Realtor’s Advice on Buying New Construction Homes 🏠 | MELANIE ❤️ TAMPA BAY

have you fallen in love with that
perfect model home in a new-construction neighborhood I love them too and on this
episode of Melanie Loves Tampa Bay I’m gonna give you some tips so you can be
smart when purchasing that new construction home I’m Melanie Atkinson
realtor with Smith & Associates in beautiful Tampa Bay Florida as I’ve said
on previous episodes I love new construction and I love representing
buyers on new construction purchases but buying a resale house and buying a new
construction house is a very different process so today I’m going to give you
some tips on how to make that new construction purchase a successful one
the new construction process that I’m gonna be talking about in this video is
referring to a larger builder who’s building out a neighborhood or building
out a big portion of a neighborhood this is in contrast to a smaller builder who
might be building a single custom home for you those are different processes
and I will talk about that in future episodes tip number one use a realtor
yes US Realtors represent new construction buyers all the time but
that can be confusing for buyers because they go into a model home
they meet the sales rep and that sales rep can answer all the questions that
they have in order to purchase the home but those sales reps work for the
Builder and you should want a representative working for you
especially if you find a realtor that’s familiar with the new construction
process their advice can be very very valuable if it’s possible pick your
realtor prior to going to model homes why because if you register with a
builder at a model home you know you fill out that little card that they give
you when you first walk in and you don’t indicate that you have a realtor then
they might not want to work with that realtor later on in the process
now most builders are very happy to work with real estate agents but it can be
very frustrating for a builder if you as a buyer coming in three different times
and picking out floor plans and getting close to writing a contract and then all
of a sudden you bring a realtor in at the last minute and from your Realtors
perspective we want to come in at the last minute
either our advice is valuable throughout the whole process so let us start from
the very beginning so here’s what I tell my buyers if you happen to go to a model
home without me which happens all the time because buyers will go out on
weekends and they have 30 minutes it’s kill so they run into a model home
just tell the sales rep that you’re working with a real estate agent if you
happen to have one of your Realtors cards then give them that card if you
don’t then just write down their name and if you’re on one of those house
hunting trips and you find a house that you really love call your real estate
agent right away and talk about the next steps
the sales rep may make you feel like you have to act now or sign a contract
because another buyers coming in an hour to put down a deposit take a breath
call your agent that’s what they’re there for tip number two is
understanding the different costs and a new construction purchase you may see
that sign at the end of a busy road that says home start at $200,000 then you go
into that model home and everything that is available is closer to 300,000 why
does that happen that’s because the advertised price is at the lowest price
base model with no upgrades and no lot premium so let’s break down the
different costs you may have in a new construction home first you have the
base price of the house that’s the cost of the floor plan you choose with no
upgrades at all the next cost you may have is the lot premium now this isn’t
on every lot in a neighborhood this is only four Lots that the Builder
considers better than other Lots so say the neighborhood that you’re buying in
has a pond those Lots that are located on the pond are probably going to have a
lot premium the better the lot the higher the premium if the lot that you
pick doesn’t have a premium that’s because it probably isn’t as desirable
as the other Lots maybe it backs up to another home maybe a backs up to a road
so as you’re talking to builders make sure you ask them about the lot premium
for the lot that you like construction options does your builder offer a bonus
room option or extended master bathroom or turning a
living room into a den these would be examples of construction options these
are not to be confused with cosmetic options which are picking out the color
of your cabinets and we’ll talk about that next every builder has different
construction options and these costs can really add up however adding some of
these construction options during construction is typically the least
expensive time to do it so you may not need that fourth bedroom right now but
if you decide to have that second baby adding that bedroom on during
construction will be a lot cheaper than doing an addition five years down the
road cosmetic options now these are the fun
ones going to that design Center can be the highlight of the building process
but you can also get a big dose of sticker shock these costs add up quickly
so my advice to buyers is to set a budget and stick to it
there are a lot of things offered by the Builder that can be done later at a
cheaper price the two things that I tell my buyers to focus on are flooring in
the kitchen those things are very expensive and inconvenient to remodel so
it’s best to have those costs rolled into the mortgage as long as it doesn’t
put you over your monthly budget so all of these costs together will determine
the final price of your home so tip number three is negotiating with
builders builders don’t like to negotiate their base prices they have to
keep these prices similar because they’re selling a whole bunch of the
same model as long as people are buying their homes they have no reason to
negotiate the prices however builders are more receptive to negotiating things
or credits so instead of asking for a $10,000 reduction in the house price
have your agent ask for $10,000 in credits towards the design center or
towards closing costs not every builder is going to give you credits they might
not want to negotiate it completely depends on how popular their product is
but it doesn’t hurt to ask now if you happen to be interested in an inventory
home this is a home that’s already built by the Builder or mostly built by the
Builder then that might give you a better chance at negotiating
price because that house is almost ready to go and the Builder doesn’t want to
have to pay for the holding costs of that house again they may not be willing
to go down too much in price but you may have better luck negotiating with a
builder on an inventory home than on a pre-construction one tip number four
closing costs on new construction homes I’ll start this segment off by saying
every builder is different but no matter which builder you’re using make sure you
pay very close attention to the closing costs most large builders in the state
of Florida push all the closing costs except for the real estate fees and some
other fees over to the buyer side this can be several thousand dollars that you
wouldn’t be paying in closing cost if you were buying a resale home now before
you get annoyed or discouraged about that a lot of builders offer a monetary
incentive a rebate if you use their preferred lender and this rebate will
often cover the increase in closing costs but be smart about it and
understand that builders will use this rebate as a big incentive when in
actuality it’s really just covering the cost that you wouldn’t have had to pay
if you bought a resale house so what about that preferred lender that they
want you to use should you use them most of my buyers do actually use the
preferred lender because they want that rebate that rebate can be very
significant however make sure you do your due diligence and talk to other
lenders and make sure the interest rate that they’re offering you is a fair one
an outside lender may be able to rebate you an amount similar to what the
builders offering and give you lower interest rate it never hurts to ask so
do your homework when it comes to lenders number five inspections yes you
can do home inspections on new construction homes if you’re building a
house from scratch I recommend two different inspections
the first inspection is your pre drywall inspection this is when an inspector
comes in and looks at everything on the inside of your house you don’t get to
see that stuff once the drywall gets up that’s the most important inspection
during the building process I also recommend an inspection just before
closing to check and make sure everything is functioning correctly this
would function just like a regular home inspection functions where you get a
report you pass that report on to the Builder so they can add that to the
punch list so everything is perfect when you close on your home so a lot of
people don’t do inspections prior to closing because the Builder will offer a
wonderful warranty that will cover anything that happens after you move in
that’s a great feature in new home construction but it’s a lot easier to
deal with issues prior to closing than it is to deal with them after closing so
get that home inspection number six is construction time expectations say your
builder says that it will take four months to build your house that is their
goal but in reality they never know exactly how long it’s going to take to
finish that build builders have to deal with so many things they have to deal
with weather issues they have to deal with materials being supplied on time
they have to do with contractors doing their job right inspections permits and
so much more it’s a lot to manage for them and doesn’t always go smoothly
trust me no builder wants to take longer to close on a house than it absolutely
needs to take they don’t make money until they close on the house they want
to close as much as you do there are just some things that are out of their
control so what that means is if you’re selling
your current house or you have a lease that’s going to expire close to the time
that your house is supposed to close make sure you look into a back-up plan
just in case there’s a delay for example if you’re renting talk to the landlord
about possibly going month-to-month if you need to if you’re selling your house
see if the buyer will be willing to extend closing or lease the house back
to you if neither of those things are an option then check into corporate housing
and put all your stuff in storage I know it’s a giant pain to do this but closing
delays and new construction happen so frequently that you really need to have
a plan so if you absolutely can’t have a delay in your move-in date then look for
an inventory home it is gonna be a lot easier to pinpoint a
closed date on a house that’s almost done I hope this information helps
anybody out there who’s looking to buy a new construction home if you are looking
to buy a new construction in the Tampa Bay area give me a call I’d love to help
ya thank you for joining me on this episode of Melanie loves Tampa Bay if
you like this video go ahead and click that like button or consider subscribing
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I’ll see you next time with love Melanie you

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