There are many reasons that a home buyer may decide to go with new construction over a resale home. No bidding wars means less competition among other buyers. There’s the opportunity to customize your home, and the fact that everything is new results in lower maintenance cost. However, there are common myths people are confused about regarding buying new construction.
Here are three myths I’m here to debunk about buying new construction homes.
#1 You do not need a real estate agent.
When you are buying new construction, you should first seek advice from a professional. You should even get your own real estate agent! Though, it is easy to work directly with the builder, a real estate agent will negotiate customizations, floor plan modifications, and will get you the best cost for your upgrades. Many people believe that using a real estate agent prevents them from getting the best price or the best incentives from the builder. This is not true! The builders have already built in the commissions into their marketing and/or sales price of the home. They will not offer you a better deal because you’ve chosen not to work with a real estate agent. The commission saved will go back into their pocket – not yours!
A real estate agent can help you negotiate the things that you’re not as savvy about. Remember that the selling agent works for the builder and has their best interests in mind. You need someone representing you and your best interest! Making this the #1 myth when it comes to buying new construction.
#2 Too many Options, too many Decisions
Some are overwhelmed by the thought of building a home from scratch. Having to select finishes, floorplans, modifications can be a daunting task for some. However, when you choose to work with a builder, they have narrowed down many choices for you. For instance, would you prefer white, grey, or wood stain cabinetry, the standard granite, or upgrade to quartz? Builders often have design centers, making the process very streamlined. Take your agent, so they can help manage the budget and make choices that will help build value in the long run!
There are some value builders who are simply offering the new homes in the specs they have already selected. This helps them buy in bulk, save on cost and pass on that savings to you. Builders may also have move-in-ready homes or homes 30-60 days from completion.
You do not have to pick each and every feature of the home. A lot of times you can be as involved or as uninvolved as you like. Pick a house that’s move-in ready or go with an undeveloped lot and build from the ground up, selecting every finish. It’s totally up to you.
#3 New construction does not need to be inspected
Any savvy realtor will encourage you to bring in your own 3rd party home inspector. Building a home is a complex process that involves several different subcontractors and many employees. It’s possible for something to be overlooked. Even the best builders with the best intentions can make mistakes. A 3rd party inspection will double check the builder and give you peace of mind. This is not the place to pinch pennies! Don’t let the builder try and talk you out of your own inspection. Instead, save your family a lot of headaches and hire an inspector. Making this our final myth about buying new construction.
Interested in purchasing a new construction home? We would love to guide you through the very different process to home ownership!
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