So you’re in the market for a new home and decide to go looking around to see what’s out there. If you are already working with a Realtor, be sure to register them with each builder before wandering around a single home. That way you’ll start off on the right foot with the builder and it will also send the builder the message that they can’t pull one over on you....and trust me, many will try. No matter how friendly the sales rep for the builder is, ultimately they will be looking after the interests of the one signing their paycheck and that’s not you. The same holds true with the builder’s superintendants and inspectors.
There are some wonderful builders out there who build really fine, quality homes. But you’ve got to keep in mind that there are many more unscrupulous ones as well. A home builder is only as good as his contractors, and construction workers tend to follow the money. The old saying, “Here today, gone tomorrow” can really be applied to building contractors. If a new subdivision opens up in the vicinity paying more money, you can bet a hungry contractor will pick up his hammer, nails, pipes and paint brushes and join his friends down the street.
So the first thing you need is your own advocate....someone who knows the ropes and will look after YOUR best interests. If you don’t have one, you need to hire a REALTOR. Why would you NOT, when you’re about to tie yourself to a mortgage for the next 30 years of your life while doling out thousands of dollars on the largest purchase you will more than likely ever make? And by the way, your Realtor’s commission is even paid by the builder! Builders like Realtors who bring them buyers so guess who benefits....YOU!
If you’re still waffling about a Realtor, consider the following:
Builders have their asking price just like an individual seller has a list price, and your Realtor can work alongside of you to negotiate the best deal possible. We've had alot of practice. We do it everyday. Another thing, builders may tell you that you have to use their lender, but that’s not true. You can use whomever you wish but many times the builder has worked out a deal with a particular lender to wave certain fees so using their lender is sometimes a good idea. Just make sure they are not making up the shortfall in additional or higher fees some place else. Shop around to make the best choice. Your Realtor can refer you to reputable lenders.
If the home is still under construction, visit it regularly, every step of the way. Once the walls are up, you can’t see what’s behind them. Your Realtor can be your other set of eyes. And take pictures! At the very least, it’ll be fun to have a collection of photos of your new home from start to finish.
Hire an inspector. Again, the builder has more than likely had inspections done at various times throughout the building process but you need an inspector who is not being paid by the builder to look after YOUR interests. Afterall, an inspector is beholding to the one who signs his paycheck. And don’t fall for the “you don’t need an inspector because we use city inspectors" line. Again, hire and PAY for your own, independent inspector. Your Realtor will have a list of reputable inspectors to chose from. Oh, and make sure ALL appliances are installed and utilities are on prior to the inspection.
Your Realtor will negotiate repairs for you. Just because it’s a brand new home doesn’t mean everything will be in working order. I’ve seen plumbing fixtures installed backwards (hot where cold should be and vice-versa) and electrical circuits not color coded properly. I’ve seen pin-sized holes in pipes that if not caught, could have caused mold at the very least. I’ve seen drainage issues and roof issues and so many other things that were caught by our own independent inspectors. An agent friend of mine even had an inspector find a beam missing in the attic. A structural engineer had to be called in. Negotiate the repairs and then by all means....PERFORM A FINAL WALK-THROUGH PRIOR TO CLOSING. I can't stress this enough.
Once you sign on the bottom line and the money funds, the house AND ITS PROBLEMS become yours! And no one is slower at handling fixes than a builder who has already closed on a home. Keep in mind that holding off a closing is much less costly for you than going through it with the promise the builder will make good on something not done. If you hold off the closing until the house is as you expect it, the builder will be forced to get on the ball and get things done because he doesn’t want another month of interest to pay.
I prefer to take my buyers to the house a few hours prior to closing, provided they’ve been stopping by periodically to monitor the progress so there are no surprises.
HAPPY HOME HUNTING!
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