Brent Hilvitz

Awarded Top 5% Agent in Colorado

Don't Make These 3 Mistakes Buying from a Builder

3 Biggest Mistakes Buyers Make When Buying from a Builder


Buying a brand new home from a builder can be a fun and daunting process. There are dozens of decisions to be made both big and small. You need someone on your side to guide you through the complex process!  Just don't make these critical mistakes

 

Get Your Own Agent 

  • The builder's sales agents are paid to represent the builder, not you! Regardless of what they may tell you. Many will use high-pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder's agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.
     
  • Hire a Buyer's Agent to represent you. Most of the time, your agent will be paid by the builder. Builders generally advertise how much they will pay a buyer's agent. Rarely, unless inventory is low and demand high, do they refuse. A good negotiating buyer's agent can save you thousands more than the commission. 

 

  • Having your own agent to represent you is crucial, he will be your fiduciary and is required to disclose the positives as well as the negatives about the transaction. Builder's agents don't discuss drawbacks. Your own Realtor is required to put your interests first.
  

Don't Automatically Use the Builder's Lender

  • Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it's one-stop shopping for a builder. But a builder's lender might not offer you the best deal. Moreover, the builder may own the lending company. Ask if there is an incentive to use the builder's lender. Sometimes you will get a break.
     
  • Consider alternate sources to find a lender. Your own bank or credit union might offer you very attractive rates and terms, based on your banking history with that institution. Your agent may refer you to his or her private list of wholesale lenders.
     
  • Shop around and interview your lender. Find a banker or Mortgage Broker whom you can trust and with whom you feel comfortable doing business. It's not always about the rates, everybody's rates are about the same.
     
  • Ask to see a copy of your Credit report and FICO scores. 
  • Expect your lender to guarantee its fees. The lender is required by law to issue a loan estimate disclosing all of the closing costs.
  

Don't Assume Because it's Brand New You Don't Need an Inspection

  • Always, always, always get a professional home inspection when you buy any home. Many people assume because the home was just built, that there aren't any hidden problems, or if there are problems, the builder's warranty will cover them.
  • The truth is even the best builders make mistakes, and often if the mistakes are not caught right away, the builder will not repair them. It's important to hire an accredited individual to perform the inspection -- not your dad or your buddy contractor, get a real inspector.
  • Be there for the inspection and ask questions because a new home can contain defects. The HVAC system might be too small or the plumbing could be installed backwards.
  • One time a new home builder forgot to leave an access panel to the water shutoff. Two years after construction the buyer had a major leak there was no way to turn off the water. By the time the fire department arrived to shut off the main valve, what should have been an easy fix turned into thousands of dollars in costly repairs.
  • Construction workers make mistakes. (And let's not even talk about the mustard-stained McDonald's wrappers stuffed in wall cavities.)
     
  • If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue

 

 Call or Text to 303-668-5789

or Email me Today

Brent Hilvitz

Awarded Top 5% Agent in Colorado

 

Redesigned Realty

 


Centennial, CO 80112

Mobile: 303-668-5789

brent@redesignedrealty.com

 

 

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