Frequently Asked Questions

FAQs

Do builders negotiate on price?

How long will it take for my home to be ready?

Will I pay extra if I use a Realtor?

Doesn’t the sales agent in the builder’s office represent me for the transaction?

Don’t new homes cost a lot more than existing homes?

What benefits do I get by using a realtor to buy a new home?

Is it better to buy a home in the community when it first opens or when it is almost completed?

 

Do builders negotiate on price?

Builders very seldom are willing to negotiate on the base prices of the model you are purchasing. The price you pay becomes public record. A reduction of the price for one client would require them to give the same price to every client. It also causes problems with financing for future sales, since it effects the appraisals for future sales.

However, they are more willing to negotiate on options and terms of the transaction. We keep you posted on which builders are offering deals and can help you negotiate the best deal.

Back to Top

How long will it take for my home to be ready?

The actual building process can take from 3 to 6 months. This will vary by builder and type of home being constructed. However, some communities will have longer times from the time you sign the contract to move-in based on how busy the builder is. They usually only have the capacity to build a set number of homes at one time. Some communities may take over a year to have your home ready.

There are other options available if you want to move in quicker. Most builders build homes which are not yet sold (spec homes). Depending on where these homes are in the construction process when you buy them, the home can be ready for you in weeks or a couple of months. One drawback is that you will have less control over some of the finish options for these homes.

At the end of the community’s development, the builder will sell the sales models. These are fully built and designer decorated and furnished. These can be a great way to get a brand new beautifully decorated home.

Back to Top

Will I pay extra if I use a Realtor?

Builder’s pay the Realtor’s commission and are very glad to do it. When they plan the community development, the put together a marketing plan and budget for the community. Realtor’s commissions are paid from this budget. And it is one of the most productive forms of marketing they have. It is a much cheaper way for them to get customers than almost any other marketing methods they have.

So the answer is NO. Builders will not charge you more if you use a Realtor and customers who don’t use a Realtor will not pay less. Builder’s love working with Realtors and go out of their way to make us feel welcome and part of the team in finding new homes for clients.

Back to Top

Doesn’t the sales agent in the builder’s office represent me for the transaction?

The sales representative in the community’s sales office works for the builder and does and says what the builder tells them to. Their goal is to maximize the builder’s profits. In many cases they are not Realtors or even licensed real estate agents. A Realtor is pledged to look out for the client’s best interest. It is critical that you have a Realtor represent you in the transaction. And the best part is that it doesn’t cost you anything.

Back to Top

Don’t new homes cost a lot more than existing homes?

The purchase price will probably be higher than for an existing home. However, there are a number of benefits of buying new vs used (a lot like the decision to buy a new car vs a used car):

  • Everything is new and in working order – the home will be in move-in condition
  • In the initial years of ownership, your maintenance and repair costs will be lower
  • Your new home comes with a warranty on the structure as well as appliances and mechanical systems
  • A new home will be more energy efficient due to having the latest mechanical systems and latest in building system technology
  • Your new home will have new (and conveniently located) wiring for current technology
  • You will be able to make individual choices for many of the homes finishes – no honey-do lists
  • During the first year, the builder will usually make any touch ups and repairs for items found as you live in the home.

Back to Top

What benefits do I get by using a Realtor to buy a new home?

The value a Realtor will provide, depends on how much experience they have working with new construction communities. Here are some of the benefits we will provide:

  • We will always do everything we can to look out for your best interests
  • We will research the communities and the builders for you and ensure you are aware of all the homes on the market which may meet your needs
  • We will help you understand the new construction process
  • We will work with you to determine which communities meet your needs and interests
  • We will schedule your visits to the communities to ensure the sales representatives have exclusive time to meet with you
  • We will accompany you on your visits to the communities to ensure you understand what you are being shown and told
  • We will help you evaluate the homes, lots, communities and locations
  • We will ensure all of your questions are answered
  • We will advise you on the benefits and resale value of upgrades and options
  • We will help you negotiate terms of the deal
  • We will review and explain the transaction documents
  • We will help you plan your move-in and timing for the sale of your existing home if necessary
  • We will monitor the construction process. If you cannot be present for the entire process, we will take photos and send them to you
  • We will track the flow of money through the escrow accounts
  • We will create and maintain a paper trail of the transaction for you
  • We will ensure you schedule the inspections at the appropriate points in the construction process
  • We will accompany you for all inspections as another set of eyes
  • We will be present at the closing to ensure your best interests are being represented

Back to Top

Is it better to buy a home in the community when it first opens or when it is almost completed?

Buying a home early in the community’s development has a number of advantages. You will generally have the best choice of lots. You will generally get the best price on the home – builders typically go through a number of price increases as development continues (see our monthly newsletter for examples of this.)

However, there are also some negatives to being one of the first buyers. You will have to put up with the noise and dirt of the construction process for a period of time. All of the community amenities may not be available for your use in the early stages of the community. And you always have the risk of the community failing and not being fully developed or sitting partially developed for years.

Back to Top