Buyer Resources
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Opting for new home construction
Whether you decide to buy an existing home or have one built, it's just another decision to make during
the home-buying process. Just remember, that if you decide to go with new construction, a real estate
agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other
terms with the builder.
Below are some basic pointers to prepare you for the journey ahead.
Selecting a builder
Shopping for a large production or custom home builder can be a daunting task. Start by defining what
architectural styles appeal to you and then seek out the builders in your area who offer those styles.
Due diligence is essential. Ask friends for referrals to get firsthand accounts; verify the builder’s state
license
The builder representative and your real estate agent
A builder representative’s ultimate goal is to sell you a home. His or her role is to provide a wide range
of information to help you in your decision-making, from building restrictions, roads and easements to
inspections, warranties, rebates and upgrades. A real estate agent knowledgeable in new-home
construction will be able to help you wade through all the data and point out the downsides and
upsides of each line item. Your agent also can look out for your interests in reviewing the builder’s
contract, which often contains more legal jargon than consumer-friendly language.
It’s all about timing
Market conditions greatly dictate a builder’s incentive to make a deal you cannot refuse. When a builder
has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be
more amenable to strike a favorable deal, whether it’s throwing in upgrades or taking a bit off the
asking price. A real estate agent can help you know when market conditions are right for these
benefits. Also, watch for builder close-out sales. Builders promote these special events when a new
subdivision is near completion but empty inventory still remains.
A word about paying up
While there are always exceptions, most builders require a deposit when a purchase agreement is
signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to
closing, unless the agreement states otherwise, you will lose that money. Make sure you understand
every detail in the builder’s contract before signing it.
Whether you decide to buy an existing home or have one built, it's just another decision to make during
the home-buying process. Just remember, that if you decide to go with new construction, a real estate
agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other
terms with the builder.
Below are some basic pointers to prepare you for the journey ahead.
Selecting a builder
Shopping for a large production or custom home builder can be a daunting task. Start by defining what
architectural styles appeal to you and then seek out the builders in your area who offer those styles.
Due diligence is essential. Ask friends for referrals to get firsthand accounts; verify the builder’s state
license
The builder representative and your real estate agent
A builder representative’s ultimate goal is to sell you a home. His or her role is to provide a wide range
of information to help you in your decision-making, from building restrictions, roads and easements to
inspections, warranties, rebates and upgrades. A real estate agent knowledgeable in new-home
construction will be able to help you wade through all the data and point out the downsides and
upsides of each line item. Your agent also can look out for your interests in reviewing the builder’s
contract, which often contains more legal jargon than consumer-friendly language.
It’s all about timing
Market conditions greatly dictate a builder’s incentive to make a deal you cannot refuse. When a builder
has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be
more amenable to strike a favorable deal, whether it’s throwing in upgrades or taking a bit off the
asking price. A real estate agent can help you know when market conditions are right for these
benefits. Also, watch for builder close-out sales. Builders promote these special events when a new
subdivision is near completion but empty inventory still remains.
A word about paying up
While there are always exceptions, most builders require a deposit when a purchase agreement is
signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to
closing, unless the agreement states otherwise, you will lose that money. Make sure you understand
every detail in the builder’s contract before signing it.
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All rights reserved. (2008-2010)
All rights reserved. (2008-2010)
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