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You may also want to touch on the final walkthrough inspection, even though that’s likely a long time away. Ask the agent what you can expect if the final product is not delivered to standard. Walley says that it’s also important to ask about any HOA bylaws that may be present in a new neighborhood. An agent should be able to help you obtain and review those requirements before you get too far along in the process.
However, there can be times when you may need or want one. For example, you probably want to find an agent to help you with buying a lot if you want to build a new home from scratch on your own land. Return the next daywithoutyour Realtor and tell the builder to take the Realtor’s commission out of the price and start building the home. First and foremost, you should speak with an experienced Realtor. Find one that knows the market and has been a full-time agent for many years. It’s impossible to work in a city and not hear the stories… both good and bad, about what is taking place.
Do I Need a Realtor When I’m Building a House?
You also might qualify for some federal programs that make it easier for first-time homebuyers to finance their build. Week 9-11 – Flooring & Paint – Over the next 3 weeks, the homes flooring, doors, and cabinetry are installed. At this time the interior of the home is painted as well. Week 2-5 – Foundation – During this 4 week process the bones of the new home are built.
You will make sure that upgrades and custom features happen as they were agreed upon. You will be there for periodic walk-throughs of the new home, both during construction and at closing. There are myriad items with a new build that can easily be forgotten. As long as you ensure the correct documentation is in place, there should be no problem getting the builder to correct mistakes. Many building companies are unwilling to budge much from the list price of the home — selling at a lower price sets a bad precedent for future sales. It would be natural to think that a builder might be saving money if you showed up unrepresented.
Do You Need a Realtor to Buy a New Construction Home?
But if you make it completely 100% yours, outfitted to all of your eclectic personal tastes or the latest trends, you could face challenges down the line if you ever decide to sell. You will likely be required to put anywhere from 5% all the way to 33% of the total cost of the home upfront and then make subsequent payments throughout the process. Without a seasoned agent by your side, you could be agreeing to a payment schedule that conflicts with the structure of your loan. However, an agent with experience in new builds can help create a fair timeline for the build, including padding for inclement weather or construction delays.
Or better yet, hire a real estate attorney to do it for you so you don’t miss anything that leaves you vulnerable in the agreement. It’s easy to fall in love with the model, but they’re often equipped with expensive and optional extras. Get a spec sheet of what comes with your home plan so you can decide what to upgrade.
Tips For Buying New Construction Homes
Advising you on the importance of independent home inspections, connecting you with a proven inspector and helping you decide which inspections to consider (pre-drywall, final, radon, etc). Learn more about whether you need a realtor to buy a house. Have a question you want to be featured in our Ask The Broker series? You can submit your questions directly by visiting here or you can email Kathy at If you want to buy a new construction home, wouldn’t you want someone on YOUR side representing your best interest? Delaware Real Estate Broker, Kathy Sperl-Bell of Active Adults Realty explains the importance of using a REALTOR®, even when purchasing a new construction home.
Buyer’s agents are also there throughout the build process and will request regular construction progress updates. Or, if the builder asks for a delay in construction, a buyer’s agent may push back and try to keep the builder on schedule. If you are a strong buyer with a good credit score, you have options and more bargaining power than you think.
Give feedback to prevent you from spending too much on upgrades that may not pay off at resale for your home construction. Discuss the resale value of various potential finishes and selections in your home as you design your home in case you need to sell it in the future. Others depend on buyers to build on their own lot that they have already purchased.
Be sure to ask about the firmness of the “days to close” number as well. Often this is a function of financing, inspections, and building combined, but an experienced agent will be able to tell you the likelihood that the number will stick. The builder’s agent usually has a pre-made contract drawn up, but that contract will naturally favor the builder.
It is not uncommon in some areas of Florida to pay for at least two policies, which can equate to thousands of dollars. Also, you want to pay attention to the deductibles for hurricane damage. You may not get your money back out of your home, should you have to sell within a few years. Yes and this ties into the appraisal and resale of your home.
Staying in constant contact with your builder can be a full-time job. “Having a Realtor® gave me peace of mind,” explains Angela Worley, who purchased a new build in 2018. “She would even drive to the lot and take pictures for us to update us,” noting that the builder’s agent didn’t do a sufficient job of keeping them in the loop on the construction progress. You’ll have little to no legal recourse on any of the above issues if you sign away your right to legal recourse. A buyer’s agent could also help you hammer out a builder’s warranty that would cover defective material and labor as well as keep both sides from costly legal fees if problems arise.
Allow your realtor to do what they are best known for when it comes to negotiating. Using a realtor can assist you in paying less for your new construction dream home. Your real estate agent will know how upgrades or customizations work, what the market expectations are, and how to work with a builder to get what you want at the right price. Many home buyers who are purchasing a new construction home don’t know if they should use a real estate agent or not. There is a lot to the process of purchasing a home, as each transaction presents a different set of circumstances. New construction homes present their own set of details and things to pay attention to when it comes to your purchase.
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