Getting Started - Steps In The New Construction Process
When it comes to quality of lifestyle, buying a newly constructed home is an obvious choice. A brand new construction - untouched, unique, and contemporary - has definite advantages for many home buyers.
If this is the route you have decided to go in your home purchasing journey, following these steps will help you map your course to a successful purchase.
The Right Realtor
Do you need a realtor in the new construction process? That is a definite yes!
Home buying and constructing, however exciting, is also a stressful process with many facets of essential communication and checkpoints. The right Real Estate Agent is your representative, one with in-depth experience and knowledge about the industry, its players, and factors.
Your agent will navigate the process with your best interests at heart. For one, considering how busy builders get with many Clients, you are not their highest priority at all times. You will need a skilled and experienced partner at your side, ready to represent you at every turn.
A realtor will help you understand the process, the best times to negotiate and proceed, the best contractors to use, and more.
When communication is vital, you can rest assured that you only have one professional to deal with, who, in turn, will negotiate your needs and preferences because they have the experience to do so successfully.
Now, does that not sound less complicated?
Types of New Construction Builders
Production / Corporate Builders
These are companies like Ryan Homes (whom I represent), DR Horton, Perry Homes, etc.
They have models of homes with agents that service and sell them. They generally have a set amount of home types and different upgrade features from which to choose.
There are two types of builders in this category:
First, those we call ‘spec homes,’ constructed or partly constructed.
Those that build homes per contract, which is where you get to choose the design and finishes.
Spec Builders
Spec builders build homes without having buyers commission them first. By speculating, they can sell the house for profit when done.
Typically you buy these homes the way you see them, and you can’t change the layout or design. A local agent represents these homes to market and sell. Unlike a production builder, they don’t always have model homes.
Custom Builders
Have it your way, as this type of builder will build what you want! They won’t start building until they have a buyer, so it starts with you commissioning the build directly. You are actively involved during the entire process in choosing the layout, interior, and landscaping.
Steps In The Process
Step 1 - Get Pre Qualified
A realtor will typically have a few mortgage officers they work with to refer you to, which is one reason why it’s great to have a realtor representing you. It makes this step effortless.
If you choose to go through without a realtor, you can go to your local bank to get pre-qualified as well. It’s essential to do this first, as it will guide the type of houses you will be choosing. It will also assure the builder that you can buy a home.
Step 2 - Find a Home and Ask Questions
Once you are pre-qualified, start searching for homes that fit your needs. When meeting with your realtor or Builder, be sure to ask how long it will take to build, or finish building, the home to make sure the timeline will work for you.
Ask how much earnest money is required as it can be different with each builder. If you choose a builder that will allow you to select house types and finishes, find out how long you have to make your decisions ahead of time and when to communicate changes. Most builders have deadlines for these.
Step 3 - Go Under Contract to Purchase
Going under contract will be different, depending on the type of builder you choose.
If you choose a production builder, the agent or sales representative will typically write the contract as the homes’ price is near non-negotiable. Your realtor may be able to get some type of cash incentive to go towards closing costs, upgrades, or off the price of the home.
If you are working with a spec builder, in most cases, you or your real estate agent will submit an offer/contract to purchase the home as the prices are more negotiable with this type of builder. In this case, we are trained experts in negotiating and winning better prices for their Clients.
With such a defined path mapped out, buying a brand new construction for your Family is not only possible but a rewarding choice. So, if you would like to know a bit more, get in touch, and let’s chat!