New Home Builders Pave The Way

The demand for newly constructed homes is tremendous; and builders are enjoying this sellers' market. They are setting the price and value in their subdivisions and profit margins are high. So how do you, as the buyer, navigate the maze of buying a new home?

Research is key. I know that all builders are not created equal. I sold new homes for a builder for 7 years and understand their programs.

Just because a builder has signs in place, a nicely appointed sales trailer and a friendly, bright salesperson does not mean that you are going to get a good house. I believe you have to be very careful in this rushed market. The demand is so high and as a result, the builders resources are being stretched to their limits. That means they are trying to build too much too fast and qualilty can take a hit.

Take a ride through the community and construction site. Try to talk to some of the tradespeople, construction superintendants and possibly newly settled buyers. Ask if their home was delivered on time, were there problems with quality, workmanship or even the builder's lender. Does the builder do what they say they will do? Who is the developer? The developer is the company that takes the land from a raw state and gets it through the development process and sells finished lots to the builders. Just like builders, there are some developers that are much better than others.

Remember, that the new home salesperson works for the seller. They are watching out for the seller's best interest. It doesn't mean they don't care about you, they just serve the hand that feeds them first. Just because a builders asking price is printed and offered does not mean it is a fair price. Have someone check the recently settled homes in the .resale market that are fairly new and similar to the one you are buying. You may find over $100,000.00 differences.

Read the entire contract. Yes, I know, it's long and tedious; but, you are responsible for the content. The bells, whistles and buzz can reel you in so be careful.

Consult a local realtor that has new homes experience. Good luck!