Have you been thinking about buying a New Construction Home in the Tampa Bay area? No matter where you are looking – here are the top 7 reasons to hire a Real Estate Agent when buying a New Construction Home.
- See all the New Construction Options. You know you want a new home, but when you walk into a builder’s model, you are only seeing the lots and homes that a particular builder offers. It can be confusing for you when you go into a model home and sales representatives provide all of the information and answer your questions, but remember they work for the builder and you should want someone representing you. As your agent, I can show you all of the available lots in the area and can introduce you to multiple builders and models so you can make sure you are picking the builder that can build you the home you want, within your budget.
- Representation Do you know that the builder’s representatives typically only represent the rights of the builder? Hiring your own agent first ensures that someone has the fiduciary obligation to represent your best interests. Without hiring an agent, you are on your own. As your agent, I would represent you all the time on new construction purchases and help answer your questions. Many Realtors like myself are familiar and specialize in new construction, and our input is valuable, as we respect and listen to the builder sales representative, we are always listening to protect your interest. And the builder typically pays our commission and doesn’t affect the price of your new construction home.
- Understanding the Different Costs of New Construction You may see that roadside sign that says “Houses Start in the 200s!” Then when you go into the model home, everything available is priced closer to $300,000? That’s because the advertised price is for the cheapest model, with no upgrades or lot premium.
- CONSTRUCTION OPTIONS – Does your builder offer a bonus room option or the option to change a living room to a den, or that extended master bathroom? Different Ceiling height choices, extended liane covered or screened in?
- COSMETIC OPTIONS – These are the fun ones! Going to that design center to pick out your floors and cabinets can be the highlight of the building process, but you can also get a big dose of sticker shock. Lighting packages, do you need those ceiling fans or pendant lights from the builder or just make sure the wiring is there.
- Know your rights. Most builders have their own purchase agreements and addendum, designed to protect the builder. Without having an agent, you may be signing a legally binding document that you don’t understand or even worse, have you giving up your rights unnecessarily. Find out if there are HOA or CDD fees in this new construction community. Understand your Escrow deposit fees and if there is a cancellation clause.
- Negotiating & Closing Costs Builders don’t like to negotiate their base prices, they have to keep them similar because they are selling lots of the same models. As long as people are buying their homes, they have no reason to negotiate the price. However, builders are more receptive to negotiating “things” or “credits.” Instead of asking for a $10,000 reduction in the price of the house, have your agent ask for a $10,000 credit at the design center that you can use for picking out that gorgeous kitchen. Every builder is different, but no matter which one you go with – pay very close attention to the closing costs. Most large builders in Florida push all of the closing costs (except for the real estate fees and a few others) over to the buyer’s side. This can be thousands of dollars in extra closing costs that you wouldn’t be paying if you were purchasing a resale house. You can also ask for a closing cost contribution. Not every builder is going to give you credits. It depends on how popular their product is, but it certainly doesn’t hurt to ask.
- Know what to expect during the transaction. As an experienced agent, I have been through this process many times. I will let you know what you can expect during the home building process will alert you to red flags along the way. Say your builder estimates that it will take four to six months to build your house. That is their goal, but in reality, they can never be entirely sure when that house will be completed. Builders have to deal with weather issues, materials being supplied in a timely manner, contractors doing work correctly, permits, inspections, and so much more. It is a lot to manage and everything doesn’t always move along smoothly. I hope this information helps all of you out there thinking about buying a new construction home. As your agent, I will help keep the entire process on track and work with the project manager.
- Work with the same agent to sell your home. Many new construction home buyers need to sell their current home before they can start the building process. As your agent, I help you time the market and price and stage your home appropriately to keep you on track to reach your new construction goals.
If you are interested in purchasing a new home in the Tampa Bay Metro area contact John Warner at Keller Williams South Shore today to learn more about the process of buying a new construction home.