Having a home built for you can entail many unexpected costs and expensive upgrades. Buying a brand new home is a big decision and an important investment and there is a lot to think about. New homes may offer you the opportunity to customize the home to match your personality.
Many factors influence builder pricing, while here are a some of the top categories that impact builders the most:
· Cost of the land
· Size of the home
· Cost of the building materials
· Labor costs
· Real estate market conditions
· Builder impact fees
New construction can offer a great opportunity to find the perfect home for you as the buyer, but purchasing from a builder is a lot different than buying re-sale homes. What should you, as a new construction home buyer, know about buying new construction homes?
1. Why you need a New Construction Buyer’s Rep
When purchasing new construction, there is a common misconception among buyers that the process is pretty straightforward: walk into the builder’s office, pick a lot and design, and sign on the dotted line. Builder contracts and the building process is different from what most real estate agents deal with on a daily basis, so having a Buyer’s Rep with new construction experience is important. As the buyer of a new construction home from a builder, it’s my job as your real estate agent to negotiate if “your” best interests and not the “builder’s” best interest; the buyer is not represented by the builder’s salesperson and will be taking a big risk with what is probably one of the biggest investments of your life.
2. Prepare to negotiate
The builder’s salesperson will usually give the impression that sale prices aren’t negotiable. They don’t change on sale price , for instance, and may instead offer to pay closing costs or provide design upgrades.
3. Another important thing is the timing of the sale
Knowing when it’s best for clients to buy or to hold off can save your clients a lot of money. If a new phase of construction is set to start, this can mean the purchase price of properties from the previous phase is set to go up. Reserving a property before that can mean big savings for buyers—as well as instant equity. As a buyer’s agent, you can seek out builder inventory that has been on the market for a while—and you can often negotiate a good deal.
4. Be fully aware there are always additional costs
Make sure you as the buyer knows that most upgrades usually come at a cost. When touring the model home, find out exactly what options are standard and what upgrades are available for an additional cost. This will help to avoid any surprises later on.
5. Knowing the key elements unique to the new-home market
Elements unique to the new-home market, including architectural design, blueprint reading, site design, construction methods and materials, and so forth, are usually not things buyers are well versed in. As a Licensed Realtor + General Contractor, these skills are some of the unique services that I will provide to help you buyers with the purchase of their new construction home; as well as helping you choose the best lot or make sure the construction drawings match the home you are expecting to be built.
The bottom line: New construction offers exciting opportunities for buyers. When purchasing a new construction home, make sure your interests are best protected and hire a Licensed Realtor + General Contractor to help you with the entire process.
Scott DeVore is both Licensed as a Realtor + General Contractor and he specializes as a New Construction Buyer’s Representative. If you are interested in purchasing a new construction home in Jacksonville, St John’s County, or anywhere in the Northeast Florida metropolitan area, contact Scott today at 904-746-0050 or firstname.lastname@example.org.