This morning I am re posting an article I found on Zillow that was written by Brendon Desimone as a guest blogger. I don’t know Brendon but his article, 5 ways to make buying a new home easier in Tooele County needs to be passed on to future new home buyers.
Brandon touches on 5 items you might want to pay attention to.
- Finding a Builder
- Representing Your Interest at All Times
- Reviewing Sales Contract
- Help Negotiating
- Choosing Smart Upgrades
So I’m going to copy the Zillow article for you with some of my comments. Hope you enjoy and find some of them useful.
Actually as I look over these 5 tips, I am going to Preface them with a sixth. This is the most important one and should be the Golden rule of buying new construction. Let’s call it tip A1.
Tip A1 is,………………..Hire a full time local agent to represent you!
Before you even start looking at the almost 100 new homes listed for sale in Tooele County ,find an agent that you can trust to help you through the other 5.That simple tip will make the other 5 easy peasey! Brandon covers that in his article but I repeat because it can be the linchpin to a great experience.
Five good reasons to have a pro on your side throughout the process.
Buying new construction seems simple, right? Just pick out the floor plan you want, choose the perfect lot, and watch it go up. No sellers to deal with, no unexpected repairs that come up during inspection, no drawn-out negotiations. Right?
Not so fast. In any real estate transaction, it’s important to have a professional on your side, even if the process seems straightforward.
“Having your own agent provides a sense of security,” says Seattle-area homeowner Kristy Weaver, who has bought two new construction homes from two different builders. “It gives you some peace of mind, knowing that someone is looking out for your best interest.”
Peace of mind is just one benefit of having an experienced agent along for the ride. Read on for five more reasons you’ll want a local real estate agent by your side when buying a new construction home.
1. Help you find a reputable builder
“Your agent can rely on their own experience and that of their colleagues to help you find a builder you can trust,” says Portland, OR-based real estate agent Kim Ainge Payne of the Realty Trust Group. “What’s the quality of the workmanship? What kind of warranty do they offer? What’s their track record of resolving issues? Getting a clear understanding in the beginning can alleviate serious headaches down the road.”
In a smaller market like Tooele Utah there are fewer builders to choose from, so picking the right one for you is more difficult, but no less important. A local agent knows which builders build a quality home, which ones deliver on time and the ones that have never met a deadline they liked.Local agents in a small market like this one have heard all of the horror stories and can direct you away from contractors that have a history of disappointing.
2. Go to bat for you
The timeline for purchasing new construction is typically quite a bit longer than buying an existing home. From the first time you visit the sales center, to choosing your layout, construction, inspections, and finally closing, there are ample opportunities for things to go sideways — think construction delays, permit issues, and financing concerns. An experienced buyer’s agent can help you navigate all of these sticky situations.
My Comments were:
Many new home buyers are reluctant to speak to builders, the builders agent or the building superintendent. Afraid that if they are a nuisance, the builder can take it out on them with shoddy workmanship or other construction related thing. I don’t think that is generally true but do know that some buyers are so hands on that they can impede the construction of the house by being too involved. That’s where an experienced agent comes in. They know what’s worth mentioning, what is part of the process and when to stand up and fight over an issue for the client. That is their job.Let them be the watchdog.
3. Help you review your contract
Even if you’ve purchased a home before, the contract for new construction is a whole different animal, and an experienced agent can help you make sure you understand everything, from floor plans to earnest money requirements, deadlines for requesting changes, and timelines for completion.
“It’s crucial to have a third party who represents your interests in the transaction,” says Dmitry Yusim, a Seattle-area agent who has represented new construction buyers. “A good agent can add the proper addendum’s to protect you if something falls through.”
While here in Utah, the state has a standard new home REPC, (real estate purchase contract), many builders insist that the buyer use the builders contract. You can imagine that that agreement drafted by their attorney, favors the contractor and not the home buyer.
I recently saw a purchase contract that threatened cancellation of the home warranty, if the new owner made any derogatory statements about the builder after closing. I can’t imagine working with a builder that required such an agreement. (or found one necessary). The state REPC protects the buyer & your agent should make every effort to use that document.
4. Assist with negotiations
Buyers’ agents know the areas where you’ll find the most wiggle room when it comes to negotiations.
“Builders are trying to keep their sales price up so that the next buyers through the door see the higher closing price,” explains agent Britt Wibmer of Windermere Real Estate in Seattle. “They’d much rather throw in closing costs or additional upgrade credits.”
My Advice Is:
I try not to work with a builder that negotiates price as a way of getting the sale in a new home subdivision. One of the advantages of buying new construction is appreciation. Watching your new house gain value from day one is a great feeling. Price reductions of similar products in your neighborhood drive down the price of your asset.
I suggest you work with an agent that can negotiate upgrades or buy downs or interest rates.
A builder that will cut the price for you will cut the price for someone else down the road and you will pay through a loss of equity. An experienced local real estate agent understands this.
5. Point you toward smart upgrade choices
Builders will offer you endless options for finishes and upgrades, and it’s easy to get overwhelmed. A seasoned real estate agent can recommend the upgrades that will get you the most bang for your buck in resale value, suggest finishes that might be cheaper to do on your own, and help you avoid over-improving, which can jeopardize your appraisal before closing.
My Take on This:
Here is where an experienced local agent can shine. They know that mark up on upgrades is huge. Upgrades are their own profit center & are often marked up over 100%. They also know which upgrades can be easily done after closing and which can’t. They also understand when changes can be made without incurring additional expense. IE: changing electrical plugs after sheetrock is taped and mudded.In other words your agent should know the value of each upgrade and if they understand your needs can be helpful in negotiating with the builder on those items.
This may be important both before and during construction. Upgrades can be used to get a “better deal” without messing with the price integrity of your new home purchase.
Even though a friendly sales representative will greet you with a smile the moment you walk through the door of the sales center, don’t forget that they work for the builder. Bring your own agent with you starting with your first visit — in fact, many builders require your agent to register with them from the very beginning in order for them to be involved in the process and receive their commission.
With a professional you trust by your side, you’ll rest easy knowing someone is there to protect your money, your time, and your new home.
I’d like to have that job! Call me, Berna Sloan 435-840-5029.
I know a lot more than 5 ways to make buying a new home easier in Tooele County.