Buying New Construction (sales, HOA, credit)

[DeoSan]

Has anyone purchased a new construction home and if so did you use a realator? I'm new to this and wondering if it's something we can go through on or own?

Thanks,

[rational1]

You can buy new construction by walking up to the model home and signing the papers. Whether this is desirable or not- I don't know as I have never done it.

Is there some reason you DON'T want to use a realtor?

[DeoSan]

i don't know how it works with Realator commission if we bought new construction from a builder.

[SVTLightning]

No realtor no commission!

i would still have your own independant inspection done though.

[sh9730]

I bought new construction and did not use a realtor. I felt pretty confident doing things on my own, did research on the builder etc.

I had a couple of minor warranty issues, but nothing major and they fixed them without problem.

As for the realtor, many here point out that it doesnt cost "you" anything to be represented, and if you are uncomfortable at all in the process this isnt a bad argument. My view though was that paying that realtor does cost SOMEONE (in this case the builder pays them), and that cost will be reflected in the eventual sales price. For me, I factored in the fact that I was not costing the builder a commission to a buyers rep in my offer price for the home.

There are risks though as it can be compared to using a sellers realtor of an existing home for both sides of the transaction. The big difference though is with a new build you typically have warranty for recourse on anything that wasnt disclosed, whereas once you buy an existing it is yours to deal with.

Again, if you are not comfortable with the process, using a buyers rep may be well worth it to you.

[nightgirl151]

By going thru the builder without a realtor, you can negiotiate the commission they would have paid to the realtor into your deal- taking that off the asking price or additional money for closing costs.

[KatrynS]

If you decide to go without an RE, make sure you know what others have been payig for your model AND what bonuses they've been given. Often builders will give credit to upgrade finishes, add a pool, pay closing costs, etc, instead of dropping the price since they know the sale prices are easy to find by future buyers.

[Bob's Burgers]

I just bought a a new Shea Home and used a RE. Shea paid his commission and I still got all the incentives and price breaks as my new neighbors did. My RE worked for me and checked on airplane traffic, proposed commercial developments close to my house, answered HOA questions and so forth. He also got me a great home inspector.

[asufan]

You don't need a Realtor, and the prices are pretty much non-negotiable, and you use the builders sales contract with no changes. Basically, the builders' agent handles all of the paperwork, but having said that, why leave that money on the table? If you know someone that is a Realtor, make a deal to split the commission with them. They can take your portion off of the house, so there is no tax paid on it. I always tell people, even though you don't need a Realtor for a new build, it's always better to separate as much money as you can from the builder, and put it in your own pocket.

[Southern Phoenician]

I've done it both ways. We recently purchased a new build (spec) and used a realtor (she showed us several properties though). If you are considering buying a spec, an RE should be able to negotiate a better price. We not only got our price knocked down, we also got incentives, closings costs, etc. She also followed up with the builder when we had questions and ensured our closing went smoothly. It doesn't cost you anything and you should be able to get a price break, especially in this market.