The Lure of Shiny New Construction...'Careful what you Catch !

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker
http://activerain.com/droplet/5cjh

     A walk thru a model with gleaming hardwood floors, shiny new appliances, mega kitchen islands, dramatic chandeliers, media rooms and kitchens on the lower level, a deck here, a patio there...beautiful blooming landscaping ...picture perfect and ready to call home....maybe.

   New construction   If you are looking at or showing new construction as an agent you need to have a thorough understanding of what is included and what is not...or may be an upgrae and is not included is the "base price" listed...the lot may not be either !

      New Constructon is a  HUGE BUYER BEWARE...if this is Buyer Bewaresomething you are considering as a buyer...you will need the expert guidance of a Buyer's agent who knows and understands, and has had successful experience with new construction. This is an area of real estate for an agent that if you don't know what you don't know...you need to learn or refer the Buyer to someone who does know or you could lead a buyer to some new lawnvery expensive mistakes. You may assume that.... the hardscaping...that is sidewalk, driveway,  stamped concrete patio are included...the lawn, the landscaping...that sprinkler system and the lamp post ...the "exterior frosting" are included...you may well be very, very wrong. You may learn that not only are none of THOSE things included...the lot will not have a fiinish grade and there will be the added expense of adding what could be tons of top soil, seeding or soddng the lawn, landscaping, masontry work etc...is NOT included in what is shown as the "base price" of the home.. and adds considerably to the cost of the house. And...did you know that the subdivision you have chosen requires that the lawn and hardscaping be done within X period of time from when you take occupancy ?    You will want to research the restrictions for a timetable that is a requirement.

       Moving to the interior ...it MAY be that all the light fixtures, plumbing fixtures and floorichandelierng have been upgraded and the allowance that is included in the price would not begin to cover the upgrades.  That walk in shower...the shiny chandelier that will "light up your life" are available...but not included n the base price.  

      Does the house come with an "appliance package" ?  Maybe and maybe not...not likely to be the Viking cooktop and Sub Zero fridge that you see in the model. What IS that package...what is the brand, the features of the appliances you will use every day...good to know before you dccide new construction is what you want to choose for your next home.

   Soooo many questions...that as a first time buyer of new construction...or an inexperienced agents...you don't know what you don't know...and assumptions are sooo easy to make when the excitement of new construction is clouding the logic of your budget.

     Our advice is ALWAYS hire a Buyer's agent who is experienced in new construction....it costs no more....and can save you a Bundle !  In southeastern Wisconsin, you may call Sally K. & David L. Hanson, broker associates with Keller Williams...and know you can have confidence in their successful experience to guide you thru the process.

 

  

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 05/14/2018 11:00 PM
  2. Gita Bantwal 05/26/2018 08:34 AM
Topic:
Home Buying
Tags:
new construction
buying new construction
use a buyers agent with new construction

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Rainmaker
1,467,887
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Congratulations on your well deserved feature. I love writing about new home construction and this is a great look at the issues that buyers never knew to ask

May 08, 2018 04:26 AM #23
Rainmaker
303,042
Gary & Melynda Wolter (CRS) 480-269-1164
West USA Realty - Mesa, AZ
Relentless, Reliable, Premiere Personal Service

Great advice! 40% of new homes in our area are purchased with out an agent! Scary!

May 08, 2018 04:32 AM #24
Rainmaker
3,389,632
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Sally K. & David L. Hanson ,

Great post..congratulations on the feature. Excellent advice to buyers thinking of new construction. Having a buyer's agent is a real plus..in Austin 80% of new construction is handled through agent representation. The builders court agents and offer many classes on the process..a buyer is really foolish not to have representation some feel they can negotiate better and take off the commission. The commission is in a different builder budget and an agent will always get their buyer a better deal! They are bringing buyers all year long its not just a 1 shot deal.

May 08, 2018 04:51 AM #25
Rainmaker
928,361
Corinne Guest, REALTOR
Barrington Realty Company - Barrington, IL
Barrington, a Luxury, Country Suburban Lifestyle.

Different animal as they say, love this post. I have built a house in my town, well village, 4100 people, so I know all the village rules. Just picked up a job with a builder to represent 5 custom homes! I am stoked and it helped I sold one of his to a custom home buyer in a neighbor village first. 

May 08, 2018 06:12 AM #26
Ambassador
2,436,278
Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

I had buyers for a patio home a couple of years ago, and the community had a mandated mail box & post.  Included in the price?  Nope.  My gift to my buyers, not going to let something as asinine as a mail box not being included spoil the feel good buzz they had.

May 08, 2018 06:31 AM #27
Rainmaker
66,369
Alesha A. Wilson, M.Ed., MRP
525 Realty Group - Edmond, OK
Buy and Sell with Confidence

Good morning Sally and David   Congratulations on the Feature!  You brought up so many great points to purchasing a new construction (with the help of an experienced agent).
One of my buyers is currently under contract for their new construction and they thank me often for my attention to details.  As the home approaches completion, I will be sharing examples of how a home inspection can be valuable too - yes, even on new construction (:

May 08, 2018 07:40 AM #28
Rainmaker
1,367,426
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Sally K. & David L. Hanson, excellent advice to all buyers who are considering new construction. Many think they're getting a "better" deal without a buyer's agent but it's the opposite. Congratulations on the feature!

May 08, 2018 07:50 AM #29
Rainer
17,908
Andrea Moore
The Mortgage Market of Delaware - Lewes, DE

They also need to steer clear of their "in house lender" and those "free upgrades" if you use that lender. They usually come with higher fees and higher interest rates to cover those upgrades. The buyer also needs to choose their own attorney/title company (not the builders) so they have their own representation.

May 08, 2018 08:16 AM #30
Rainmaker
786,172
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Some first time home buyers also think that just because the house is brand new that they don't need a home inspection. Thanks for sharing. Great post.

May 08, 2018 08:37 AM #31
Rainer
137,864
Jim Harper
Atlanta Communities Real Estate - Marietta, GA

Amen and Hallelujah! Thank you for this post Sally K. & David L. Hanson. And the reference to "Areas of Expertise." It touches a lot of parts of our industry.

May 08, 2018 06:24 PM #32
Ambassador
2,486,521
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

AMEN, AMEN is all I have to say!

Well, and the builders with integrity are few and far between and it's ALWAYS best to have your own representative when buying new construction!

Great post, Sally!

May 08, 2018 09:52 PM #33
Rainer
414,598
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great blog about what to watch for in new construction!!!

If you are looking at or showing new construction as an agent you need to have a thorough understanding of what is included and what is not...or may be an upgrae and is not included is the "base price" listed...the lot may not be either !

May 09, 2018 04:02 AM #34
Rainmaker
2,260,118
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

New construction uses an hypnosis where you are dazzled into wanting to buy

May 09, 2018 07:04 AM #35
Rainmaker
199,103
Dora Griffin
D A Griffin Financial.LLC - Fort Thomas, KY
NMLS 6380

As a loan officer I educate buyers to take their agent with them everywhere, fsbo's and new construction included. Most new construction prices in a fee for a buyer's agent anyway; what do you suppose they do with it when there is none? Reducing the price is not likely.

May 09, 2018 07:12 AM #36
Rainmaker
338,521
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

What a great post with so much valuable information on New Construction.

Agents too often think they know more than they know. New Construction has many twists and turns.

Without experience and education on what a builder provides (they all differ) the agent may not serve the best interest of the buyer.

Understanding Builders Contracts is also very important.

Thanks for a great post.

May 09, 2018 07:38 AM #37
Rainmaker
10,128
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Broker

I always force my buyers to use an inspector during pre constructions walk-throughs....

May 09, 2018 01:51 PM #38
Rainmaker
436,410
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

Totally agree with you, new construction is a different type of sale--much more risky I think as well

May 09, 2018 02:35 PM #39
Ambassador
1,736,677
Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

New all sounds great-until you ask to have your own inspections.

May 09, 2018 05:45 PM #40
Rainmaker
81,913
John Myers
Myers & Myers Real Estate, Inc - Albuquerque, NM
Your Trusted Real Estate Advisor

Congratulations on the featured article.  I love to sell new construction.  Your article is spot on.  It is important as an agent to ask a lot of questions to the new home sales person and to make sure your client understands what they are getting.  The model homes they are viewing are typically "loaded" with upgrades.  Even things such as baseboards and all kinds of other things.

May 10, 2018 05:19 AM #41
Rainmaker
2,556,823
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Feature for sure and one that everyone in the rain should be reading.  Thanks for your great talents in writing and helping off of us.

 

May 15, 2018 08:48 AM #42
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
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