How to Buy a New Construction Home
Picture yourself out for a drive one weekend. You see a sign that says:
New Construction Homes!
Models Starting At $XXX,XXX
Next Right!
Maybe you’re actively looking for a house, or maybe it’s just a spur of the moment urge, but you follow the signs to the model home.
You park.
You walk into the model home.
The builder’s sales rep asks you to please sign in.
You sign in.
Ouch. You may have just made a costly mistake...
It’s Not Like I’m Buying One...
Most people don’t think twice about signing in when they visit a model home. They figure, what’s the harm? It isn’t like I’m signing something to actually <em>buy</em> one. I just want to take a look, and it’s not like they’re asking me to sign my life away.
But sometimes you do end up buying one.
You get the bug. You fall in love. You picture yourself in this lifestyle. Next thing you know, you’re making an offer on the spot.
Or, maybe you leave, but you can’t stop thinking about it the whole ride home so you decide you’re going to buy one.
Either way, if you decide to buy one, having signed in with the builder, you may have signed away your right to involve your own real estate agent represent and advise you.
Is A Real Estate Agent Even Necessary?!
Some people question whether it’s even necessary to have their own real estate agent involved in the purchase. They feel like they’re an unnecessary middleman. After all, the builder has a sales rep. They feel like they “found” the house, not a real estate agent. The builder or their representative can handle the paperwork. And, ideally, not having an agent will perhaps give them some leverage to negotiate.
Others just don’t even think to bring their real estate agent with them or didn’t want to “bug” them to go see a house they could easily get in to see. They just stop in on a whim, and once the ball gets rolling, they feel like they can’t involve their agent, or they might even be “encouraged” by the builder not to. And they figure, what’s the big deal... the builder or their rep can handle everything.
And some people feel like real estate agents just want to latch onto the deal to make a commission, while doing very little, since the builder and / or their rep can handle the paperwork and process.
It’s More Than Just “Finding” And Pushing Papers...
Sure, a buyer can “find” a new construction house on their own. And a builder or their sales rep can certainly handle the paperwork.
But the value of having a real estate agent on your side isn’t just about “finding” you a house (new construction or not), or filling in a few blanks on a contract and pushing the papers through the process. It’s about their knowledge, advice, and representation.
Okay, some agents out there may just want to get a few papers signed and wait for closing day to get a commission check. And, yes, you’re probably better off not involving an agent like that in the purchase of new construction.
But that doesn’t mean you shouldn’t find and have an agent who truly understands new construction (and real estate overall) on your side.
A good agent can help you:
Avoid costly mistakes
Get everything you can and should get from the builder
Advise you as to whether buying a particular home is the best or right choice for you
Offer alternatives you may not have otherwise considered
Help you choose the best lot and model in a development for your own enjoyment and future resale value
Keep the builder and building process in check
Advocate for you when issues arise with the builder
Have you or someone you known bought a new construction home? What was one of the biggest things you learned throughout the process? Tell me below in the comments!
