Buying a brand new home from a builder can be a great way to get the home of your dreams without having to make any concessions. Unfortunately, the process of buying from new home builders can also be a great deal more complex than the builder will admit. While buying new might seem easier than buying a previously-inhabited home, it’s important to remember that you’ll still be going into a fairly complex and important type of contract negotiation.
What new home builders don’t want you to know
While most new home builders really do want to build great homes and satisfy their customers, that doesn’t mean that these businesses aren’t still operating to make a profit. As such, they typically hold back certain information to ensure that as much of the process will go their way as possible. Below are five of the secrets that these builders really do not want their potential clients know know about.
1. You can and should bring a realtor to represent you
One of the big secrets of buying new construction is that you can (and should) have a realtor representing you during the buying process. If you contact new home builders on your own, you lose the right to have someone represent you during the construction process, making it harder for you to negotiate your contract and to deal with any issues that might happen during the period between when you sign your contract and when your home has been built. Going in without a realtor essentially tells the builder that it will be the builder and not the buyer who will dictate how things work from that point forward.
2. Buy during the end of the business quarter
While the company with which you work will likely do a great deal of work to look like it’s a local business, the truth is that most builders are nationally-traded companies that have shareholders to whom they are accountable. This means that most builders are looking to make quick sales towards the end of the quarter so that they can show positive numbers to their shareholders. If you want a great deal on a newly-built home, make sure to go when the company is in the direst needs of a sale. Try to visit during the end of the quarter when possible, and towards the end of the fiscal year if you’re able to do so. This will ensure that you get the best possible price for your new home.
3. You can have a pre-move in inspection done
Getting an inspection done is always an important part of buying a home. It is, however, one that is typically overlooked by buyers of new construction. It’s just as possible for a new home to have problems as an older home, with the added danger that no one has had to live in the house to determine how these problems will impact one’s living situation. It’s vital that you have an inspection done before you move in so that the builder can address any major code issues. Remember, many new home builders will agree to fix problems that occur before move-in, but that doesn’t mean that you’ll be able to get your deposit back if you are not satisfied with the quality of construction if you have to walk away from the contract.
4. You don’t have to use the builder’s lender
Most new home builders have a lender with which they work closely. The builder may even tell you that you have to get pre-approved by that lender in order to start construction. It’s a mistake, though, to assume that you actually have to work with that lender in order to buy a home. The builder will certainly make their chosen lender look like the best choice, but the truth is that you can work with any lender that you want when buying the home. The lender used by the builder might offer you certain bonuses or perks if you finance your home through them, but that doesn’t mean you should not do your due diligence. Take some time to look at other lenders to determine if you’re really getting as good a deal as you had assumed.
5. Delays happen
Everyone knows that building a home takes time. Unfortunately, new home builders aren’t always that honest about how long building a home will really take. While the builder will certainly quote you the average time that it takes to build a house to your specifications, this time frame rarely includes the kinds of delays that commonly happen during construction. Not only can something as simple as a supply problem cause major delays for your home, but it might cause you to spend a great deal of money finding someplace to live on a temporary basis. It’s always a good idea to find out the worst-case scenario when it comes to having a home custom-built.
Buying a brand new home from new home builders can be much more satisfying when you know all the information they’re keeping secret from you. Always make sure you work with a realtor who can help you to navigate the process in manner that will best suit your needs. When you’re ready to start looking at new construction, make sure to visit CENTURY21 Northwest.