Home Buying in Avon Lake>Question Details

Lindsey, Home Buyer in Cleveland, OH

Builder is advertising "No Mortgage Payments for 2 years!" Too good to be true?

Asked by Lindsey, Cleveland, OH Mon Apr 20, 2009

Kopf Builders is offering no mortgage payments for 2 years on the Aqua Marine condos in Avon Lake, Ohio. On arrangements like this, does the buyer still accrue interest while not making payments? How does this impact what the future monthly payment will be? Does the buyer still have to front a 5-20% down payment?

I'm sure the sales office has all the info, but I wanted to see if it's worth checking out before I see the models and get my hopes up.

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Lindsay:

This response is regarding new construction and builders in general, not Kopf Builders specifically.

I always recommend that a Buyer retain a Buyer's Agent to assist them in a home purchase, even when it is new construction. The Buyer's Agent represents the Buyer's interests in the purchase transaction at no cost to the Buyer, because the Seller pays the Buyer's Agent's commission. Builders are Sellers and they always pay a Buyer's Agent's commission - - it's factored in the base purchase price, before a Buyer adds on the cost of upgrades. The most important thing is for the Buyer to bring her/his Buyer's Agent to the first meeting with the builder, when the Buyer registers with the builder as an interested Buyer. Otherwise, the commission will go to the Builders's (Seller's) Agent or the Builders Sales Person, who is not representing the Buyer's interests. Builders are used to working with Buyer's Agents.

I am an a Realtor who covers Avon Lake. I am with Keller Williams Greater Cleveland West, in Westlake, across from the Promenade of Crocker Park. I am also an attorney, with almost 30 yrs of experience in real estate.

I would be pleased to assist you. However, if you already have a Realtor, make sure the Realtor represents you as a Buyer's Agent when working with a builder. Many new constuction home builders are offering very special financing due to the recession (much as they did in the 1980's, when we had our last housing crisis). It is important that you understand the financing being offered, so you know any pros & cons. Some of the financing can be complicated in structure, but when compared with other bank financing, it may be your best choice. You just need a real estate professional to represent you.

Good Luck!

Pat Pribisko
TEAM PRIBISKO
Cell: 440-725-0910
E-mail: patpribisko@kw.com
Web: http://www.AgentsWhoEarnYourTrust.com
0 votes Thank Flag Link Mon Apr 20, 2009
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