Firstly, I want to be clear that I am not "against" purchasing a new home construction property nor am I in any way trying to deter buyers from purchasing a new home construction property. Oftentimes, new home construction homes have allot to offer!
In fact, I have represented many clients through the new home construction process with great success and I have personal friends who are new home construction salespeople.
My goal in this narrative is to disclose some of the details that most buyers are not aware of and to provide a bit more insight into the new home sales process.
It's vital to note the new home sales consultant is NOT working for you, he/she is WORKING FOR AND REPRESENTING THE BUILDER. These sales consultants have been trained and taught to provide a service to you that places the interests of the builders first, not yours.
Did you know that new home sales consultants are not allowed to have an active real estate license? One reason being, in my opinion, is because real estate agents (specifically REALTORS®) have a fiduciary duty to put the interests of the client first, not so with new home sales consultants.
Another detail to be aware of is that the builder offers some very enticing incentives when you use THEIR lender and/or THEIR title company . . . red flags start waving when so many integral parts of a big process, like purchasing a property, are in such cahoots with one another.
My advice IF you do decide to use the builder's lender and/or title company, please be sure to SHOP lenders, at the very least, to make sure the builder's lender is in line with standards and you are getting the best interest rate and loan type possible.
Bottom line, it does not cost extra money to have a realtor representing you (their compensation amount is already built into the price of the property) and if you choose to hire a realtor to represent you, you know you will have an advocate working FOR YOU, not for the builder.
Your realtor will:
1) Go over the contract with you (the builders' contracts are NOT standard and are written with the builders' interest in mind)
2) Provide you with comparable property data to make sure the price of the subject property is in line with the current market values
3) Help you shop lenders and negotiate the best interest rate and loan program to fit your specific financial needs
4) Negotiate a better price on the home and/or appliance packages etc for you
5) You'll have constant advisement and guidance throughout the entire process by someone who places your best interests first.
Please let me know if you are interested in a new home construction home or would like more information on a specific new home construction community - there are SO many great builders and communities right here in Central Texas!
I have experience representing clients in new home construction purchases and I would be honored to earn your business.
Love, Victoria 512 695 8923
Please Read a Few Reviews from My Clients Who Allowed Me to Represent Them While Purchasing a New Home Construction Home
"My wife and I had a great experience working with Victoria when we purchased a new home in the Austin Area. Victoria helped us find prospective homes to purchase that targeted our specific needs, exceeded our expectations greatly in negotiating a deal, and demonstrated her great knowledge of the local market. We even got several additional desired options we would otherwise have had to purchase and a lower purchase price, exceeding our expectations of what was possible under present market conditions. Victoria was very easy to work with, communicated well, and even recommended a great title company representative who made the closing easier. Victoria was also available when we needed advice or assurance along the way, and her assistance continues after we closed on our new home. Thanks to Victoria for all that she has done so expertly." ~B.F.
"Thank you Victoria, for the professional work you did with my parent's home in Whispering Hollow. I didn't think we could buy a house for them in such a short time, but with your help, we did. You were always on time, always helpful and always organized. Thanks so much." ~E.P.
"Victoria was an absolute pleasure to work with! This was mine and my husbands first time buying and we knew very little about the process. Victoria helped us with all of our questions and concerns. She went above and beyond our expectations of what a realtor truly is. Give my 5 to 10 years and trust me, I'll be working with her again! Talking with her from day to day it never felt as though it was a business relationship I felt as though I was talking with as friend I had know for years. If you're looking for a realtor who will truly have you and your families best interest at heart then Victoria is your realtor." ~ K.K.
"Victoria is the best realtor I've ever used. She is very professional and pays attention to every detail. She really fights for her clients both before and after the sale." ~C.R.
"Victoria is the best Real estate agent we have ever had , always on the ball and stays on top of everything you need!" ~A.R.
"Victoria is amazing! She jumped straight into action for us, 3 years ago, just as we were starting our family, and my husband was relocating across country. She took in all our needs, and had out best interests at heart when she helped find us our perfect little starter home to start our life in. She's kept in touch with us throughout our time spent in this house, (she's even attended our daughters first birthday!) So of course she was our number one go-to when it came to buying our first home to continue to grow our family in. She has been there every step of the way, no matter how big or small. She's taken immaculate care of us, and I know we couldn't have done it without her. Not only are you getting a quality, heartfelt service when you work with her, but there is no doubt that you will also gain a friend. She is fantastic! Thank you, for everything, Victoria! "~D. & A.T.
I found an article on Realtor.com I wanted to share with you below:
Buyers Beware: Builder Incentives and Seller Concessions - Realtor.com
By: Michele Lerner
It is easy to be drawn in when a builder or seller offers assistance—or a fun incentive—to purchase their property. When you’re deciding on your down payment and estimating your monthly payments, any help is welcome.
However, while financial assistance, a free vacation, a sunroom addition, or a new car are enticing reasons to consider one property over another, buyers must keep a long-term focus in mind and a skeptical eye on these kinds of builder incentives and seller concessions.
Buying a home is more than a financial investment; there's also an emotional component. Builder incentives and seller concessions are sales tactics to encourage you to make an offer on a home.
If you truly want a property for other reasons aside from the incentives and concessions, it may make sense to make a serious offer.
However, if you’re more interested in just taking advantage of a seemingly cool deal, then you need to keep looking for a home you truly love and dig deeper into the details of the deal.
Why are incentives offered?
Builders of new homes offer incentives to buyers at various times during the development cycle.
In the initial stages of selling a new community, builders often offer incentives to pre-sell homes. When a community is almost sold out, builders may provide incentives in order to sell their final few homes.
Sellers of existing homes may offer concessions to buyers, particularly if they’re trying to sell an unusual home or if market conditions favor buyers.
If you’re looking for a home in a seller’s market and are offered a concession or incentive by a seller, take it as a red flag and ask why the seller is so eager to offer a deal.
Common builder incentives and seller concessions
Builders often offer to pay closing costs or for optional features such as a finished basement, a sunroom addition, or stainless steel appliances.
To get the incentives offered, buyers usually must work with the lender recommended by the builder as well as the title company chosen by the builder. If you choose to work with the builder's preferred service providers, you still should shop around for a loan and compare title company fees to be sure your deals are fair.
Some sellers may stoke interest with offers of a free vacation or car. Keep in mind you may have to pay taxes on these items—and you’ll be responsible for insuring a car, too.
Sellers also can offer to pay closing costs, buy down your interest rate, or pay homeowner or condominium association dues for a few months. Remember to evaluate whether the price of the home has been increased to offset these concessions.
Remember, a good REALTOR® can help you analyze the true market value of a property and any concessions.
Your lender still needs to know
Loan programs have rules about how much a seller can contribute towards a buyer’s purchase. If you’re considering a deal in which the seller or builder will pay some of your closing costs, you must discuss this with a trusted lender.
When you work with experienced and responsible professionals, you can feel confident any incentive you accept is just a bonus on top of your decision to buy a home you can comfortably afford and love.