How To Buy A New Home From A Builder / Developer

Buying a new construction home or condo can be a little like buying a new car. The onsite agent generally works for and/or represents the builder even if she/he seems all too glad to represent you, as well.

Many buyers don’t realize that they can have a buyer’s agent help them with new home viewing and purchase and at no cost to them. I suggest that you not even set foot into a new home sales office without bringing your buyer’s agent with you. Some builders will not allow your agent to represent you if you arrive on your first visit to the community without your agent.

Compare Other Sales In The Community

Having your own buyer’s agent adds a layer of objectivity to your new home experience. Top buyer’s agents will likely be able to offer additional information about each new home community that interests you that many onsite agents won’t share. And if the builder does not list homes in the MLS, your agent can use the local tax roles and title company information to discover what prices other buyers have paid for nearby homes. Keep in mind that the advertised sale or brochure price often times can be negotiated.

If Financing, Consider Using Your Own Lender

Many builders prefer guiding buyers to their own lender. A better move if you are going to finance the purchase is to get pre-qualified for your mortgage in advance. A pre-qualified buyer can act quickly when a great opportunity is discovered. Pre-qualified buyers have the advantage of getting to shop for the best loan rates and terms in advance and without pressure to find a mortgage quickly.

Hire A Home Inspector

Top buyer’s agents will suggest you hire a home inspector prior to closing on a new home. New homes could have minor construction defects and a qualified and licensed home inspector can help protect you from hassles down the road. An investment of a few hundred dollars prior to buying can save thousands years later, or in rare cases you may discover that the quality of construction is not acceptable. A home inspector will provide you and the builder with a written report including photos of any potential issues.

New Home Standards and Options

Most model homes are optioned to the max. You’ll want to have a written list of what’s included in the offered price of the home you like. When you choose your options have the builder total them on a spreadsheet so you see the final selling price. By using a spreadsheet listing your options you can easily add or delete any options that don’t fit your budget

Community or HOA Regulations

During your escrow period your builder must provide you with a copy of the community CC&R’s (codes, covenants and restrictions). The community CC&R’s will tell you what you can and can’t do within your community. As an example, the community may or may not allow short-term rentals or restrict RV’s or commercial vehicles from parking in the driveway overnight.

Summary

Busy and successful buyer’s agents develop extensive experience in working with onsite sales offices. They generally know which onsite agents can help to provide their clients with the highest level of buyer satisfaction.

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