Thinking about buying new construction or building your new dream home?
If you are thinking about buying new construction or building your new home you have come to the right website page. This page was designed because many people do not understand the process of building a new home and instead of doing their research first, they go to visit the builders model homes. You want to make sure that you know as much as you possibly can about the process before you go meet with the builders and their inside sales representatives. It is important to note that the builders sales representatives who sit in the model homes work for the builder and represent the builder, NOT YOU! You are entitled to have a real estate agent represent you and your interests and most of the time the builder will pay your agents commission as well. Below are the most important aspects. tips and suggestions of buying new construction that you need to know and consider (including many things that the builders do NOT want you to know)!
Traditional Builder vs. Custom Builder
There are basically two choices that you have when you buy new construction. You can either go to a traditional home builder (the larger companies) or you can decide to hire your own custom home builder. Traditional home builders usually have set homes, floor plans and options that they will allow you to build. Many call these "cookie cutter" homes. Custom home builders can do everything from helping you completely design your home from scratch or build you a semi-custom home. A semi-custom home is when you take a floor plan and make changes to it to fit your individual needs.
Picking the Right Lot to Build Your Home On
One of the most important aspects of building new construction is deciding on which lot you are going to build your new home. Picking the BEST lot sometimes comes with an extra "lot premium" charge, but it is always better to have the BEST lot than an inferior one. When the real estate market changes and demand is low and homes are not selling like hotcakes the homes with the BEST lots continue to sell faster and for more money than inferior lots most of the time. Other things to consider are the grading of the lot (can you have a walk-out basement or not), the setbacks and restrictions of the lot and even where the sun rises and sets on the lot. Often I find that many buyers do not put as much into picking the right lot as they do the color and style of granite counters that they put into the kitchen. Granite counters can be changed later, but your lot can not!
Selecting the BEST Options for You
Most home buyers who are ready to build a new home walk into the model home and LOVE EVERYTHING THAT THEY SEE! Builders know this and want to sell you on ALL of the options that they can because they make more money when they sell more options. However, many buyers can not afford to buy every single option that they want. My advice is to get the options that maximize your overall square footage first then focus on the finishes. For example, if you can't afford to do the morning room bumpout and the upgraded tile package in the bathrooms, do the morning room addition and upgrade the tile later after you are living in the home. If you can't afford to finish the basement and add on the 3 story addition bumpout, add the 3 story addition bumpout and finish the basement later yourself. You can always add the additon or extra square feet later, but most of the time it is MUCH MORE EXPENSIVE!
Negotiating to Get the BEST Terms for You
When building a new home with a home builder it is important for you to understand that the builders and developers want to keep the values at or above where the homes are selling for in their communities. Because of this many home buyers who are purchasing new construction think they can not negotiate with the builders and often the sales representatives will tell you that they do not negotiate. However, in my experience you can ALWAYS negotiate with home builders, you just have to know what you can ask for. I have had much more success asking for builders to include options or additional features instead of just simply asking them to reduce the price of the home. The option prices that the new home builders charge for "extras" more often than not don't cost them as much as they say they actually do. Some builders also build spec homes or "quick move-in" homes and you can get incredible deals on those since they are already built and you didn't have the luxury to pick and choose the options that you wanted. One more tip is timing your sale, many builders have quotas or targets that they need to hit each month, quarter and year to make their shareholders happy. If you can time the sale at the end of the month, quarter or year, you are much more likely to get a better deal if they are struggling to hit their targets (which they probably won't tell you).
Do You Have to Sell Your Home Before you Build Your New Home?
Many people have to sell their homes before the settle on their new home. While many new home builders will accept contingent contracts (contingent on selling your home), some will not. It is important to know whether or not you have to sell your home before you buy your new one and how much money you can expect to net when your home sells that you can use to put towards the purchase of your new home. If you have a home to sell first and would like to have an idea of what you can expect to net, visit my FREE HOME E-VALUATION page and I would be happy to arrange a FREE IN-HOME Seller Consultation with you at a convenient time around your schedule.
Why would a Builder Pay an Agents Commission who works for the Buyer?
I often have people ask me why home builders would be crazy enough to pay for your own agents to represent you as the buyers. The answer is very simple, the agents have A LOT of the buyers and if the home builders want more traffic and prospective buyers to come through their model homes they offer to compensate the agents for bringing the buyers to them. The builders who don't offer to pay commissions to agents don't get the agents sending buyers through their model homes.
I OFFER 100% FREE CONSULTATIONS!!!
If you would like to schedule a consultation to talk about your new home construction plans, all you have to do is fill out the form at the bottom of this page or you can CONTACT ME HERE. I would be happy to arrange a 100% FREE phone, office (mine or the builders) or in home consultation with you set up around your schedule (even if it's in the evening or on the weekend)!