Most folks dream of buying a brand new home…. picking everything out and a floor plan you love. But before you sign on that dotted line you need be prepared to ask all the right questions and recognize any red flags!
–Have your own agent. All new home buyers should be represented by their own exclusive advocate (buyer’s agent) who has a fiduciary responsibility to YOU, the buyer. Remember, the friendly builder’s rep is legally bound to make the sale that is in the best interest of the BUILDER. They do not work for you…only a buyer’s agent works to protect your best interests! A builder is trying to maximize his profits in your home – your REALTOR® is working to minimize the builder profits!
–Realize that your own buyer’s agent, your Exclusive Advocate, costs you nothing. Their commission is paid by the builder (who is the seller) and is taken out of the company’s marketing budget….not the cost of the home. Use those available funds to secure yourself peace of mind that you are not alone in this journey as you head down the road of the various pitfalls that may lay before you!
–Know that your buyer’s agent will provide you the market analysis you need in order to make a reasonable offer on this new dream home that will hopefully position you to be in a more positive resale position in the future. Upgrades – those ‘shiny objects’ – can distract buyers at times and future resale can easily be forgotten. You will want an agent who provides you the information you need to not make decisions that might hurt you in the future.
–Sign a builder’s contract without your own representation by your own agent! Builder’s contracts are notoriously biased towards the builder in every detail. Did you know most of the ‘regular’ real estate contracts your REALTOR® uses are purposely created to PROTECT THE CONSUMER? No so with a builder’s contract!
–Forget your agent will provide objective, helpful advice during all of the phases of this new home purchase process. You don’t want to go it alone during:
-The myriad of due diligence needed for issues such as property taxes for the area, HOA rules and regs, statutory tax districts, propane gas service areas, securing blueprints and surveys, new home warranties on structure/finishes/appliances, the 3 necessary building inspection points…you get the point!
-Your final walk through when extra attention from ‘your exclusive advocate’ is extremely handy!
-The often-complicated lending process such as, shopping around to see if those builder’s incentives to use their preferred lender are really the best decision for your big investment and your financial future. Your agent can provide you several alternatives to consider.
-The Closing! Your agent can help clarify any questions and smooth the way on that big day so that it is a less stressful ending to your new home buying process.
Typically, this is the largest investment you will make…makes sense to use all the help and advice that is available for you! Make sure you’ve got your own advocate walking with you every step of the way. Call me at 970-903-8912 and let me help guide you through the new home journey!