Important Information for those buying Newly Constructed Homes.

90% of sellers that you will come in contact with are represented by a real estate agent. This percentage will bump up to 100% when you are dealing with a newly constructed home.

A real estate agent counsels the seller’s and helps them decide what is best for them. This could be something as simple as what they need to do to sell their home, or as complex as how to handle deals and negotiations, or contract disputes. Quite often, a buyer does not have such a luxury, but this does not mean that they cannot be represented.

It is important that each side of the scale is divided equally to see that everyone is taken care of. In order to see that both sides are represented equally you either need to know all you can about real estate, or consider hiring a buyer’s agent to handle your needs and remove the stress from your home buying process.

By hiring a Realtor to be your buyer’s agent you will have someone there that is out strictly to represent you and no one else. Imagine how much better you will feel knowing that your interests are sure to be met.

Actually, I should tell you that your needs will not only be met, but my fee is paid by the builder. So not only will you have someone there to protect your needs, but it is at no cost to you whatsoever!

There are many things that an experienced buying agent can do for you. Just by having someone working on your behalf, you will find that you feel much more secure in your position because all the facts will be available to you.

By representing any client as a buying agent I promise the following:

• I will work specifically on your behalf!
• I will offer you all my knowledge in real estate and marketing!
• I will allow you to use any needed information in my possession to match you with the perfect home for your family!
• I will accompany you to any subdivision sales office for your first visit! (Note: Builder rules state that your buyer’s agent must accompany you on the first visit)
• I will negotiate the best price for you!
• I will negotiate the best options and terms for you!
• I will review all your paperwork before you sign!

There are many things that you may want to consider before buying a new home. Below are some things that are specific to newly built homes.

• When you buy you will want to attempt to close near the end of the builder’s fiscal year. Don’t go out of your way to do this, but if you can wait, this will allow you to be able to negotiate more than any other time of the year. Builders will want to end the year with as little inventory as possible. Keep in mind that not all fiscal years end at the end of the calendar year. You may need to check your library to find out the end dates for the subdivision you are interested in.

• Hire your own professional inspector. You will want to have them come in at least three or four times during the construction phases. There are many inspectors that feel that they find more problems from a newly constructed home then they do resale homes. If you do not do this you may be stuck with having a builder have to fix your home while you are living in it. That is, if they will fix it. Ultimately you want your home to be perfect so look through the eyes of a perfectionist. Hire a professional inspector, go in and check yourself, and if you have any friends or qualified relatives, have them look as well.

• Get the upgrade package. Considering how dependant most people are on technology, it is in your best benefit to purchase the upgraded wiring, communications package. Make sure that your home is wired for numerous phone lines and for high speed internet. This will save you time and money and avoid workers coming in and doing a costly job once you have moved in.

• Be prepared for extras and upgrades. You should expect to pay a maximum of 15% of the sales price in extras, landscaping, and upgrades. You should see what the builder is offering and what they will offer in allowances than check other prices from outside contractors. All of the upgrades you choose will increase the purchase price. This means that it will also increase the value of the home and the property taxes, as well. Any non-builder upgrades that you do or have done for your home after the closing that do not require any permits will not be added to the value because the assessor will not know about them.

• Avoid wood casement windows. Wood casement windows will turn out to be much higher maintenance in the long run then vinyl clad windows that have wood finishes. You should also make a point to check the energy efficiency of the builder’s windows.

• Check with the sales staff for any homes that have fallen out of escrow. Occasionally, homes from a previous sale or phase can be purchased at the old phase price. Any standing inventory can be a good value for a buyer, as well.

Most builders will only consider negotiating on a price at the very end of the project. They need to protect the price of the homes so that the previous buyers do not become upset about the lower prices being offered.

Depending on the market they will rarely give free upgrade packages. They do not have to in most cases, because people are waiting in line for them anyway.

Occasionally a builder will give you incentive to use the in-house financing option. Usually there is no problem with the builder’s financing options, though it is wise on your behalf to shop around, and check local mortgage lenders, as well. No matter what deals are being offered you want to be sure that your dreams and finances will be safe.