Building a Home
What to Expect or Not to Expect when Building a Home!
BEFORE you visit builders!
Contrary to popular belief, a buyer in most cases will pay the exact same amount for new construction whether they have an agent represent them, or whether they go directly to the builder. Very often buyers feel they can save a buck by dealing with the builder directly. To protect yourself, you need to do your homework first. Find an agent who understands the process of new construction. (Buyers agent fee is paid by the builder)
Hire a Buyers Agent
Agents are required to go through a Consumer Notice with you when they first meet you. They have to disclose whether they can work for you, or whether they must represent the builder. Keep in mind that if you meet a sales agent in a model home, that sales agent is there to represent the best interest in the builder, including getting the most money from you for the builder. You should have someone who understands home construction, warranties, financing, differences in pricing, quality, even lot selection so that you get the best value for your money!
Get Pre-Qualified
Determine what price range and payment range you’re most comfortable with before you get caught putting down a model that is above your payment requirements. Always meet with your lender prior to home shopping (if you do not have a lender, check with your Real Estate consultant). Have your lender pre-qualify you in advance so that you know exactly the price range that is within your budget. Some builders do have preferred lenders that they will request you work with. Find out what incentives may be offered to you.
Finding the RIGHT Builder
If you were going to find a family doctor, you could be looking for someone who was the most compassionate. There are all sorts of different doctors with different specialist.
Select the Neighborhood
Your buying a community as much as your buying a home. Make sure you and your agent investigate the area and it’s amenities.
Selecting Your Options and Upgrades
Beware the Upgrade Demon! Builder’s often make more on Option Sales and Upgrades than they do on the actual construction of the home! Every builder is different, and what maybe “standard” in one builder’s model, may be an “upgrade” in another.
Writing the Contract to Protect the Buyer!
Most builders have their own contracts. Read it carefully. You may want to have your agent or attorney read it as well.
Inspections
The home is brand new. It’s 2x4 or 2x6 construction and built with modern materials that are durable, low maintenance, stronger, quieter, and safer. That doesn’t mean it’s perfect, you will want to consultant with your Real Estate consultant on what inspections (if any) may be necessary.
Building in Process
If you live locally where you are building, it is important that you make periodically appearances at the building site. If you see something that you don’t understand, ask questions, Your agent will be involved walking the site as well…..The more eyes the better!
Walk Through
Do a thorough walk through with your agent present! Again, the more eyes the better! Your agent may see something that you would ordinary miss.
We hope this has been an educational piece for our current and past clients when thinking of buying
New Construction.
Remember to call us we would be happy
to answer any questions!
Steve & Marcy Blunier
Unique Albuquerque Homes, Inc.
www.uniqueABQhomes.com
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