It all starts with the Dream of a Brand NEW Home…
First let’s ask some questions about the builder before we sign the documents and give away your non-refundable deposit.
- How are their homes built better?
- How reliable is the builder after the sale, when walk-through and warranty items need to be dealt with?
- What other established neighborhoods can you drive through that the builder has created (although this may be impossible if a builder is new to the area)?
- What is their company’s philosophy and how do they demonstrate it?
You should have nothing to fear when walking up to a resident of the community asking for real-life testimonials; in fact, a confident salesperson may even offer to introduce you to someone who recently bought the floor plan you are considering.
New homes are often sold before they’re built.
A builder will generally get financing lined up and map out both a construction and a sales process. This means they’ll try to sell as many homes as possible, before they’re even built. To accomplish this, they’ll build out model homes and allow buyers to go in and review floor plans, fixtures and finishes while the homes are under construction. Depending on the state, builders need to get through some of the approvals process before they can actually start signing contracts.
For the most part, you can get a sense of what your new home would look and feel like and where it will be located in the community. Ready to move forward? You’ll likely have to put down a deposit, from a few thousand dollars to 10 percent of the purchase price.
Quick Note Builders don’t have a personal or emotional attachment to the house.
A typical seller has lived in the home for many years, raised their family or built memories there. So when it’s time to sell, the seller may experience all kinds of issues, questions and uncertainties, which can come out in the negotiation and purchase process. As a consequence, the seller may unconsciously price the home too high because they’re not ready to emotionally detach from it. They may want to know more about you or what your plans are for the property. If given a choice between two buyers, the seller may pick one over the other for non-financial reasons.
With a home builder, they’re focused more on spreadsheets than sentiment. They want to make sure you’re qualified and can get a loan. They set the prices based on their inventory, though there may be a little room for negotiations. On the bright side you have a home that comes with a builders warranty and a house that is up to the newest energy codes. Everything is checked and then checked again to know you are getting the house you chose.