Buying a home from a builder may seem easier than purchasing a re-sale home. In reality, the process is just different. Keeping that in mind, let’s bust three common myths and tell you what agents need to know about purchasing new construction homes.
Prices of new builds are not negotiable
Yes, that is what the builder’s salesperson wants you to think, but everything is negotiable. For one thing, timing really impacts the price of a new construction home. Generally, prices of new construction homes tend to increase after each phase of the community is complete. Steering your client toward a lot in a phase still early in the stages of construction can translate into significant savings. Buyers may pay less and gain equity, as construction progresses and the builder increases its selling price. Also, empty, new homes, cost builders money. Agents may score a better deal for their clients by finding new builds that have sat on the market awhile in a development with a lot of inventory. It’s amazing how negotiable the price can suddenly become.
Even if the sales price of the home is “not negotiable”, there are other factors that offer wiggle room. Agents can negotiate with the builder to pay closing costs or to include certain upgrades rather than asking for a lower selling price. The point is—nothing is ever non-negotiable, not even new construction homes.
Pick a lot, do a walk-though, sign the papers
Buying a new construction home requires getting yourself well-versed in the stuff of new construction. This means familiarizing yourself with floor plans and architectural designs. It means learning about the options and finishes offered and becoming educated on the site design and elevations. When purchasing older homes, the house and neighborhood is established and easy to research. New construction requires understanding what is planned and being able to get a picture of what will be built. Only then can you ensure that your client is getting the house they believe they are buying.
It’s easy—a monkey could do it
If that myth strikes you as even remotely true– keep reading. As an agent, you will deal with a salesperson employed by the builder. That salesperson is all about looking out for the builder’s best interest, not your buyer. So, you have to be on top of a lot of little details you may not normally encounter in a resale home. As a buyer’s agent it’s your job to make sure that upgrades and custom features happen as agreed upon. You will have to do periodic walk-throughs of the new home during construction and again at the closing. When mistakes occur (and they will), it is on you to get together all the documentation that will compel the builder to fix whatever is wrong.
Selling a new construction home is not a short-cut to a sale. It is just a different path and it requires being educated on the issues unique to buying and selling newly constructed homes.
Whether you are representing clients purchasing new construction or existing homes, Landmark Title Assurance Agency has the expertise and experience to handle even the most complicated real estate transactions. Our residential and commercial teams bring years of experience and dedication to any deal. For more information call (602) 748-2200. or visit our website to find the office nearest you.