10 Tips to Save You Time and Money When Buying a New Home

10 Tips to Save You Time and Money When Buying a New Home
Lucas Smith
Wednesday, October 26th
By Lucas Smith

1. Get in touch with your agent

Before you visit your first model home, sit down with your agent and do your homework. Having an agent to represent you and your best interest is always the right move and the builder will compensate them for doing it.

2. Sellers' agents versus buyers' agents

Here's a good point to remember. The sales agent in the model home represents the builder, not you. While they are nice and knowledgeable about their products they represent the builder at all times. Again make sure to bring your agent to represent you whenever you walk into a new home build otherwise the builder will not let them participate in the transaction and you could be left without representation. 

3. Get the facts about your builder

Don't be afraid to roll your sleeves up and do some digging on your builder to see if they have had any or lost any major defect or class action lawsuits regarding their products if so how many and how often. Before making a final decision, it is wise to check out the reputation and financial strength of the builder as you will be relying on them to remain in business and honor any warranty they have provided with the home.

4. Check out the neighborhood

Learn as much as you can about the community. This might seem like a no-brainer but I have seen this time and time again builders build where land is cheap and sometimes you might not want to live there. Check the schools and the local crime reports. Do your homework, it's easy to get blinded by a shiny new house!!!

5. Choosing options and upgrades

The least expensive the base price of the house is, the more options and upgrades you can add without fear of overpricing it for the neighborhood. This being said understand that with all the builder upgrades that increase the purchase price of your home and therefore the taxes you pay on it you might just be better off buying the lowest price base model home and adding your own upgrades later. 

6. Negotiations

Often buyers don't realize that there may be room for negotiating prices. Don't be afraid to ask for the builder to take less than their asking price; the worst thing they will do is say no. Again it helps here to have a professional agent representing you in the negotiations. 

7. Standing inventory

With the market changing interest rates many builders have been left with half-built homes and no buyers for them as the buyers that they just a few months ago had long waiting lists of have dwindled away to nothing. For the savvy new home buyer willing to accept someone else's upgrade [package you might be able to get a fantastic deal!

8. Be sure the contract works in your favor!

When spelling out the particulars of an agreement with your builder, ensure you protect yourself. All builders' contracts will be structured in the builders' favor and the builders' best interest. Watch out for things like non-refundable deposit clauses!

9. Financing

What's best for you? Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages. Now with interest rates going crazy, many builders' incentives are offering tens of thousands of dollars in rate buydowns and discounts.

10. Just because it's new, doesn't mean it's perfect

Yes, it's new and typically it's built with modern materials that are durable, low maintenance, stronger, quieter, and safer. Still, do your due diligence and a basic home inspection, and make sure that the home that you buy is the home that you want. 

If you need help or have any more questions about these points, feel free to call us at 714-406-1414.