Buying a New Home from a Builder

I was talking to a friend recently about purchasing a new construction home.  He was surprised that we help clients buy new homes from builders. Builders have agents that represent them, and it benefits you to have us represent you. If you are looking to buy a newly built home, let us know. We can help you navigate the process.  But here are some things you can expect. 

Pricing.  The published price you see on signs or listings is the base price of a new home.  The price will go up from there based on four factors:  1) Lot Premium.  There will be a lot premium for homesites that are in the best locations in a neighborhood.  2)Elevation.  The elevation of each house is different.  This is the front design of the house including the facade and front porch or entry.  3)Structural Options.  You pay extra if you want the builder to add a bump-out, finished basement, or turn a study into a bedroom, for example.  4)Design Options.  The base price typically includes basic kitchen, bath and flooring finishes. When you visit a builder’s design center you’ll be presented with the option to upgrade individual (or packaged) design features of the house.  In all, most people end up paying 10-20% above the base price for a new home.

Negotiating with the builder.  Can you negotiate with builders?  You can always negotiate.  Your success will be determined by the current market a builder is facing.  Builders are often willing to throw in extras to buyers who ask, if they are having trouble moving their houses.  Right now there are about twice the amount of new homes on the market as there normally are.  In some neighborhoods you will be able to negotiate the price down.

Timing.  Buyers who come into a neighborhood early get the best prices.  Prices will typically rise as the project moves along.  Early buyers will have to wait longer for their house, and will have to live with construction going on around their new home longer.

Spec or Custom?  You can buy homes after they are fully built that the builder has designed in a way they think will sell well.  Alternatively, you can buy a home before it’s built and make all the design choices yourself.  If you know exactly what you want and can make those design choices, go for it.  But there are a few advantages to buying a spec home.  1) They typically cost less because the builder wants to get them off their books quickly.  2) A professional designer has made all of the choices and has given the home a cohesive look.  You can look at the end result and see if you like it or not.  3) You will be able to close on the house much sooner than you could if you design it yourself.

If you are thinking of buying a home from a builder, working with us can be a great benefit to you. We will help you negotiate with the builder, set up the proper inspections for you, and be an extra set of eyes throughout the process.  Builders do not charge you extra if you use an agent, but they do require us to be with you when you first walk into their model or office.  Email us and we will be glad to go see houses and neighborhoods that interest you.