Home Buying in Allen>Question Details

New Home Buy…, Home Buyer in Dallas, TX

I am considering building a new home, by Darling Homes, in the Montgomery Farms neighborhood in Allen, Tx.

Asked by New Home Buyer, Dallas, TX Wed Feb 20, 2008

Since it is new construction, is there any information available that might help me in negotiations?

Help the community by answering this question:


If you have already started your new construction...congratulations. If not, here is what I would suggest.

Call...don't visit...the builder and ask them what incentives they have available. They will typically give you a number which may or may not require their lender and title co. Use the number...throw the lender and title co. info out the window. Now, a typical builder gross profit margin is 15%. So the List Price on the sales sheet includes the 15%. If you can negotiate a Sales Price which leaves the builder a profit margin of half that or less, that will be a respectible deal. So, take 15% of the sheet price, reduce that by the incentive and the difference between that and say 5% profit margin will be the additional discount you want.

Also, make sure all of your change requests are documented up front. The builder will make mistakes and it will be up to you to identify them quickly. So you will need to be onsite on a regular basis. Also, any changes that have to be made during construction can be costly.

There are a lot of other little things that are relatively important...but these are the major ones.

Hope this helps.

Alan Wynn
Like NO ONE Else!
1 vote Thank Flag Link Fri Apr 25, 2008
Thank you all for responding, but if I was looking for a realtor I would have used the yellow pages. Please respond with actual suggestions and not just attempts to gain business. Thank you.
1 vote Thank Flag Link Thu Feb 21, 2008
I had my home built in 2008. Most of it is nice. I've had several problems with it through the. Years tho. They do not use the best contractors as they want you to believe. My father was a home builder as other members of my family so I know how things should be built. I also run a company so I know how people can complain over everything. I'm not like that. My house is 6 years old and has massive rott and mold on the entry way and dining room floor. The roof is extremely rotted and rotted the walls and hand scraped wood floor. I called my insurance agent and he came out with a roofer,it was determened that it was faulty workmanship and incorrectly built. The roof actually had a flat spot that has been holding water since day one. I then called 2 other roofers to check to make sure they were not just trying to get out of paying for it. Both other roofing companies said the exact same thing. Everyone said call the builder. So I called darling homes to have them come look at it. I even called my father who is a custom home builder for over 40 years. He said this is wrong call the builder. Well darling came out looked at the floor then left. He returned 3 days later with a roofer. Well it took a week to get back with me and he said. Darling homes builds it that way and sees no issue. Also your past warranty. This is a direct quote. Now remember my house is only 6 years old and was 400k. So I said, "so it was done wrong or you build your roofs to only last a year or so? "because this is years of Rot. There has been no hail and no damage to the roof. It's rotted to the point you can put 2 bowling balls in the holes,but this is how they build them darling says. We are not going to help you at all. This will not let me post pictures so I will put the videos and photos on you tube. Just to let everyone know, darling homes did nothing and gave no reason why my roof and floor was rotted. Except that's how we build and we see no issue with it. I'm not kidding that's exactly what they said. You get a 1 year warranty no matter what happens after that, even structal defect they will not do a thing about it. Just to let you know on the other issues my bathroom tile in the shower is very uneven, my garage door has broke 5 times and I always fixed it myself. Untill the spring busted,I then called out a garage door company. They said you had a insulated door installed. That I did, but they didn't upgrade the hardwear around it. That's why it kept busting on me. Trust me there is better homes out there. I will buy drees or highland next time.
0 votes Thank Flag Link Thu Oct 22, 2015
Hello New Home Buyer,

I am not able to tell you of any special deals, incentives, etc., however there are things you do need to know regarding buying a new home in Texas. To begin with all new homes are subject to the rules of the Texas Residential Construction Commission. You should navigate through this site and become familiar with the responsibilities of the builder and the buyer. There are many things that can cause you grief later if you are not aware of them today. The TRCC site is http://www.trcc.state.tx.us/default.asp.

Working with a RE Agent certainly can not hurt as they can provide some information that you may not be privy to such as discounts, comparable sales, etc., etc. I found Alan Wynn's advice below very informative and it does demonstrate what RE Agents know that the general public might not. (thumbs up to Alan for good advice). Before you visit a builder's site and speak with a builder I would highly recommend that you have a Real Estate Attorney picked out and available. Builder's contracts are very well written to protect themselves and leave the buyer little working room when issues arise. Before you sign any contract, or anything from a builder, have the RE Attorney review it and explain it to you. I'm sure Mr. Wynn will agree that a RE Agent can not provide any legal advice unless they are also an attorney. Also the attorney can help put the proper contingencies and demands in your contract to prevent a builder from denying you any due dilligence work such as phased inspections.

Of course I will recommend that you have phased inspections performed to protect your huge investment. However, many buyers do not realize what it costs to perform proper phased inspections and most do not plan that cost when searching for a new home. When they hear the price they gasped and choose not to have them thinking they will be covered by the builder's mandatory 10 year new home warranty. Do not count on that avenue as any hidden defects can stay there for years. Later when they begin to manifest themselves, unless they cause a habitability issue you are most likely going to be on the hook for their repair.

If you choose not to have phased inspections then be ready to visit the site very frequently, with a digital camera (even a digital movie camera). Take pictures of everything from the ground breaking, before they pour the cement for the foundation, framing, etc., etc. Take as many pictures as you can from as many angles. If a construction defect does occur at least you will have pictures showing what might have occurred or be the cause. If you do no other inspections at least have a final inspection performed prior to accepting the home. I can tell you horror stories of the things I've found on final inspections.

Good luck and if you ever have a question feel free to contact me.

Emmanuel J. Scanlan
PS Inspection & Property Services LLC
214-418-4366 (cell)
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Certified Infrared Thermographer (ASNT-TC1A Standards)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor

Knowledge is power, but sharing knowledge brings peace!!
Web Reference: http://www.psinspection.com
0 votes Thank Flag Link Sun May 24, 2009
Do not use a realtor! We are in the process of building our 5th home (two have been new construction), which will be complete in July. I have never used a realtor for buying a home, and never will. In the case of new construction, the builder may tell you out loud that you won't get the realtor fees in the form of a discount (they say it's allocated in a "marketing fund"). However, any builder will whisper to you that they will give concessions for not using a realtor. If you have a basic understanding of contracts and negotionation, you will get far more than if using a realtor.

Realtors jump at new construction because it's easy money and you have to do most of the work anyway (selecting upgrades, options and being there to sign the contract). Do some basic research on the Internet to find area price/sq. ft for other comprable homes. You can get any information that a realtor has access to online. Always, always get something else before signing the contract, such as a refrigerator, window treatments or upgrades. The builder will not flinch.

First, the builder will often only talk to the realtor regarding the price and they will leave you out of the negotiation process. Secondly, often the builders give incentives to realtors (trips/bonuses) and they will direct you to them even out of your best interest. Furthermore, the realtors that I've dealt with to sell homes (through my company), are not trained negotiators. In fact, I've had to step in a handle the transcations myself while the realtor watched. I realize that there are competent realtors who are extremely professional. However, it is certainly an industry where the 80/20 rule applies. 20% of the competent realtors cover for the 80% who are not.
0 votes Thank Flag Link Sun May 24, 2009
Hello New Home Buyer. Montgomery Farms in Allen is a wonderful subdivision to consider. There are many reasons why it should be high on your list, if you haven't already signed a contract with them. The city of Allen is a great place to own a home because land is running out. With limited supply, demand will rise over the next decade and help home prices elevate. The city of Allen is not so big like Frisco or Plano where it can feel overwhelming, but not so small where you have to drive miles to get to a store. The population is in the mid 70,000's and the streets are rarely congested. The school district is top rated and many people move to Allen specifically for the schools. Montgomery Farms is right down the street and within walking distance to a first class lifestyle center called Watters Creek http://(www.watterscreek.com). In addition, The Meadows at Montgomery Farms has homes that are in the $800K+ and will help with the resale value of your home in The Arbor at Montgomery Farms, which is where Darling Homes builds. Darling Homes offers their classic Cape Cod style homes at Montgomery Farms. These homes are unique in the craftsman style features and detailing inside the house vs. getting the large square footage without the fine details. I am an Allen resident myself and love this city! If I can help in any way, please let me know as I am a licensed real estate broker. Visit my cutting edge website http://(www.janusREgroup.com) for more information on Allen. Thank you.
Web Reference: http://www.janusREgroup.com
0 votes Thank Flag Link Wed Jun 11, 2008
Just bought Darling in Mckinney. I'm not an agent. Can give you tips.

only4raw at yahoo com
0 votes Thank Flag Link Wed May 28, 2008
Hire a Realtor! It costs you nothing and we are trained to assist you through the negotiation process. Please do not sign a builder contract unless you have a real estate professional look it over to see if there are any bulder incentives that you can be offered. Also, make certain that if you have any contingencies, such as needing to sell a home before closing on your new home is stated in the contract. This one step saved one of my clients from paying 2 mortgages simultaneously.
Also, make certain that there are inspections conducted when the electrical, HVAC system etc.. are installed. Visit the building site frequently. I have seen carpet being laid over construction worker's trash and yelled.. stop right there!
Let me know if this has helped you or if you would like me to represent you with this transaction.
Best of luck to you!
0 votes Thank Flag Link Thu May 22, 2008
Many good books on negotiation recommend getting a buffer between you and the other side via representation, which is why countries have ambassadors, celebrities, authors and athletes have agents, etc. Obviously, Trulia is a place agents try to find business, maybe yours, but please seriously consider the advice to get expert representation and not just react to the solicitation. If you insist on representing yourself, you will likely miss out on rebates and bonuses not disclosed or offered to unrepresented buyers before you even start. Alternatively, become an expert yourself in resale values, what Darling has actually sold the homes for compared to asking price, Allen land and development trends, comparison to other builders and surrounding communities and the construction process. This is a start, but only a fraction of it. As for strategy, be prepared to walk away if the terms are not right and hopefully you will get the deal you want. If you do not want to work with a Realtor, consider finding an Allen homeowner or friend who has built more than one home and get them to come with you and help evaluate.
I am curious, since buyer's agency is free and can literally save you thousands or even tens of thousands, why would you not use professional representation? Realtors would not facilitate 98% of transactions if we offered no value. Consider other ways of finding agents than yellow pages. The best source is a referral from a trusted friend or an experienced agent you personally feel comfortable with. Call if we can answer questions with no obligation. The Hollers Team 214-384-1169.
Web Reference: http://www.HollersTeam.com
0 votes Thank Flag Link Tue May 6, 2008
WAIT ... you need a realtor involved .

We address so many emails and phone calls a week where a buyer and builder did not see eye too eye or the buyer assume something that the builder should do. Allow a real estate agent to assist you and represent you. therefore if anything should happen you fall under the Dallas real estate agent errors and ommission insurance policy.

Excited you are purchasing a home !

Contact our office or visit our website, we look forward to working with you !
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Mar 15, 2008
Great neighborhood. Lots of new retail. Darling is a great family owned builder. Personally I prefer Highland Homes.Please call me if you do not have a realtor and would like some special buying incentives.972-342-7217 http://www.pamgossick.com
0 votes Thank Flag Link Tue Mar 11, 2008
If you are set on building, then build. If you want a better deal, submit an offer on a house already built. Builders are wheeling and dealing right now.
Web Reference: http://www.homeferret.com
0 votes Thank Flag Link Mon Mar 3, 2008
Definitely use a Realtor. I myself give up to 5% cash back on new home builds in Texas. What builder are you looking at? What time frame do you have in mind? This could also depend on if you are building or buying a home the was just built. I have worked with a few over the last few years.
0 votes Thank Flag Link Sat Feb 23, 2008
Use a Realtor..... I think there are some better than others, but almost any experienced realtor will save you time and money versus going to the builder directly. Just asking the question tells me you're not ready to negotiate directly with them. It's not an intelligence issue, it's an experience issue. I'm sure you're an expert at whatever you do, but likely not an expert negotiating contracts with builders. Even as a Realtor myself I would always hire someone to negotiate for me when I sale my own house. If you want to see some of the things that go wrong when you buy a house from a builder check out my website under New Homes..... There are certainly cases where things go right, the builders give you a great house at a great price, but why would you risk what is likely your biggest investment, when you can get an expert negotiate for FREE and potentially even save more money than going at it alone.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Feb 22, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
My team would be delighted to assist you with your real estate needs..let's visit and discuss your goals and time line.

Once we have an idea of your plans we would guide and assist you from start to finish...

Mattye Smith

Ambiance Realty
0 votes Thank Flag Link Wed Feb 20, 2008
Definitely use a Realtor to provide you advice and experience. This is a high $ community and you do not want to regret the purchase of your home. So it may seem that you can buy without assistance (and many do); sometimes even the smallest items that are overlooked initially cannot be changed once you begin the process. And the process can be long and sressful with walkthroughs and inspections. Ask about upgrade allowances or discounts. This is a Highland Homes and Darling community—both excellent—and excellent community. If you are looking at the Darling product, there is an existing one year old home for sale near the elementary school.
0 votes Thank Flag Link Wed Feb 20, 2008
What I would recommend is having a Realtor represent you in this transaction. There is no cost to you as a buyer (the builder pays real estate commissions). Having a professional on your side is important, and they will be looking out for your best interests. Realtors go through the home buying on a regular basis and their experience will be very helpful to you.

If you still feel that you must do it alone, you can still negotiate a price with a builder. Having comparable home sales data is a good place to start. Most realtors can give you this information as well.

Keep in mind, all real estate transactions are negotiable! Good luck!

Melissa Hailey
Coldwell Banker Jane Henry Realtors
0 votes Thank Flag Link Wed Feb 20, 2008
My best advice is use a REALTOR to assist you in your purchase. Alone, you represent one customer to a builder. With an agent, you represent potentially hundreds of purchases. A REALTOR can often get the builder to include upgrades or incentives that they might not provide one customer. But beyond just assisting you in negotiating your purchase, I will be with you through the entire building process. I follow the construction progress for my clients and will also recommend an inspector to monitor the construction at various phases of the build. This gives you two experienced partners in monitoring your new home during construction. And we work for you, not the builder. Yes, even the best builders like Darling are only as good as their worst sub contractor. Don't you want someone working for you to be monitoring the process? Best of all, Darling pays your agent through their advertising fund. You don't pay more because you work with a REALTOR. Darling is a great builder who is willing to customize their homes to fit your needs. And I believe Montgomery Farms will be a great investment for you.

Start off on the right path. Work with a REALTOR.
0 votes Thank Flag Link Wed Feb 20, 2008
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