There are many do's and don'ts when it comes to real estate. Buying new construction may be something you have never experienced before, and there are a few ways to make the process easier. One of those things, is working with us! 😉 There are also a few things you want to avoid, not do, and not be fooled by throughout this process. Today, we share 5 of the things you want to not do when buying or building new. If you have any questions on this information, we are always here to help!
1- don’t sign anything or fill anything out
When you visit model home sales centers, there is usually a form that the salespeople want you to fill out in order to register. This form captures your personal contact information and might ask some general questions about your home search. Don’t feel pressured to fill it out!
If you have a realtor with you and they explain the form so you feel comfortable completing it, then go ahead. If you are on your own and just beginning your search, say you’d prefer not to fill anything out just yet. Sometimes, if the forms are completed on your first visit and you didn’t bring a realtor with you, it makes it difficult to get them involved in the transaction later on. Also, the salespeople may send you emails and text messages about the community and the information can get overwhelming. Let your agent do the research and weed through all that info for you!
2 - don’t share any personal info or opinions
When looking at the models (or any home) don’t share your personal information or opinions in front of the salespeople. You want to put yourself in the best position to negotiate and revealing all the details about your financial situation, timing, and thoughts about the house could weaken that position. Definitely share that information with your realtor privately, but don’t have those candid conversations until you are alone. Let the salespeople wonder what you think about the house!
3 - don’t expect the traditional real estate contract
If you have bought or sold real estate in a traditional resale transaction, there was probably a common state-wide or commonly used contract that all realtors were familiar with for those residential transactions. However, when you go the new construction route, each builder has their own unique contract that they utilize. Your realtor should be able to review this with you and point out the important details and differences at this phase in the transaction. It may be much longer than a residential resale contract, so use them as a resource to make sure you understand it before signing!
4 - don’t be fooled by the “base price” & don’t expect your home to look like the model
We have mentioned it in previous videos but to recap, the price listed on builder websites and advertised on signs around the community is the “base price” of the home. If it were delivered empty with basic interior finishes and floating in the air, that would be the price.
If you want to actually build on planet earth, there are additional costs like the lot fee, interior options and upgrades, pools, etc. So that initial price is very misleading. Along those same lines, the detail and finishing in the model homes can be deceiving. Your home will be built with standard walls, basic ceilings, paint, floors, cabinets, and maybe appliances. Any fancy trim or detail, as well as nicer floors and finishes, are all upgrades that cost more money. Keep that in mind when considering a budget!
5 - Don’t discount the element of timing and how important it is
Real estate transactions follow a process and have many steps. From start to finish, timing is very important. That includes the timing of finding a community you love, building the house, selling your current house, making design choices, moving in, and everything in between. All of those steps are like dominoes and if one gets stuck or doesn’t fall in the right order, it de rails the entire process.
You want to start by talking to a lender and figuring out finances. Can you even buy a house? When can you sell your house within the process to make it work? Most builders won’t take a contingency on a sale, so that is a very important timing element.
Then, decide on the community and if you need to build or buy inventory. Building takes at least 6 months, sometimes up to a year with a custom builder. All of that timing needs to be considered!
All in all, the process of buying or building new can be confusing and overwhelming, so it helps to work with a great realtor who understands it, can help make it less stressful, and has your best interests at heart. This video shared some things to NOT do, but one of the most important things you CAN and should do is find a great agent to work with.
If you’re looking for a home in Lakewood Ranch, we would love to be that agent for you!