New Construction NIGHTMARES

What can go wrong with a new home, it is new after all. There is a sharp rise in buyers wanting new homes. Many buyers though do not know how new construction works. It can be complicated and can be stress full. Doing it right over wrong can mean tens of thousands of dollars. Doing it right can also mean a happy ending in ones dream home.

Lets start this story with a buyer who thought they did not need a buyer agent for a Manchester NH area NEW HOME. They went to an open house, told the agent the highest amount they want to spend. They end up with a home for that price. They then were asked if they wanted upgrades and extras. You name it, they added it. They gave a large deposit which turned out to be non refundable. They went home and waited for the home to be built.

Fast forward 3 months, the home was taking shape. They were 30 days away from finishing and closing. They were called to make sure their mortgage was all set. THEN reality set in. The buyer has not talked to their mortgage company, how were they to know they said. They reached out quickly and the loan officer started the process. The buyer is VA. He was expecting no money down and seller pays the closing costs. But that is not the contract he signed. The builder is not even VA approved, how were they to know. Then the house price was $85,000 more than they could even get a mortgage for.

A time out was called. The builders rep wrote an offer on an unqualified buyer without asking for any proof they could buy. The builder built without any proof the buyer could close. The buyer thought everything was fine, they didn't know, they never bought a new house before. BUT there daughter did, and I sold their daughter a house. She called me for help.

It was quite the mess. After reviewing the whole scenario, the best action was getting out of this contract and hoping to get their deposit back. I had them speak to my favorite attorney. The lawyer liked my plan to meet with the builder before filing anything. I have sold homes for this builder and we did have a good relationship. The builder said he was embarrassed. How could this happen? They hired the agent that worked the cheapest, that is how. 

In the end the builder released the buyer and refunded their deposit. The buyer was sat down and taught what happens when a house was built. They hired me as their buyer agent. Then good things started happening. The builder had another home he started where the buyer backed out. My buyer loved it. It was pretty much finished. The buyer would be able to choose their kitchen cabinets and counters. The floors were in and home painted neutral. The buyer was very happy with the kitchen design process. Mrs Buyer found it fun she said. There was some extras they wanted and we negotiated them in the deal. There are "secrets" to get deals in new construction when prices are said to be firm. Upgrades at cost and sometimes for free. 

IN SUMMARY, the buyer got a really good deal. They went from being depressed to excited. They got their dream home and at a great deal. The builder asked if i would list a couple of his homes to be built. He said he wants me on his side instead of negotiating against him. We all got a chuckle over that.

IN THE END: If you are interested in new construction, get a buyer broker. NOT JUST ANY buyer broker, but one "well experienced" with all aspects of new homes. In NH, that can be me. 

I leave you with my infamous thoughts, My philosophy is simple, provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.