Are you thinking of buying new construction in the Central Florida area? If you are that these are the 5 tips that will help you in that process.
Hi, I’m Jeanine Corcoran, broker for The Corcoran Connection and I wanted to share 5 tips when you are buying new construction.
Number one –
Use a realtor.
Most people say why do I need to use a realtor when I’m going in to see the builder? The salesperson working for the builder will have plenty of information about the builder and the home and they should, but they don’t hold your best interests. The builder will present a contract and you need a professional to help review it with you. A realtor is on your side, helping you every step of the way.
And, if you are buying out of state a realtor is great to have a point of contact representing you with the builder. We can help with meeting with an inspector or any number of things that need to be done.
Number two –
Know the cost of the home you want to be built.
There are all different levels for knowing the true cost of your home. There is a base price on a home and there could be a lot premium such as sitting on a pond. Then there are construction options such as adding an extra bedroom or bonus room. And, then there are cosmetic options. This is where the builder sends you to the design center if you are building your home from scratch. You must have a budget when you go to the design center, this way you are not overspending. Spend your money in the kitchen and on the flooring. These are the most important things. All other items can be added later.
Number three –
Negotiating with the builder.
Builders in general do not like to negotiate the price because they want to keep the values up with all of the other homes being sold. If there is negotiating room, they will usually give you credit to use in the design center or more money towards closing costs.
Number four –
Know your closing costs.
Every builder is different. Builders will generally have a preferred lender if you are financing where they will give you credit for using their lender. One thing that you should always do is check the interest rate compared to a local lender or someone your realtor is recommending. Sometimes the builder’s rate can be a little higher because they are doing your closing costs. This is important to know. Buyers generally pay the owner’s title policy, in resale, it is the opposite but with a builder that is how it works, they won’t pay your owner’s policy.
There can also be a 1% builders’ fee, not for every builder but some do this. These are questions you need to be prepared for and that’s where a realtor can help you!
Number five –
Hire an inspector.
Over 50% of buyers don’t hire an inspector when it comes to buying new construction. And it is their choice as generally, a buyer has a warranty with the builder. However, using an inspector helps get things fixed right away, early on. For a new build, an inspector will have to carry certain insurance and certain qualifications where they are approved by the builder.
I hoped you received value on the subject of buying new construction and the top 5 tips to be aware of and know going into the process. Call us with any questions or visit our contact us page and send us your questions, we would be happy to help!
