Will this be the year you buy a brand-new home? Don’t be discouraged by news reports claiming that “U.S. home building fell,” or “housing starts dropped.”
The scary-sounding numbers are due to a drop in multi-family home building, not single-family.
In fact, the single-family home construction market across the country is set to be just fine, with a surge in new building permits late this summer.
Moving into a newly-built home is a lot like the first time you sit behind the wheel of a new car, but on steroids. No stinky smells from whatever it was the previous occupant was cooking, no greasy range hood and walls, no dinged-up baseboards – everything is new and pristine.
While these aspects may make you starry-eyed, there’s reality to contend with as well. Today we share with you some things to watch for when taking on the purchase of a brand-new home.
The builder’s real estate agent
When you drive up to the new home community you’ll notice quickly how you’re directed first to either set an appointment (COVID-19 era) OR you enter the builder’s office before you get to the model homes. That guy or gal sitting in the office isn’t a receptionist, but the representative of the new home builder either by a Listing Agreement or an agent of the builder (like an Listing Agent). Either way the onsite representative represents the home builder.
She or he will show you a map of the buildable lots available, talk to you about the community’s amenities, your mortgage qualification needs and, naturally, the homes, before sending you on your way to view the models.
If you fall in love with one, which is every builder’s goal, you’ll want to get the purchase process underway quickly.
Hey, I don’t blame you, this is exciting stuff! And, what better and easier way to do it than to allow the builder’s agent to get the ball rolling?
Ok, that’s the third time I’ve said it: “the builder’s real estate agent.” The real estate representing the home builder only represents the Seller (the home builder).
Think about this: if it were legal, would you use your about-to-be former spouse’s attorney in your divorce proceedings? Why do you suppose that isn’t common practice?
Here’s why: it is important to note the builder’s agent has a fiduciary responsibility to the Seller (the home builder) to protect both the builder’s interests. As a Buyer it is a good idea to have your own real estate agent familiar with new home sales to represent you (the Buyer).
Since the seller pays for the buyers’ real estate agent at closing, it only makes sense that you have your own agent who will look out for nobody else but you.
Avoid this problem by letting the builder’s agent know, upfront, that you have an agent (introduce your agent). Best and important that the Buyers Agent be present at the first walk through of the models.
The builder’s lender
Hey, this is a one-stop shop, right? Of course!
Home builders understand that they need to hook the buyer when he or she is most excited so they offer all the services one might need to get the process started. This includes an “in-house” or “preferred” lender.
Now, unlike using the builder’s agent, there’s nothing wrong with using the home builders mortgage lender, as long as you’ve shopped around and know that you’re getting a good deal.
Never feel that you have to use this lender, however, because you don’t.
Check out the builder’s reputation if you aren’t familiar with him or her. Start with the Better Business Bureau and then scour the city’s public records for lawsuits against the builder.
Buying a newly constructed home in Metropolitan Phoenix and surrounding Cities is a lot more involved than buying an existing home, but the end result is well-worth the steps it takes to get there. Edited by Gregory Victors, YAY Realty. Gregory Victors has helped Sellers, Buyers and Home Builders close escrow on over 1,960 homes since the year 2001. visit: www.yayrealty.com or https://easytosearchhomes.com/