Do you need a real estate agent if you’ll be building your new home? The answer is “yes!” And, here’s why:
- Buying new construction, like any home purchase, is a complex and large transaction with many financial implications. A REALTOR will be there to represent your interests throughout the process.
- A REALTOR is contractually obligated to protect you and will be looking out for your best financial interests.
- Whether it’s terms, financing options, or upgrades, a REALTOR will work on your behalf to negotiate what is best for you.
- A REALTOR will manage the closing process—financing work with title companies, inspections, and more.
Tips for Buying New Construction
Buying a new construction can appear the same as purchasing a resale home, but there are some primary differences. These tips will help get you off on the right foot:
- Use your own broker/REALTOR® – Get your broker/real estate agent involved early in the process. If you’re seeking an agent, the REcolorado Find A Realtor Agent/Office tool is a great place to start.
- Price – Negotiating price may not be an option. Builders typically have an established set of prices based on the market. If they lower the price of one home in a new community, it drops the comparable value of the other houses in the community. You may have more luck if you ask for builder concessions in the form of additional upgrades.
- Builder Addendum – Expect to get a lengthy builder addendum or a Builder’s contract in addition to the standard purchase forms used by a REALTOR/broker. Read all contracts carefully and consult with a real estate attorney if you have questions.
- Floor Plans – The floor plan you see and the floor plan you get could be different. For example, room sizes are typically close estimates, with measurements rounded. Additionally, floor plans can rarely be modified. Unlike building a custom home, most community sites are based on a pre-approved set of plans.
- Timing and Changes – Work with your builder closely to understand how long the construction process will take. Add an extra month to the anticipated completion date. Also, be sure to anticipate changes. A supplier may run out of a particular pro cut, a price may change, and the weather may have impacts.
Ask Key Questions to Find the Builder for You
Once you’ve decided to build your Colorado new home construction, and you’ve lined up a good REALTOR®, your next step is to select the right builder for you. With so many options out there, asking some key questions will not only help you choose the right partner to build your new home, but will also help you better understand the process.
- How many years has the builder been in business and how many homes have they built?
- Is the builder licensed and insured?
- What type of warranty do they offer?
- What, in the builder’s opinion, differentiates them from the others?
- Can the builder offer references?
- Are there model homes the builder can show you?
- Can you provide my own set of plans or do you build only from your own plans?
- Who will oversee the construction on your home?
- Who do you contact with questions?
- Can you make changes during construction?
- How often will you be able to see your home during construction?
- How will the final price of my home be determined?
- What is your process for inspection during construction at final walk-through?