Whether to buy an existing home or have one built is yet another decision to make during the home-buying process.
If you decide to go with new construction, a real estate agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date, and other terms with the home builder. Below are some basic pointers to prepare you for the journey ahead.
What kind of builder do you need?
Selecting a builder: Shopping for a large production or custom home builder can be a daunting task. Start by defining what architectural styles appeal to you, and then seek out the builders in your area who offer those styles. Ask friends for referrals to get firsthand accounts; verify the builder's state license status and check whether they're certified by the National Association of Home Builders.
Builders want to sell you a home
The builder representative and your real estate agent: A builder representative's ultimate goal is to sell you a home. Their role is to provide a wide range of information to help you in your decision-making, from building restrictions, roads, and easements to inspections, warranties, rebates, and upgrades. A real estate agent knowledgeable in new-home construction will be able to help you wade through all the data and point out the downsides and upsides of each line item. Your agent can also look for your interest in reviewing the builder's contract, which often contains more legal jargon than consumer-friendly language.
Market conditions greatly dictate a builder's incentive to deal with you
Timing is everything: Market conditions greatly dictate a builder's incentive to make a deal you cannot refuse. Whether to buy an existing home or have one built also depends on the market conditions. When a builder has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be more willing to strike a favorable deal, whether it's throwing in upgrades or taking a bit off the asking price. A real estate agent can help you know when market conditions are right for these benefits. Also, watch for builder close-out sales. Builders promote these special events when a new subdivision is near completion, but empty inventory remains.
Builders require a deposit
A word about paying up: While there are always exceptions, most builders require a deposit when signing a purchase agreement. They also need that the buyer pays for any upgrades before closing. Unless the agreement states otherwise, you will lose that money if you back out before closing. Before signing it, make sure you understand every detail in the builder's contract. A real estate agent can help you understand these consequences and warn you.
Are you looking to buy or sell a home in the Robstown, TX area?
Robert Ellis | Realtor | Ellis Realty Group 361-739-7219