3 Things To Know About Buying A New-Construction Home

By
Real Estate Broker/Owner with Clark Properties 603683

Will this be the year you buy a brand-new home? Don’t be discouraged by news reports claiming that “U.S. home building fell,” or “housing starts dropped.”

The scary-sounding numbers are due to a drop in multi-family home building, not single-family.

In fact, the single-family home construction market across the country is set to be just fine, with a surge in new building permits late this summer.

Moving into a newly-built home is a lot like the first time you sit behind the wheel of a new car, but on steroids. No stinky smells from whatever it was the previous occupant was cooking, no greasy range hood and walls, no dinged-up baseboards – everything is new and pristine.

While these aspects may make you starry-eyed, there’s reality to contend with as well. Today we share with you some things to watch for when taking on the purchase of a brand-new home.

The builder’s real estate agent

 

When you drive up to the new home community you’ll notice quickly how you’re directed first to the builder’s office before you get to the model homes. That guy or gal sitting in the office isn’t a receptionist, but the builder’s real estate agent.

She or he will show you a map of the buildable lots available, talk to you about the community’s amenities and, naturally, the homes, before sending you on your way to view the models.

If you fall in love with one, which is every builder’s goal, you’ll want to get the purchase process underway quickly.

Hey, I don’t blame you, this is exciting stuff! And, what better and easier way to do it than to allow the builder’s agent to get the ball rolling?

Ok, that’s the third time I’ve said it: “the builder’s real estate agent.” Sure, legally this agent can represent both you and the builder, but is it a wise move?

Think about this: if it were legal, would you use your about-to-be former spouse’s attorney in your divorce proceedings? Why do you suppose that isn’t common practice?

Here’s why: it is almost impossible for the builder’s agent to protect both the builder’s interests and yours in the same transaction.

Since the seller pays for the buyers’ real estate agent at closing, it only makes sense that you have your own agent who will look out for nobody else but you.

Avoid this problem by letting the builder’s agent know, upfront, that you have an agent.

The builder’s lender

Hey, this is a one-stop shop, right? Of course!

Home builders understand that they need to hook the buyer when he or she is most excited so they offer all the services one might need to get the process started. This includes an “in-house” or “preferred” lender.

Now, unlike using the builder’s agent, there’s nothing wrong with using his or her lender, as long as you’ve shopped around and know that you’re getting a good deal.

Never feel that you have to use this lender, however, because you don’t.

The builder

Check out the builder’s reputation if you aren’t familiar with him or her. Start with the Better Business Bureau and then scour the city’s public records for lawsuits against the builder.

Buying a newly constructed home in Billings is a lot more involved than buying an existing home, but the end result is well-worth the steps it takes to get there.

 

3 Things To Know About Buying A New Construction Home

Comments (9)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Laura Clark very good report about buying a new construction home.

Oct 08, 2019 07:48 PM
Laura Clark

Thank you, John.

Oct 08, 2019 07:54 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Welcome to the ActiveRain community. Congratulations on your first post.

Oct 08, 2019 07:49 PM
Nicholas Crane
Woodland Companies - Cadott, WI
Managing & Appraising Forest Land

Laura Clark Thanks for sharing some great info about buying new home construction.  Welcome to Active Rain. 

Oct 08, 2019 08:53 PM
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Hi there,

Welcome to ActiveRain. Congratulations on writing your first post.

Oct 08, 2019 09:01 PM
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

Good morning Laura, congrats on your first post and welcome to ActiveRain. Thanks for sharing this information on new construction, having representation from a realtor could save buyers thousands of dollars.

Oct 09, 2019 03:56 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Laura Clark welcome to ActiveRain, and congratulations on successfully posting your first blog on this site.

Oct 09, 2019 09:07 AM
Laura Clark
Clark Properties - Round Rock, TX
The Best Realtors in Round Rock, TX!

Thank You, George!

Oct 09, 2019 09:21 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for following my blog. Your comments are always welcome.

Oct 11, 2019 03:52 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
All the best of success to you.
Bob

Nov 23, 2019 10:09 PM