Home buyers' Guide to
READ THIS BEFORE YOU VISIT YOUR FIRST MODEL
When shopping for your home, you'll discover
that most homes on the market are resale
homes. Yet, one out of 7 home buyers
purchase a new home. Both new and resale
homes offer advantages. Before you make
your decision, let's. . .
As you can see, there are advantages to both. Most people consider both new and
existing homes before they decide to purchase. Should you be thinking about
buying a new house, here are 10 points to consider before you visit your first model
1. Get in Touch with Your Agent
Before you visit your first model home, sit down with your agent and do your
homework. You'll want to be prepared so that you can determine a comfortable
price range for your new home.
2. Sellers' Agents Versus Buyers' Agents
Here's a good point to remember. The sales agent in the model home represents
the builder, not you. They are known as sellers' agents. As a home buyer you can
work with a buyer's agent from our team at no additional cost. It's our business to
best represent your needs by being knowledgeable about home construction,
warranties, financing, differences in pricing, quality, even lot selection so you get the
best value for your money.
3. A Builder for All Reasons.
Like all tradesmen, builders vary in their fields of expertise. For example there are
builders who specialize in craftsmanship, others who are known for their innovative
use of space, and those who offer below-market financing or customer attention
during construction and after move-in. Determine your own specific needs or
preferences then shop around for the area builder who will best address your
4. Get the Facts About Your Builder
Before making a final decision, it is wise to check out the reputation and financial
strength of the builder. Get "spec sheets" on home features covering everything
from floor plans to energy efficiency, including lot availability and delivery of your
5. Check Out the Neighborhood
- Learn as much as you can about the community.
- Discover what amenities it has to offer
- Investigate if financial reserves have been set aside to build or replace major
amenities like schools or community roads.
- Find out from local land-use officials what else is planned or could be constructed
in the area.
- Review the rules for the home owner's association, or find out if one will be set up.
- Think of how you will be affected by commuting routes and times.
6. Choosing Options and Upgrades
The lower the base price of the house, the more options and upgrades you can add
without fear of overpricing it for the neighborhood. Options are items the builder
installs during construction, such as adding usable space (sunroom or powder
room.) These features can add the most to resale value of your home. Upgrading
means selecting quality above "builder standard" such as ceramic, detailing or
fixtures and appliances. Be sure to take of builder incentives that offer free
upgrades or credit off the sale price.
Remember you can add a deck or finish the basement later in need be and often for
Often buyers don't realize that there may be room for negotiating price, upgrades or options. For instance, you have some scope for
negotiating with the builder even if they have a completed home but haven't sold it yet. Also some "premium lots" are priced higher and are
sometimes saved to be sold last. Keep in mind that typically, all lots cost the builder the same, so be sure to enquire about lot pricing.
Builders may offer discounts or special financing to help close a sale.
8. Be Sure the Contract Works in Your Favor!!!
When spelling out the particulars of an agreement such as:
- placing your deposit in escrow
- detailing your upgrades
- allowing you access to the construction site to check on progress
- a 30 day advance notice of the closing date.
- an explanation of what the fine print means in the warranties of the builder and manufacturer.
9. Financing - What's Best for You?
Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages. However,
because "home loan" lending is highly competitive, you have many financing choices other than those being offered by the builder. Ship
around for everything, from rates to lender fees. Appraisals, inspections, surveys, attorneys and closing fees can vary as well.
Last but certainly not least!!!
10. Just Because it's New.....
-- Doesn't Mean it's Perfect.
Yes it's new and typically it's built with modern materials that are durable, low maintenance, stronger, quieter, and safer. But because nothing
is perfect, even if it's new, consider hiring a reputable, licensed home inspector. Then create a builder "punch list," from what you've learned
to address any problems before closing. Consider budgeting for items to be modified or added later on.
Many new home buyers use us as buyers' agents to help negotiate the best price and terms with the builder.
Here's a fact that you may not be
aware of. Some builders have
newly-constructed homes available
for immediate delivery. Usually
these homes are ready to move into
within 30 days. Even if some
builders are eager to sell, they'll
probably keep that knowledge to
Immediate delivery homes are
often available for various
- the community, where new homes
are being constructed is nearly
complete, so the builder proceeds
to have the on-site-contractors build
"spec" homes (homes built on
speculation for sale) on the last lots;
- the model home is for sale;
- the contract on a home has fallen
- builders include constructing
homes for immediate delivery for
buyers who are relocating or who
have sold their previous home and
need one to move into quickly.
Immediate delivery homes may be
more desirable because, sometimes
builders offer financing incentives or
free options. This may be done in
place of chopping prices to appeal
to buyers purchasing later in the
An immediate delivery home is an
advantageous way to purchase a
home if you need to move in
quickly, or need a physical space to
walk through and see before you
sign a contract. Be sure to enquire.
Buyer Advantages Your
Builder May Not Reveal!
|Ten tips to Save You Time and Money