerned with the sale for the Builder.   

The best way to avoid the temptation and any pressure the Salesperson may try to place on you is to mention that you’re working with a REALTOR. The Salesperson should back off trying to recruit you as a client.

The builder pays the real estate commissions so there is no reason not to have your own representation during the purchase process and many reasons to have it. Real estate agents have what are known as “fiduciary” duties to their clients. Legally a REALTOR is suppose to put the needs of our clients above our own.  The Builder Salesperson has a job duty to get the best deal for their boss.  The duties for the buyer’s agent are different from those of the seller and believe us, they do conflict.

The Lender

The builder may also have a preferred lender and you will no doubt be urged to use it to finance the purchase. Unlike the Salesperson, there is nothing inherently wrong with using the builder’s lender, as long as you’re being offered a good deal.

The advantages to using the builder’s lender include the fact that it may have appraisers who are familiar with the new community.

Never feel that you have to use the builder’s in-house lender; you are within your rights to use any lender you prefer.  

The Builder

As in most professions, there are good builders and there are those that take short cuts.

If you aren’t familiar with the builder, do some checking on their background. Start with the Better Business Bureau in your area and then check public records for lawsuits against the builder.

There is a lot more to buying a newly-constructed home than an existing home. Carefully choosing your REALTOR and then investigating the builder will go a long way to helping the transaction run smoothly.

We have represented families that purchase new construction on many occasions.  Each home had unique challenges during the construction and the Builders were saying they can not do anything for the Buyers.  We were able to help solve the issue and both the Builder and Buyer were happy again. 

 
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2017-02-27 23:22:10
3 Things to Know about Buying New Construction


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