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Purchasing a Home From a Builder

Many buyers are not aware that the friendly representatives at the model home or new construction neighborhood represent the sole interest of the builder, not the buyer. Often, they are not licensed and therefore have not completed the hours of education required to be a licensed agent/broker. In addition, if they are not Realtors® , they are not required to abide by the strict Code of Ethics Realtors® must follow.

A common misunderstanding is that the buyer can get a “better deal” if there is not an agent involved. Builders pay us from their marketing budget and will not discount the price simply because a buyer is unrepresented. Having experienced representation does not cost you more money but can save you thousands of dollars.

A representative may tell you that prices are non-negotiable, but an experienced agent will use recent and historical sales data to aid in the negotiation. I will provide you with a market analysis illustrating what comparable homes have sold for so you do not overpay. On behalf of my clients, I have negotiated $50,000-100,000 reductions off builders’ list price. In addition, I can advise you on the optional add-ons and their market cost compared to the builder’s list price and advise whether these add-ons will increase the value of your home at resale. The onsite salesperson will not provide this information since the builder employs them.

Finally, the onsite salesperson will not suggest that you get an independent inspector. I advise all my clients to have a third-party, phase inspector do inspections at pre-drywall and again before closing. I also recommend a third inspection 11 months after closing, just before the 12-month builder warranty expires. I can supply you with several competent and licensed inspectors.

Whether it is a new home or resale, my extensive knowledge of builder reputations, floor plans and lots, as well as schools, neighborhoods, and amenities, will help you choose the right home in the right place with future resale value in mind.