New Construction Overview

 ways to save money when buying a new construction home

The new home construction  journey takes time and planning.

Planning is critical to the success of the build experience! After signing the contract, understand that there is still very important work to do before breaking ground. There are builders that will jump right into construction and will plan as they go, and builders who have their clients participate in a more structured process.

I've worked with many builders and countless new construction buyers. As a result, I have put in place a more guided process that enables better communication and planning for a more successful build experience.

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Expect turbulence

One thing I have learned from taking multiple flights, is that turbulence on a flight is to be expected. It can vary in its duration and intensity and isn't always the most enjoyable thing to experience. The pilot didn't cause the turbulence. There are many factors outside the pilot's control that can cause the sometimes bumpy ride.

As mentioned, I've worked with many builders and buyers and the one constant amongst every new home experience and across all builders is a certain amount of turbulence along the way. Whether you purchase a home that is already build or you purchase a home to be built just for you, neither comes with a guarantee of smooth skies ahead. Sometimes, despite all of the planning and systems in place for a smooth flight, there are conditions outside of our control that can cause a few uncomfortable or bumpy moments along your journey. Everything from a sudden change in building code to a discontinued cabinet color. Expecting a bit of turbulence along the way helps make that turbulence a little less stressful when it does happen.  The communication and planning process I've put in place on this website platform is intended help create smoother skies and less turbulence when possible. 

The new home construction  journey takes time and planning.

Planning is a primary factor to the success of the building experience! There is very important work to do before breaking ground. There are builders that will jump right into construction and will plan as they go, and builders who have their clients participate in a more structured process.

I have worked with many builders and countless buyers building new homes. As a result, I have put in place a more guided process that enables better communication and planning for a more successful building experience.

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Expect turbulence

Building a home can parallel taking a plane flight with the builder as the pilot. It can vary in its duration and intensity and is not always the most enjoyable thing to experience. The pilot did not cause the turbulence. There are many factors outside the pilot's control that can cause a sometimes bumpy ride.

As mentioned, I have worked with many builders and buyers and the one constant amongst every new home experience is that there will be a certain amount of turbulence along the way. Whether you purchase a home that is already built or you purchase a home to be built just for you, neither comes with a guarantee of smooth skies ahead. Sometimes, despite all of the planning and systems in place for a smooth flight, there are conditions outside of our control that can cause a few uncomfortable or bumpy moments along your journey. Everything from a sudden change in building code to a discontinued cabinet color. Expecting a bit of turbulence along the way helps make the experience a little less stressful when it does happen.  The communication and planning process I have put in place is intended help create smoother skies and less turbulence when possible. 

Prepare for landing

As the long flight comes to an end, you will begin to see a flurry of activity. Flight crews, air traffic control, grounds crew and pilots all have important jobs to ensure a safe and successful landing. If a passenger could take a peek into all of the work and communication that occurs during the final descent, they could probably sum it up to one work: BUSY!

That same word could apply to the final 45 days of the new construction experience.

If ever there is a time when the homeowner begins to doubt the process, it is at this stage. They look at all of the work yet to be done and believe that it is simply not possible. Anticipate a flurry of activity amongst builder, subcontractors, lender, title companies, building inspectors etc., working through the final quality control checklists in preparation for Closing. Take a few deep breaths and remember that we have dealt with this "landing" hundreds of times before. We understand it may be your first landing and promise to offer all of the help and reassurance that we can along the way. You are almost home!

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Unless there is a real problem, let yourself see the beauty

After completing the long journey to your new home, choose to see the beauty! There will be imperfections. I have yet to see a "perfect" new home built. Try not to be the homeowner that is on hands and knees crawling the wood floor in search of imperfections. Or the homeowner that brings in a spotlight to shine on the walls to look for drywall imperfections. Choose to look up! See your beautiful new home! After the journey you have just completed, you deserve to enjoy your new home. 

5 ways to save money when buying a new construction home 

Sometimes new home buyers do not understand they can have their own buyer's agent representation. Not a buyer's agent who is contracted or an inhouse paid employee representing the builder, rather their own outside agent. Another misconception is that buyers sometimes think they can save money by using an inhouse agent. That the builder will reduce the price of the home by part or the entire amount of the commission. This is not true. 

 

Builder-commissioned agents work directly for the builder and represent the builder, so who is representing your best  interest? With a new construction home purchase, it is simply best to have your own independent representation with a skilled new

construction agent. It is important to make sure that you do not just stop by a new home community without having your own trusted real estate advisor. If you do - do not sign anything - because once you sign in, you may not be able to get your own real estate advisor to represent you and your best interest later. The best course of action is to have your own trusted real estate advisor accompany you into the new construction community. This lets the builder know that you have your own representation, and you can rest assured that your best interest is considered from day one to closing.  

Understand how the builder works

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This revolves around contracts and the building process. New construction contracts, and process from day one to closing is quite different than a resale home and it can be quite different than what many real estate agents are used to dealing with. As highlighted above, you want to make sure you have a trusted real estate advisor representing your best interest, who is familiar with new home construction contracts and process.

Know the builders lender

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Builders love it when a buyer uses their preferred lender. In most cases, they will offer enticing incentives to ensure a buyer chooses their preferred lender. There is a huge financial risk for builders when they build a new home. Using their preferred lender reassures the builder the buyer is a good credit risk. Depending on the incentives the builder is offering, it may or may not be in your best interest to use the builder's preferred lender. An experienced real estate advisor typically has a tried and true lender that can review the builder's preferred lenders financial terms and let you know if it is the best mortgage. Additionally, if your credit is less strong, a trusted outside mortgage broker typically has more financing options to assist you getting the best deal.

Builder list prices

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Builders do not like to change their list price. They do not like to hagel like vehicle sales organizations. It is very rare to find a builder that will reduce their own price. Unless the market is going down. If you do see builder home prices going down, it is an indication the market is changing. Builders are more likely to pay for your closing costs or design incentives; although, these are typically ways for you to pay more back to the builder in one way or another. Maybe they offer $10K in the design studio. You go in thinking you will spend a total of $20K, you get carried away and end up with a $50K bill. This is something that happens all the time, something to think about. It is very important to have some discipline within yourself to stay within a budget that makes sense to you, and to also make sure you are not upgrading that home beyond the community for possible resale down the road. 

Builders are not like regular sellers

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They do not have an emotional attachment to their homes. They are selling a product, and that is how they look at it, even though they take pride in their work. You and I see it as a house, we view it as your new home. Builders view it as a product and they want to get the highest price possible, so they are not likely to make any reduction on their price. Price reduction sets a poor president for the community, as well as their future pricing structures. Regarding pricing, it is common for prices to increase with each new phase of construction being built. 

Get everything in writing

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In real estate, working with contracts and points of interest it is vital to have all details in writing. It may seem obvious, but when you are in the hustle and bustle and excitement phase of getting into your new home, it is

easy for details to get overlooked and later argued. If something is really important to you, your trusted real

estate advisor will ensure it is in writing.