There are a lot of new home subdivisions and developments popping up all over the Puget Sound and I’ve sold dozens of buyers brand-new construction and in all that time, there are some tips and secrets to know about saving money when buying new construction and what to look for.
Builder pricing is affected by location, cost of the land, the size of the home and the cost of building materials but the market conditions also play into the pricing. Buying a new home is usually more complicated than a resale property. Many buyers think that there’s absolutely nothing wrong with new construction and they can waive the home inspection but this is not a good idea. Builders and contractors make mistakes as well so it is imperative to have a home inspection even if the home is brand-new and has never been lived in.
As a buyer, you also have to understand the builders are not like your typical homeowner seller. They’re not emotionally attached to the property and they make decisions based on what’s best for their bottom line and for the overall profit of the subdivision or development. Because of this, builders usually do not reduce their prices because if they do, it will set a precedent for future home sales. So how can you, the buyer, save money?
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For starters, always use your own real estate agent as buyer representation. If you go with the agent that sits the model showroom or open house, you’re working technically with the builder or developer. The developer has hired a buyers agent for the sole purpose of getting you to buy that home. When you have your own agent that has no ulterior motive or biased approach, you know that your needs, concerns, and budget are at the top of their priority list.
You want to make sure you get everything in writing. This seems obvious but listing agents and developers can throw out promises all over the place but in less than writing, they don’t need to stick to any of them. Many large builders will have their own lengthy, attorney-written, intimidating-looking purchase agreement the cover everything so having your own agent and even more so, your own real estate attorney that looks over all of these documents, you know you will be protected, especially if you don’t understand all of the legal new construction jargon.
Read More: 5 Red Flags That a Real Estate Transaction is Too Good to Be True
Consider purchasing the model home. You might think that you don’t want this home because of the hundreds of people that of probably come through it and isn’t that the point of buying a brand-new home anyway? Knowing that you are the first person that will live there? However, there are some great benefits to buying the model showroom home. For starters, this means that building is done. If you are the first one to buy new construction in a property understand that you will be hearing construction noises for probably up to a year or more until all of the homes are finished. They only sell the model home once the development is done.
Also, you might get a better deal on the model home. These model homes have some of the highest materials and upgrades so you might get a great deal without having to worry about updating or upgrading any of the materials in them. These gently use model homes are usually a good deal and they tend to sell for market value if you do need to resell within a few years.
Consider the builder’s lender. Builders love it when a buyer uses their preferred lender. You might have incentives or certain discounts simply by using their lender and as long as the numbers work out, there should be no problem.
Read More: Hidden Things to Look for in a Real Estate Listing
Again, one of the biggest keys that I can suggest is having your own agent. Your own real estate agent will be able to answer questions for you on your behalf, represent you, and be honest with your priorities at heart.
Ready to look at some new construction homes on Mercer Island or around Bellevue in the east side? Give me a call for a complete list or simply contact me here and I will email you a list today.
