3 Things to Know about Buying New Construction
Imagine your first weekend in a new home; a home without nasty smells leftover from the previous occupants, no smudged baseboards, and a sparkling clean refrigerator that has never held leftovers. The only thing you need to do this weekend is to relax and enjoy your new home.
Sure, there are other reasons to purchase a newly constructed home rather than an existing one but let’s take a walk through the purchase process so you know what to expect from the minute you step into the new home community’s office.
The Real Estate Agent
New home communities are typically laid out so that visitors are herded into the builder’s office before they reach the model homes. The person that greets you here is usually the builder’s real estate agent. Read that again: the builder’s real estate agent. Although she may be a perfectly fine person, full of wit and charm, she is not your real estate agent, nor should you entertain fantasies of how easy the process would be if she were.
The best way to avoid the temptation and any pressure the agent may try to place on you is to mention that you’re working with a real estate agent. Ethically, the builder’s agent must back off trying to recruit you as a client.
The builder pays the real estate commissions so there is no reason not to have your own representation during the purchase process and many reasons to have it. Real estate agents have what are known as “fiduciary” duties to their clients. The duties for the buyer’s agent are different from those of the seller and believe us, they do conflict.
Think of it as being represented in divorce proceedings by the same attorney that is representing your spouse. Not a good idea.
The builder may also have a preferred lender and you will no doubt be urged to use it to finance the purchase. Unlike the real estate agent, there is nothing inherently wrong with using the builder’s lender, as long as you’re being offered a good deal.
The advantages of using the builder’s lender include the fact that it may have appraisers who are familiar with the new community.
Never feel that you have to use the builder’s in-house lender; you are within your rights to use any lender you prefer.
As in most professions, there are good builders and there are those that take short cuts or do a lousy job.
If you aren’t familiar with the builder, do some checking on his or her background. Start with the Better Business Bureau in your area and then check public records for lawsuits against the builder.
There is a lot more to buying a newly-constructed home than an existing home. Carefully choosing your real estate agent and then investigating the builder will go a long way to helping the transaction run smoothly.
Is Now a Good Time to Move Sarasota?
Two New Surveys Indicate Urban to Suburban Lean
Sarasota Homebuyer Traffic Is on the Rise
The Latest Unemployment Rate Fell to 8.4%
Have You Ever Seen a Housing Market Like This?
FSBO Millionaires Use Real Estate Agents
Sarasota Homebuyer Demand Is Far Above Last Year’s Pace
How Will the Presidential Election Impact Sarasota Real Estate?
It’s Not Just About the Price of the Home
Three Ways to Win in a Sarasota Home Buying Bidding War
Why Is It so Important to Be Pre-Approved in the Homebuying Process?
Here’s how to know if you’re ready to sell your Sarasota home!
July 2020 Sarasota Housing Report
Should You Buy an Existing Sarasota Home or New Sarasota Construction?
Builders & Realtors Agree: Sarasota Real Estate Is Back
The Top Reasons People Are Moving This Year
How the Sarasota Housing Market Benefits with Uncertainty in the World
Fix It Up Friday
Forbearance Numbers Are Lower than Expected
Just How Strong Is the Sarasota Housing Recovery?
Sellers Are Returning to the Sarasota Housing Market
Let It Go! 8 Seller Beliefs That No Longer Hold True Today!
The Beginning of an Economic Recovery
Florida's Single Family For-Sale Inventory Hits Record Low in 2Q
Sarasota Homes Are More Affordable Right Now Than They Have Been in Years
Click here to see ALL articles.