The process of buying and selling real estate can be complex. While most people are familiar with the ins and outs of the resale market, investing in a new construction home can be confusing.
It's important that you work with a real estate agent who has experience handling new construction properties if you want to avoid mistakes that could jeopardize the validity of your purchase.
1. Builder Contract
Most new construction properties are owned by the company responsible for building them. Purchasing from a builder poses some unique challenges. One of the most significant challenges is navigating the builder contract.
A builder contract is created by the construction company and serves as the foundation for any purchase involving a new construction. Your real estate agent will need to be able to identify your rights as a buyer within the contract to help you make an informed decision.
Builders want to sell the homes they are constructing as quickly as possible. This often means giving potential buyers a tour of a model home and making a sale based on that model. Many new construction buyers do not physically see the homes they are purchasing until after the sale is complete.
An experienced real estate agent will be able to help you identify which features in a model home are considered basic and which are upgrades. You will need to factor in the cost of upgrades into the purchase price if you want your residence to resemble the model home.
A construction company will often sweeten a deal with incentives in order to make a sale. Real estate agents who don't handle new construction properties on a regular basis may not be aware of all the incentives available from a specific builder. This could cause you to miss out on valuable upgrades that will help make your future home more appealing.
Many builder incentives can also reduce the purchase price of a home, so having an agent who doesn't take advantage of these incentives could be costly. If you work with a real estate agent who handles new construction sales on a regular basis, you can rest assured knowing that you are securing the best possible deal on your new home.
Investing in a new construction home can be exciting. You have the opportunity to customize certain elements and be the first family to live in the property. Partner with the right real estate agent to make your new construction purchase a positive one.
To learn more, contact a new construction real estate agent.