The thought of a brand new home can be a very attractive proposition. You’re the first person to ever live in it, you’ll be able to pick colors and styles of your own (at least to a certain extent), and your neighbors are all brand new to the area so you can start new traditions together...
The question on some buyer’s minds, however, is exactly how you go about purchasing a new home.
Start off by talking to your Realtor about representing you as a Buyer’s Agent. While the builder may pressure you to use their representative, remember that they’re working for the builder while your own Buyer’s Agent is working for you and has a fiduciary responsibility to you. A responsible Buyer’s Agent discusses the pros and cons with you as well as keeping your confidences just that: in confidence. Note also that it’s best to take the Buyer’s Agent with you the very first time you visit the new development. Some have difficult rules that require you to show up with your agent from the first visit.
A new home builder may also pressure you to use their on-site or partnership financing. It’s likely, however, that your own bank or mortgage broker can get you even better rates because they’re looking at a variety of lenders and options rather than just one.
Your Realtor also likely has experience with the development in which you are interested and will know of their reputation. For instance, your Realtor may be aware of any previous or current lawsuits the in which the builder may be engaged.
Your Realtor can also find out whether or not the builder sells consistently to investors or if most home units are required to be owner occupied. It has been surmised that much of the turmoil in our current real estate market was due to investment in real estate by speculators who bailed on their properties as soon as they saw trouble - leaving the average home owner to bear much of the pain in terms of depressed home values and ever-tightening lender restrictions. For this and other reasons, a neighborhood of owner occupied homes may be a better choice.
Your Realtor can also recommend a qualified, professional home inspector. Yes, even new homes need an inspection! Home builders sometimes make mistakes, and an inspector can spot mistakes the average home owner wouldn’t notice until it’s too late - such as plumbing or HVAC issues.
Finally, keep in mind that ultimately your real estate and mortgage professionals have an interest in developing and maintaining a long term relationship with you, and always appreciate your referrals. This certainly gives them more incentive to work in your best interests - rather than a builder’s agent who may see you as a one-time deal.
# posted by
Tara O'Brien @ 9:35 AM
