Tip number 1.
Use a realtor yes us Realtors represent new construction buyers all the time but that can be confusing for buyers because they go into a model home the meet the sales rep and that sales rep can answer all the questions that they have in order to purchase the home with those sales reps work for the Builder and you should want a representative working for you especially if you find a realtor that’s familiar with the new construction process their advice can be very very valuable if it’s possible because if you register with a builder out of model home you know you fill out that little card that they give you when you first walk in and you don’t indicate that you have a realtor then they might not want to work with that Realtor later on in the process now most Builders are very happy to work with real estate agent but it can be very frustrating for a builder if you was a buyer coming in 3 different times and picking out floor plans and getting close to writing a contract and then all the sudden you bring a realtor in at the last minute and from your Realtors perspective we don’t want to come in at the last minute either Our advice is valuable throughout the whole process so let us start from the very beginning so here’s what I tell my buyers if you happen to go to a model home without me which happens all the time because buyers will go out on weekends and they have 30 minutes to kill so they run into a model home just tell the sales rep that you’re working with a real estate agent if you happen to have one of your Realtors cards then give them that card if you don’t then just write down their name and if you’re on one of those house hunting trips and you find a house that you really love call your real estate agent right away and talk about the next steps the sales rep may make you feel like you have to act now or sign a contract because of another buyer is coming in an hour to put down a deposit take a breath call your agent.
Tip number 2.
Is understanding the different costs and a new construction purchase you may see that sign at the end of a busy road that says home start at $200,000 then you go into that model home and everything that is available is closer to 300,000 why does that happen that’s because they advertised price is of the lowest price base model with no upgrades in premium so let’s break down the different costs you may have any new construction home first you have the base price of the house that’s the cost of the floor plan you chew with no upgrades at all the next cost you may have is the lot premium Now this isn’t on every lot in a neighbourhood this is only for lots that the Builder considers better than other Lots so say the neighbourhood that you’re buying and has a pond those lots that are located on the pond or probably going to have a lot of Premium the better the lot the higher the pre is the lot that you pick doesn’t have a premium that’s because it probably isn’t as desirable as the other lot maybe it backs up to another home maybe it backs up to a road so as you’re talking to make sure you ask them about the lot premium for the lot that you like construction options does your Builder offer a bonus room option or a extended master bathroom or turning a living room into a den these would be examples of construction options either not to be confused with cosmetic auctions which are picking out the colour of your cabinets and we’ll talk about that neck every Builder has different instruction options in these costumes really add up however adding some of these construction options during construction is typically the least expensive time to do it so you may not need that fourth bedroom right now but if you decide to have that second baby adding that bedroom on during construction will be a lot cheaper than doing an addition five years down the road cosmetic options these are the fun ones going to that Design Center can be the highlight of the building process but you can also get a big dose of sticker shock these costs add up quickly so my advice to buyers is to set a budget and stick to it there a lot of things offered by the Builder that can be done later at a cheaper price the two things that I tell my buyers to focus on our flooring in the kitchen those things are very expensive and inconvenient to remodel so it’s best to have those costs rolled into the mortgage as long as it doesn’t put you over your monthly budget so all of these costs together will determine the final price of your home.
Tip number 3.
Is negotiating with Builders Builders don’t like to negotiate their base prices they have to keep these prices similar because they’re selling a whole bunch of the same model as long as people are buying their homes they have no reason to negotiate the prices however Builders are more receptive to negotiating things or credits so instead of asking for a $10,000 reduction in the house price have your agent asked for $10,000 in credits towards to The Design Center or towards closing cost not ever going to give you credits they might not want a negotiate a completely depends on how popular their product is but it doesn’t hurt to ask know if you happen to be interested in an inventory home this is a home that already built by the Builder or mostly built by the builder then that might give you a better chance of negotiating price because of that house is almost ready to go in the Builder doesn’t want to have to pay for the holding cost that house again they may not be willing to go down too much in price but you may have better luck negotiating with a builder on an inventory home then on a free construction one.
Tip number 4.
Closing cost on new construction homes I’ll start the segment off by saying every Builder is different but no matter which filter you’re using make sure you pay very close attention to the closing costs most large builders in the State of Florida push all the closing costs except for the real estate fees and some other fees over to the Fireside this can be several thousand dollars that you wouldn’t be paying in closing cost if you were buying a resale home now before you get annoyed or discouraged about that a lot of Builders offer a monetary incentive a rebate if you use their preferred lender and this rebate will often cover the increase in closing costs but be smart about it and understand that Builders will use this rebate as a big incentive when in actuality it’s really just covering the cost that you wouldn’t have had to pay if you bought a resale house so what about that preferred lender that they wants you to use should you use them what’s on my buyers do you actually use the preferred lender because they want that rebate that rebate can be very significant however make sure you do your due diligence and talk to other lenders and make sure the interest rate that they’re offering you is a fair one and outside Leonard may be able to rebate you an amount similar to what the villagers offering and give you lower interest rate it never hurts to ask to do your homework when it comes to lenders.
Tip number 5.
Inspections yes you can do home inspections on new construction homes if you’re building a house from scratch. I recommend two different inspections the first inspection is your pre drywall inspection this is when an inspector comes in and looks at everything on the inside of your house you don’t get to see that stuff once the drywall gets up. It’s the most important inspection during the building process I also recommend an inspection just before closing to check and make sure everything is functioning correctly this would function just like a regular Home Inspection function where you get a report you pass that report on to the Builder so they can add that to the punch list so everything is perfect when you close on your home so a lot of people don’t do inspections prior to closing because of Builder will offer a wonderful warranty that will cover anything that happens after you move in that’s a great feature a new home construction but it’s a lot easier to deal with issues prior to closing then it is deal with them after closing to get that home inspection.
Tip number 6.
Is construction time expectations say your Builder says that it will take 4 months to build your house that is their goal but in reality they never know exactly how long it’s going to take to finish that build Builders have to deal with so many things they have to deal with weather issues they have to deal with materials being supplied on time they have to do with contractors doing their job right inspections permits and so much more it’s a lot to manage for them and doesn’t always go smoothly trust me no realtor wants to take longer to close on a house and it absolutely needs to take they don’t make money until they closed on the house they would have closed as much as you do there are just some things that are out of their control so what that means is if you’re selling your current house or you have a least that’s going to expire close to the time that your house is supposed to close make sure you look into a backup plan just in case there’s a delay for example if your 19 talked to the landlord about possibly going month-to-month if you need to if you’re selling your house see if the buyer will be willing to extend closing or lease the house back to you if neither of those things are an option and check into corporate housing and put all your stuff in storage.