Elizabeth Weintraub at About.com has some great tips for home owners who want to buy a brand new, built-from-scratch home, because they don’t like the idea of buying a “used” home. They don’t want to deal with the worn carpeting, the dings and dents of someone else’s life, or someone else’s taste in decorating.
Here are a few of Elizabeth’s tips for those home buyers who want to buy from a builder.
Hire Your Own Agent - A builder’s sales agent is paid to represent the builder’s interest, not yours. Get a sales agent who will work for your bottom line, not theirs. Your agent will have to split their commission with their agent, but at least your agent will help you save money on the buying price.
Don’t Automatically Use the Builder’s Lender - The builder’s lender will often inform the builder of your personal progress in your application, will offer you the deal that gives the builder the best return, and the builder may own the lending company. Your own agent can refer you to a list of independent lenders, or you may find one who will give you more competitive rates than the builder’s.
Get Legal Advice Before Buying a Brand New Home - Talk to a real estate lawyer before you sign anything. While standard purchase agreements are written to keep everyone out of court, they’re not written with your best interests in mind. Ask questions about removing contingencies and what your rights are for cancellation. Make sure the builder’s materials don’t contain hazardous chemicals. If the contract has a warning about health issues, it may be a valid concern that other buyers have sued the builder over. Do your research on those health issues before you sign.
Hire a Licensed and Accredited Home Inspector - This is crucial whether you’re buying a 100-year-old house or a month-old house. Make sure the house doesn’t contain glaring defects, like a too-small HVAC system, bad wiring, poorly-done insulation, or bad plumbing. And don’t close on the house until all the problems are fixed. If you agree to let the builder “fix them later,” they may never get done, especially if you didn’t get the list in writing.
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