There are several advantages of purchasing a new home constructed by a homebuilder.
- Builders provide a warranty for workmanship, mechanicals, foundation and the structure that a resale home may longer have.
- New houses are typically more cost effective, due to better energy efficiency, modern appliances, and improved insulation standards.
- New houses in similar locations and similar schools, typically have higher resale potential than an older resale house.
- Depending on the builder and cost of the house and stage of construction it’s in, you get to make interior selections on colors, flooring counters and appliances.
The Covid-19 pandemic has put a strain on available resale houses for sale. With fewer homes available, competition to buy them has increased significantly. This often results in multiple offers to purchase the same house, which may increase the sale price.
One way to avoid multiple offer situations, is to purchase directly from a new home builder. This allows you to select a builder’s model home on a lot that you like, agree on a price, and sign a contract to purchase it. Because the prices are set by the builder, and they are selling one house to each customer, multiple offer situations are avoided.
One downside of purchasing a new home is the time it may take for it to be finished. This could take several months depending on the stage of construction and the complexity of the house being built. However, if you are currently leasing, this added time may allow you to get to the end of your lease term without having to pay penalties to end your lease early.
Why You Need a Realtor®
Home builders employ onsite salespeople to work in their model homes to represent builder interest. They sell homes, provide information about the builder’s models, pricing, community amenities, and available home sites in the community. They also prepare your contract to purchase a home and forward them to the builder for their acceptance.
Builder contracts are longer and more complicated than those published by state real estate regulatory agencies. They are also written with the builder’s interests as first priority and include detailed timelines for design decisions, upgrade deposits, mortgage approval requirements, construction progress meetings, etc. Not meeting these benchmarks can result in additional fees, construction delays, and possibly missed opportunities to make decisions on your house.
Home builders have different specialties. Some build entry level houses, others construct mid-level move up houses, and others build semi-custom and luxury houses. This can make the decision of which builder to purchase from challenging.
Realtors® also have different specialties. Having one that is comfortable working with new home builders representing you, is to your advantage. As your agent, they are legally and ethically bound to put your interest first; and their fees are paid by the builder so their services will not cost you anything.
The benefits of purchasing a newly construction house and having a trusted professional represent you go far beyond what is stated here. Go to buyingatexashome.com for more information.
Having a Realtor® guide you through the new construction and purchase process is wise. They will help you make good design decisions, improve negotiations with the builder and recommend industry professionals, such as third party inspectors to oversee the construction of the house.
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