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New construction: Things to think about

Being in New Construction for over 10 years and watching the market change, buyers need to know what their doing! I always tell my buyers, nothing is for free. If the prices and offers are hard to believe, why? Are they comprimising quality construction you can't see? Educate yourself to know how a home is made so you know what to ask. For example, framing and sub floor materials, insulation quality. There are big differences between builders. Do they pay the transfer tax? You don't want a big cost surprise at closing. What about assestments they pass on to you? In this market there are huge deals to be made. Know your builder! Are they financially stable when you are handing over that check? Did you know there are ways to find out? What about a construction loan? There are tax benefits and a piece of mind with security. Protect your client and know all the facts in this market. Too many builders are closing their doors. There a great deals out there but be careful!!

Posted by Janet McAllister on 06/15/2007 07:49 AM

Comments (4)

4 Comments on New construction: Things to think about

JUN

2007

You're on my favorite subject, selling new homes. I love selling new homes. I don't make the mistake of second guessing the builder, that's the municipal code inspector's job. However, I do know the better quality builders in my geographical area and can tell my buyers the difference.

New home builders in our area are leading sales.

Janet,

Great advice! I would like to take your idea and go a little further.

I am a home inspector and see first hand how many new homes are constructed these days. It is a production, let's get done, mentality with contractors now. Quality is often not a consideration. New home buyers are often starry eyed and thinking its a new home, there couldn't be anything wrong. Besides I have a one year builders warranty.

In Connecticut where I do inspections home builders and contractors are not licensed. They simply pay an annual fee to the State to register their contracting business. Unlike a license this system puts no real accountability on the individual company owner. If he gets into trouble, he folds the business and starts a new one under a new name. The contractor is not tracked individually as with a licensee.

My company conducts new construction progress inspections. This service is almost impossible to sell to new home buyers. One reason being they believe the home is being inspected by the local municipality. Not say this isn't true, but what a building official does and what we do are quite different.

I believe you are right on the money with new construction home buyers educating themselves. I of course believe hiring an outside inspector is a great idea that will pay for itself. No matter how educated the buyers are, there is no substitute for an experienced, knowledgeable professional.

Jim

I caution my buyers that you get what you pay for so please check out the builder, do be affaird to ask for feferences or to veiw some of the builder recent. Also they want to make sure to have a good Realtor looking out for there best intrest and make sure evey detail no matter how small is spelled out in the contract. As far as a home inspection I tell clients these house are built by people with hammer and nails and no one is perfect so please pertect your investment get a home inspection

I agree. Always best to be safe. An outside home inspection is protecting the largest investment you make. Warrantys with builders are not always the end all. I thin we as realtors know who services and who doesn't. Thanks for everyone's feedback!

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