New Construction Insider Secrets Every Buyer Should Know

When it comes to buying a new construction home the process is different than that of buying an existing home.  While different than what you may be used to, buying a new construction home can be a fun and rewarding experience.  Here are some insider secrets you should know when it comes to buying a new construction home.

What Impacts Pricing

Builders don’t just pull a number out of a hat and decide that is what the asking price will be. There are many factors involved that make up the asking price such as:

• Where the home is located
• How much the land cost that the home was built on
• The total cost of all materials needed to build the home
• The labor costs involved
• The area market conditions
• Impact fees imposed on the builder

You Need A Real Estate Agent

Purchasing a new construction home can be a complicated process and even intimidating if it’s your first time.  You want someone looking out for your best interest and a real estate agent is there to do that for you.   Interview and hire a real estate agent who is experienced in working with new construction.  Many builders will require you to have your real estate agent with you the first time you visit the model home or community.

Right Time To Buy

Buying a new construction home should fit your timetable, but keep in mind some larger publicly traded companies have sales goals they need to meet before a quarter ends to satisfy their shareholders.  You may find that builders offer more incentives when it comes to buying a new construction home towards the end of a quarter.

Pricing

Don’t expect a builder to lower their asking price. If they do it once it sets the precedent for their future sales. Instead, builders may be willing to negotiate more on upgrades in the home. Closing costs are other negotiable points.  Don’t think that by not using a real estate agent that they will drop their price because they aren’t paying a commission. That doesn’t happen.

Get It In Writing

No matter how minimal it seems, you want to get everything in writing.  To protect yourself you want to have every detail in writing.  This is when a real estate agent working on your behalf can help make sure you and your desires are protected.

Buying A Model Home

Builders do sell their model home and they can be a great purchase and an excellent deal. Model homes are the shining star of builders and are designed to showcase their best work.  Many times you will find they are full of upgrades and special features. When a development is nearing completion most model homes go up for sale and this could be a deal for a buyer.

Builder Research

Always do your research before hiring a builder, as all work is not created equal.  Talk with other homeowners who have purchased a home from a builder as well as ask for references.

Lender Choices

When it comes to securing lending for your new home, know that as the buyer you have choices. The builder may have a preferred lender or may even offer their own financing, but that does not mean you have to utilize it.  Always shop around and find a loan that terms and rates are best suited for you and your needs.

The Silva Group has a close relationship with many local builders and are qualified to assist you in buying a new construction home. Contact us today to see how we can help you make your dream home become a reality.