When it comes to buying a home, it is all relatively the same process, the difference is within the details! We have had a lot of questions about new construction homes lately from our buyers and clientele, so this article is to help breakdown new construction, the differences between buying new and resale homes, and what you need to look for!
#1 THING TO REMEMBER: CONTACT YOUR REALTOR WHEN BUYING NEW CONSTRUCTION!!! There is a lot of misconception around new builds and using real estate agents, which can hurt you down the road if you do not know the difference between buying with an agent and buying from the developer.
DO YOUR RESEARCH
The biggest thing to do when thinking about new construction is to do as much research as you can. Research the spec homes they have models of, research the developer(s), research the neighborhood and surrounding area, etc. The best way to go about doing this research is to start with a simple google search, ‘top builders in orlando’ or even ‘best builders in central florida’. While this can be time consuming and unappealing, it is going to pay off in the long run with guaranteeing that you know the business you and your agent are working with.
Make sure you pay attention to any reviews, past projects, their brand and morals, etc. You may be able to find current residents of those builders and reach out to them to get your feedback! This will not only give you a sense of how the builders do business and the experience others have had, but you may even meet your new neighbor and get an early start on developing that relationship! When doing this, make sure you right down a long list of questions to ask the builder when you finally meet. You want to know everything there is to know about the builder, their homes, and their plans for the development!
USE YOUR REAL ESTATE AGENT!!!!
We cannot stress this enough, MAKE SURE YOU USE AN AGENT!! Recently we have had a few of our past clients buy new construction with out using us as their agents, and when we reached out to find out why, the buyers claimed to not know they were able to use an agent with new construction. THAT’S RIDICULOUS!! Not only is using an agent your best option, but there’s nothing in the rule book that says you can not use an agent to buy from developers.
The main misconception about this is that if you show up to a model home with out a realtor, the developer may no longer do business with an agent because you brought yourself without representation, they want to take advantage of that. The best way to view new construction is to reach out to your agent first, and let him schedule everything.
The reason you need an agent is because your agent works in YOUR best interest, not the developers. Most people also think they have to pay to use an agent, but in reality, when using a buyer’s agent (who has fiduciary responsibility to keep your best interest in mind at all times) the seller is the one who pays the agent’s commission, not the buyer. In this case, the seller is the developer. If you go alone and without representation, you will find a developer that wants to sell a home to you at full price and will not consider the negotiation that you deserve. So make sure you contact your Brown Home Group agent to get full protection, a solid negotiating partner, and the ability to look at other options that new communities can offer.
Make sure everything is in writing!
When working with builders, thinks can get messy sometimes. Not only do you have a lot going on but so does the builder, everyone has their own problems and jobs to take care of. One thing that can happen often is that a builder offers you something or makes you a promise and then when you go back, they have retracted the offer or promise. The best way to guarantee you get what you’re promised is to have everything put in writing! When you have an agent, they will make sure this gets done and takes that task of your plate. The agent will make sure you have all bases covered, since when buying new construction, what you’re buying isn’t always built just yet. Things like the specifications, completion date, home warranty, etc. should all be included in any paperwork you obtain.
If you have any questions about buying new construction or buying/selling real estate in general, always feel free to reach out to the Brown Home Group at Keller Williams Advantage II Realty. We have a team of agents that can help with any and all of your needs and wants when it comes to buying or selling a home.