#1 - Get Representation BEFORE you shop
Because the seller is a corporation and not a person, you're not dealing with a seller's emotional or circumstantial tie to the property, which directly effects the negotiating process. Whether you're designing and building a custom home or buying a home that's built on spec in a new subdivision, you'll only work directly with the builder. When you go into the sales office, sign in, and view the model homes. Your waiving you're right to representation. Remember, the representative in the office works for the builder, not for you. They have their employers best interested in mind, not you and your family’s Hire your Realtor upfront, a Realtor is someone who has a fiduciary responsibility, to look out for your best interests. Go through the builder’s contracts, explain the contingencies, which are completely different from traditional re-sale contract. A Realtor will also will work with you through the design center, the inspection stages, finding a 3rd party building inspector, and much more which can lead you to save thousands dollars. Builder’s have the expense already set aside to compensate your Realtor. hiring a Realtor does not increase the cost of your house or what you will pay for it. Most builder’s have the majority of their transactions come from realtors who bring their clients. In fact, from conversations I’ve had with [new-home buyers] who did not use a real estate professional, the opposite is true. It seems like their overall costs or concessions where not as good as the buyers who used their own agent.
#2 - Getting Pre-Qualified the Builder’s Lender vs Your Preferred lender?
Most Builders will have partnerships with lenders or even own their own mortgage company. It important to understand the advantages and disadvantages of using the builder’s preferred lender. Builder’s frequently have incentives to use their preferred lender helping with thousands towards your closing costs. Your preferred lender may not be able to match these concessions but, not all are created equal in the service you experience, loan programs offered, or loan origination fees charged. It’s very important to take a birds eye view to see what is the best option for you.
#3 - If you're not 1st, your last
Supply vs Demand A great strategy to buying a new build home is to be one of the first in the community/subdivision. When the builder has a large inventory available it’s a massive investment, which they need to recoup. Generally builders will have additional incentives towards upgrades in new communities which can change or be eliminated depending on the month. Builder’s also will typically increase their home’s base prices as their inventory shrinks. Builder’s also drive pricing with Market Appreciation and communities typically take several years to be completely built out, during this time builders take advantage of the natural appreciation of the real estate market. Usually the first people to buy into a community get the best deal. There are so many more points to talk to when it’s comes to new construction but, it’s a very smart idea to have these intentional discussions with someone who has been through this process 100’s of times.