If you’re considering buying a new construction home, it’s important to utilize a real estate agent that is intimately familiar with the pros and cons of this type of real estate purchase. Contact us for more in-depth information about new construction, before you buy.
DO: Have Your Own Agent
Many new construction buyers choose to use the builder’s salesperson or agent to guide them through the transaction. This can be a big mistake. Remember, the builder’s agent or salesperson’s fiduciary responsibility it to create the best deal for the builder, not you, the Buyer. Using your own Buyer’s agent, however, will ensure your best interest is upheld. A representative who is bound to you by a fiduciary responsibility has a duty to act solely in your interest.
DON’T: Get Steered Into Using the Builder’s Lender
When the lender and builder have an existing relationship, you as the Buyer, are incented to use that lender. This means that the lender doesn’t typically have to be as competitive, since the business is steered their way. Always check with another lender to be sure that you’re getting a good rate and a fair deal. Keep in mind too, that while the consumer is ultimately the customer of the lender, the lender may tend to look out for the interests of the builder. This can be an obvious downside to you, as the customer. Often, a builder will incent the buyer to use their preferred lender in exchange for closing costs contributions or upgrades. This may seem like a great way to go, but if the interest rate is higher over the life of the loan, the costs could be far more, long term. The Donnelly Group works with a number of local lenders that you can use to compare and ensure you’re getting the best deal.
DO: Consider the Reputation of the Builder
Don’t take the building company’s word that they build quick, efficient, and high quality homes. Look into past projects they’ve completed and ask for testimonials. Folks that have lived in the neighborhood for a year or more often have first-hand experience with how the builder handles and addresses warranty issues. This could provide valuable insight before you buy rather than after.
DO: Understand Your Customization Options
A major perk of new construction homes is the wide range of customization options. The owner can fill the home with any upgrade the builder offers – at a price. If a builder offers you a “free” upgrade, look into the hidden costs behind it, such as a higher loan interest rate. Your agent can be an invaluable resource in these scenarios.
DO: Call The Donnelly Group
The Donnelly Group’s team has over 40 years combined experience with new construction. For questions concerning a new construction home, call us at (443) 308-4918 or contact us online. The Donnelly Group is devoted to being your guide, your expert, your resource, your advocate.