In the case of smaller independent contractors with one or two jobs going on at once, it's likely going to be more difficult to get them to embrace additional cost because they can't operate in the same manner as the larger companies.
It's been mentioned previously but is important enough to be brought up again. many buyers of new construction under estimate the importance of having an experienced agent in their corner...not just the representative that is being paid by the builder.
Picking a custom home builder is a lot like picking a realtorÂ®; you should interview several builders before making a decision. Do not solely rely on a referral from an agent! Do the work yourself and interview several. Hereâ€™s a short check list of questions to ask:
1) Ask for current client referrals, 3 should be no problem & follow up with each regarding quality of the home and how well the builder did in regard to warranty work after the sale.
2) Ask if the builder is willing to do a cost plus contract this will save you money if the builder is ethical and doesnâ€™t try to steal.
3) If you are obtaining financing ask about construction perm loans, these are one time closing loans and usually save the customer about 2,000 and may also have a tax benefit for you. It also allows you to see all the bills and control all the money.
4) Talk with the builders bank make sure the builder has the resources to complete the project
5) Do a basic background check on the builder look for items such as liens, bankruptcies, lawsuits different company names they are an officer in that are now insolvent and in the same industry.
6) Check with the local home builders association for a list of builders in the area
7) Energy cost are going up and the trend will continue pick an Energy Star home builder and have the home certified as an energy star home this will save you money over the long term, add quality to your home and help the resale down the road. For an energy star home expect to add 2-3% to the price of the home.
8) Ask to see a written copy of the home builders warranty program.
9) CONTRACTS- usually not a big deal and all 3 types work well the question is getting the best deal for you. The 3 types are: RealtorÂ® provided (these protect the interest of the agents & brokers), builder provided (these protect the interest of the builder and usually provide more detail in regard to dispute resolution) home owner provided (these are drawn up by your attorney and favor you in the event a dispute arises) many times a builder will want to use their contracts, itâ€™s usually fine just make sure your real estate attorney reviews the document before you sign.
10) Have fun!
Thatâ€™s your top ten list! Good Luck!
One thing to keep in mind this spring is that the price of land/lots is going up and the price of new homes will rise more slowly. Therefore, the profit margins of builders will be squeezed until the prices of new homes rise in accordance with land. Your best time to bargain on upgrades or price is right now!
The Realty Association
You have asked a very important question. Yes, it is very important to have someone represent you who has knowledge and experience with new construction. Even if the builder wants to keep the purchase price really close to the asking price, you can often get other concessions such as closing costs, appliances, and, yes, a fence. I would be very happy to discuss these options with you.
I am available now, just call my cell.
Have a great day.
Red Realty, LLC
It will also depend on the builder, I have sold homes as a buyers agent with two different builders in the past 2 months, one builder wouldn't budge on anything and one builder was willing to negotiate on a lot of items.
Let me know if I can help with other questions!
Benchmark Realty LLC
Best of Luck and hire a Realtor to help,
Josh Barnett, Realtor
Metro First Realty