Today’s topic is best practices for buying a brand-new home. First let me make sure we are all on the same page, when I say brand new home, I mean a home that you will be purchasing from the company that built the home. Real estate agents typically call this new home construction. I think that covers it…new home construction is a home that:
1) is going to be built just for you
2) the building process has already been started—but you can buy this home and move in when it is completed
3) is built and ready for you to buy. (also known as a spec home or inventory)
Some builders LOVE to have inventory homes available for you to purchase. It’s simple, you love it, you buy it, this home is anywhere from 90-98% ready to be bought and lived in.
These three options make buying new home construction very appealing to potential home owners. The new home owners could, and I will stress “could” have some say in the details for their home depending on which option is available to them. Some builders allow lots of customer choices while others may give limited or no choices. Choices could be the front elevation or how the front of the home looks…you can pick option 1,2 or 3. or maybe a choice in tile or countertop.
You have options when you buy new home construction and you have the option to have a licensed real estate agent represent you. New Home sales consultants are full time employees of the builder. Because of this, a new home sales consultant is not required to have a real estate license or any of the required training that licensed real estate agents are go through. Some new home sales consultants were once real estate agents, but the builders will make them place their real estate license as inactive in order to be an employee. This is how the builders do business and they are within their rights to train their sales people how they see fit. Builders typically see an employee with a real estate license as a conflict of interest and a potential problem since they receive 80% or more of their customers from real estate agents.
If you have a real estate agent and you want to look at new home construction take them along. You want to have someone that represents YOU in any real estate transaction. Your real estate agent can review the contract with you, negotiation price/upgrades, can help you with inspections, and help you stay within your budget when you go to the design center and pick the tile, counters, etc. If you decide to go it alone, well… you will get no representation, no advise and counsel and no one to lean on when needed and there is always a need for help.
Myth—New home construction sales consultants do not like real estate agents
Fact—-New home construction sales consultants love to work with real estate agents that work for the best of their clients. Remember 80% or more of new home construction buyers come from a real estate agent.
So, if you want to buy new home construction, GREAT!!! Best practices…you will probably have an even better experience if you have a licensed real estate agent representing you.
I’m Scott Culberson, Broker Associate with Better Homes and Gardens Real Estate Gary Greene, email Scott@ScottCulberson.com. Reach out to me, I would love to help you to…
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