Considering building a new home?
Let's discuss why you should have an agent when building a new home......................
Building a new home has loads of advantages. Not only do you get to choose the layout and floorplan that best fits you and your family but you also get to choose all the finishes and colors as well and you're the first family to move into your virtually untouched home. Besides the obvious design options you get from building your own home there's also comfort in knowing that you shouldn't have to do any structural or mechanical repairs for some time.
When you're ready to start the process the builder and his team are there to get you started. The builder's agent is there to help you start the process. What's important to remember is that the builder's agent is just that, the builder's agent. It's crucial that YOU are represented by your own agent that looks out for YOUR best interests and gets you the best deal.
It's important to either bring your real estate agent with you to your first visit or register them with the builder. Your agent is there to not only get you the most value for your money but also to make the process as smooth as possible and hassle-free.
Benefits of having your own agent when building a new home:
*Commissions - paid by the seller and is actually taken from their marketing budget. It has nothing to do with the price of the home.
*Negotiating extras - want upgraded paint colors or garage door? Let your agent help you get extra amenities and extras included. Getting the seller's title policy paid by seller.
*Financing - the build will push you towards using their "preferred" lender but let your agent help you to choose which one is right for you. It's best practice to shop your mortgage whether you're building your own home or buying an existing.
*Home inspection - needs 5 inspections at the minimum (Outside of the builder) – someone that represents you, the buyer.
These are important timeline items to inspect:
1) Is everything ready and where it should be before they pour the slab?
2) Have someone inspect the framing. prior to sheetrock: plumbing, HVAC, electrical, etc.
3) Have a licensed property inspector inspect the home. Just because it's new doesn't mean it's perfect.
4) Walk through inspection for list of final repairs to be completed BEFORE closing
5) Prior to one year warranty
Most people aren't aware that some builders pay more to their sales agents if there's NO realtor involved. Let's think about that. If there's NO buyers agent involved then more than likely parts of inspection process may not happen.There's no one to go through the paperwork to make sure it's all correct and things that you verbally talked to the builder about doing are mentioned. There's also no one there to make sure that all of the walk through items are completed before closing.
There's also the experience and expertise in understanding the builder's paperwork and asking the right questions.
Do you offer incentives for veterans or military personnel?
How do you handle change orders?
How often should we expect updates from you and what phases should we expect to have builder/owner inspections done?
We plan to be on the construction site often is that a problem?
How is warranty work handled?
If a problem arises and I decide to work with another builder what is your cancelation policy?
Have you ever owned a construction company under a different name?
Other considerations I ask about when building a new home
Extra electrical outlets in the garage or eves
Which way do doors swing open
Gas stub on patio
Height of fence