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Part II of Buyer Beware When Buying From Builders

By
Real Estate Agent with Keller Williams Realty

Interesting what happens to the building industry when the market shifts and the builders are in trouble with overstock of inventory homes.  All of a sudden, they are out supporting the realtors and encouraging us to bring all of our clients in to view their homes.

Even though there are alot of builders out there, many have let their homes go into foreclosure.  Sad as it seems, because I do not wish that on anyone, had the builders not inflated the prices beyond appraisal prices, would there be so many foreclosures?

Still, there are some, and I repeat only some, that still are doing a number on people.  Safeguard yourself by doing just a few things that all make commonsense.

1.  Do not give upfront money to the builder unless specified in the contract where that money will be applied.

2.  Enter into a contract and make sure all your requests are put in special revisions or a separate addendum.

3.  Never make deals with the builder on non-refundable monies.

4.  Request specific timeframe the completion of your home, barring bad weather, the builder should keep you on schedule with your closing and move-in.

5.  Have good communication with your builder.  Call regularly to find out what is happening.

6.  Keep notes and dates that you spoke to your builder.

7.  Never do anything verbally.  All requests and changes need to be in writing.

Still confused, not sure what to do?  Here is the biggest tip I can give anyone... 

Enter into a Buyer Representation Agreement with a full-time realtor who has experience working with builders. 

They will guide you and help protect you against the not-so-ethical people in this world.

 

Would love to hear some stories, comments, etc about your experiences.

 

Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Lynn, keeping notes when meeting with a builder is a great idea.

Oct 21, 2014 10:07 AM