Not Understanding Who the Site Agent Represents:
The sales agent for new construction solely represents the seller (builder), and ultimately, looks out for their best interest. They are there to sell you; it isn’t their job to make sure you are getting a good deal. Whether you are a first time homebuyer or have previous buying experience, an exclusive buyers agent can be a powerful ally throughout the buying process, from lot selection to choosing upgrades that will enhance the value of your future resale. You may feel that the site agent should look out for your best interests, don’t be fooled, choose an Exclusive Buyers Agent for expert advise, counsel and 100% representation.
Believing that Builders Do Not Negotiate:
In today’s buyers market, many builders not only have an excess of inventory that they need to sell, but are also facing more overall competition. Although some builders are offering great incentives up front, the current market provides a buyer with a stronger negotiating position in terms of upgrades, options, and possibly price. Working with an experienced negotiator can end up saving you thousands.
Using Builders Preferred Lender Without Shopping
All mortgages are not created equal! When financing your new home you should research lending options by shopping with several lenders. The builder may offer you special discounts, such as no closing costs or money towards upgrades, for using his/her preferred lender. This may sound great up front, but you want to insure you’re really gaining a long-term benefit by going with the builder’s lender. Bottom line, by shopping your loan you will find out if you are getting the best rate, the lowest closing costs, and the program that best suit your financial needs and goals. By NOT taking the time to investigate you may end up paying thousands of extra dollars over the life of your loan. Feeling comfortable and confident with the person directly handling your loan is also important and should be a factor in your decision.
Not Having the Building Inspected:
It is worth the cost to have a top-flight home inspection. This is cheap insurance, which can save you significant money in problems that were built into the house. We recommend both a pre-drywall and a final inspection for new construction. During the pre-drywall inspection, the electrical, plumbing, and ductwork can be inspected prior to the instillation of the sheet rock, which is a real benefit over resale properties as the walls are already in place. The final inspection covers the five major components of a home: structural integrity, roof, heating and air-conditioning, electrical, and plumbing. New homes may have just as many problems as older ones. How would you know if the builder failed to use plywood clips for roof sheathing or that the gas valve on the furnace was malfunctioning? Do not just assume that the builder did not make any mistakes during the building process. Also, the home inspection will offer valuable maintenance tips. We recommend you attend the inspection to get the full benefit. Your buyer’s agent can make some recommendations, on inspectors who should be bonded, insured, and certified.
Not learning About the Plans for the Neighborhood:
Before signing a contract on a new home, take the opportunity to research information on the development and surrounding area. A Home Owners Association (H.O.A.) will govern the majority of single family, town homes, and condo communities once a majority of the homes have closed. Buyers pay dues to the association, usually on an annual basis. Verify the cost of the dues and what they included, as subdivisions will differ. It is also a good idea to request a copy of the budget even if it is only proposed to see where dues are being allocated. This will also show you whether there are reserves to cover any major costs so each homeowner will not be assessed for any shortage of funds. It is also important to investigate surrounding acreage, to determine it’s zoning. You want to be cautious if it is zoned commercial. The neighborhood may be less desirable if you find out found out that the acreage across the street could be bull dozed for a new shopping center. Consider the surrounding growth and its type, as this may affect resale. Make sure you feel comfortable with the kind of lifestyle the neighborhood is going to provide you.
This information is the opinion of Charleston Real Estate – the Real Buyer’s Agent, If we can answer any questions for you or provide you more information please contact us.
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