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Don’t Buy New Construction Until You Read This!

New Construction Part 1

Don’t Buy New Construction Without Your Real Estate Agent

 

I’m excited to start this series of posts focusing on purchasing new construction. Being a former insider, in the home building industry, I’ll shed some light on buying with a builder. For many years I worked for residential and commercial developers, here in Sarasota. From behind the scenes, I prepared construction documents (blueprints), applied for and managed building permits and worked closely with builders to complete homes. A lot of homes. I know the ins and outs of the business and I know where problems pop up and how to avoid them.

 

This article will cover the importance of working with a Real Estate Agent when purchasing new construction. Rest assured, there is no big conspiracy in the real estate industry to repeat over and over that you need an agent. Yes, we do repeat this a lot, but only because it’s true. You DESERVE representation when making, what is probably, the biggest investment decision of your life. We want to help you, it’s what we do for a living.

You’re Ready To Start Looking!

 

So, let’s say you’ve decided to purchase a brand new home! We’ll skip over the part about how you chose your builder. That’s a lot of territory to cover for another installment in this series.  Anyway, it’s a beautiful day and you decide to stop into that new neighborhood you’ve been eyeing to and from work. Just taking a quick look around, right?

 

Well, this is where it can get tricky. When you walk into a model home and a sales representative greets you, they’re there to help you. They answer all your questions and give guided tours of available homes in the community they work in. They have beautiful brochures and have been highly trained in company policy. And each home builder has different company policy.

Remember, You’re Buying From A Corporation

 

Sales representatives have a goal. It is driven by their sales manager that is driven by upper management all the way up to executives. Sales are projected for the year, and it is up to the person you meet in that model home to help make that goal. They take your information and register you in their system. You’ll be asked to sign on the dotted line and be tempted with incentives that are expiring soon. The pressure is on and you don’t want your opportunity to slip away and this person is trustworthy and extremely helpful.

 

Representation

 

This is when working with an agent is more important than ever. When you buy new construction, you’re signing a sales contract that has been prepared by the home builder’s lawyers with their interests in mind. They do not deal with the standard real estate contracts used in the purchase of a resale home. The sales representative you are meeting with is trained to handle every objection you may have. If the right questions aren’t asked you run the risk of losing out on even more incentives. It’s possible you may miss out on upgrades or valuable savings a real estate agent would ask for.

Your agent becomes a valuable resource, if you’re purchasing out of state. They will be able to monitor the progress of your home and send weekly photos and in the event you cannot attend walk-throughs outlined in your purchase agreement your agent will be there to represent your interest.

The good news is that most builders value their relationship with local agents. There is no extra cost to you to have representation on your side, when buying new construction. A common misconception is that a builder will reduce the price of the home if you buy directly from them. This is simply not true and a sales representative that eludes to this is misinformed. If you’re thinking of buy new construction, call us first at 941-927-0111 and let’s get started!