Why should a buyer use a Real Estate Agent when purchasing a brand-new home from a builder? While the builder’s representative can be a resource, they are primarily focused on the builder’s interests, not the buyers. Let’s dive in and explore the many ways Michele Harmon Team can help you with the purchase of a new construction home.
We Advocate for Your Best Interests
Michele Harmon Team can assist you in evaluating factors such as your financial plan and the expenses of customizations. Moreover, in case the builder requests a postponement in construction, we will advocate for you and make every effort to keep the builder on track. We will prioritize your interests above everything else.
“It’s exciting to go into a new construction community, and a lot of times, the builder rep will be pushing you to sign a contract. If you don’t have someone there to represent your best interests, you can end up signing something without a full understanding of what it is you are signing,” David Mickley, Michele Harmon Team Sales Partner said.
Although we will advise you to seek legal advice to interpret the contract, we can help point out the highlights of the contract and make sure you understand what you are agreeing to.
“I met a buyer at a new construction site this morning and we went through the contract. I wanted to make sure he understood that once he gave them that $5,000 check, he probably wasn’t getting it back. They weren’t letting him out of it just because he changed his mind,” Michele Harmon said. “Each new construction contract is different. It’s not like a traditional one, where they have an option period to back out. They really have no way out, unless it is for financing reasons, and it is really important for them to understand that.”
Lender Recommendations and Financial Considerations
Builders often suggest their preferred mortgage lenders to cut their costs and sustain their business.They may even offer alluring deals and discounts if you use their lender. However, do not rush into a decision and choose their lender without researching your options. The savings their lender provides may not be the best option for you. It is prudent to seek the assistance of Michele Harmon Team to help you find the most suitable lender for your needs. According to Freddie Mac, shopping around for a better mortgage rate can potentially save you hundreds or even thousands of dollars over the lifetime of your loan.
We will provide you with clarity regarding the costs that you will incur, and we will assist you in determining which financial advertisements by builder representatives are relevant to your situation. This will help you make informed decisions and avoid any unexpected expenses.
“Our team is going to make sure our clients are not going to pay for anything they are not supposed to pay for. One of my clients thought he was going to get $9,000 in closing costs, but that was only if he used the builder’s lender, and he was planning on paying cash. So, I made sure to reiterate that he was NOT going to receive that $9,000,” Michele Harmon said.
Frequent Communication with Builder
Keeping up with your builder can be a time consuming task. With Michele Harmon Team on your side, you can gain valuable insights throughout the building process. Our team will maintain communication with the builder and advocate for your needs as a buyer.
“Because of the great deal of customers builder reps are dealing with, they aren’t always in great communication with lenders. This can definitely cause communication issues as well as missed deadlines, and missed deadlines can unfortunately cost buyers thousands of dollars and cause them to lose their earnest money,” Michele Harmon Team Sales Partner, Jaclyn Henderson said. “Working with Michele Harmon Team can ensure the process goes smoothly for you. I recently worked with a builder rep who seemed absolutely wonderful at the beginning, but when it came time for the buyer’s approval for financing, the builder and the lender were not in communication at all and the builder rep became very hard to get a hold of. If my buyer had not hired me, they would have been out of $3,000 of earnest money. We were also in a situation where we had to ask for four extensions for financing approval, and the contract states that the buyer would be charged $500 for each day of extension. However, I was able to work with the builder rep and the lender to keep them from losing their earnest money and being charged for an extension that was of no fault of their own.”
Help with Overseeing a Home Inspection
It’s a common misconception that a newly constructed home will be flawless. Unfortunately, this isn’t always the case. Whether you are considering a brand-new or centuries-old home, it is crucial to have a home inspection before making a purchase. While builders do have their homes inspected during the construction process, they own the inspection report and buyers seldom get to see what repairs, replacements, or oversights were addressed.
“I recently had a buyer close and they originally had no plans to hire an inspector since it was new construction. However, we decided to go ahead and move forward with an inspection and a lot of things came up that were important, even little things. For example, the dishwasher had a tiny ding in it, and you may not notice it at first but, once they moved in, it would have bugged them forever. Because we had an inspection, the builder paid for a whole new dishwasher,” Michele Harmon said.
The Bottom Line
It is extremely simple to secure representation for your new construction home. Call Michele Harmon Team at 713-818-1330 and we can help you get registered to tour a new construction property today! We look forward to helping you enjoy a stress-free experience building the home you have envisioned, from plan selection through closing day.