Inexperienced home buyers questions (Dallas, McKinney: real estate, credit, how much)

[smaity]

We are planing to buy our first home around Dallas metroplex. We need your help desperately

1. Among Darling Homes, David Weekly, and Aston Woods, which one is preferable builder?
Any suggestions about other reputable builders

2. We just took the decision to buy a house, so we haven't seen many houses yet.
We like new constructions near McKinney, but we are not ready to commit until June (because of work pressure, we will not have time in coming two months for house hunting). Are there any chance of price increment and close out within 3 months?

3. Is that realtors are helpful for new house purchase?

[Rakin]

Of the 3 builders you list, I like them in the order you've listed them.

Yes, there will be price increases. Builders have been going up about 1% (or more) per month the last 2 years and that should continue.

A good RE Agent with extensive construction experience would be very valuable to someone inexperienced like you. An agent who just puts their name on the contract is useless. I've got 6 homes being built right now and I'm very active in the process and selections. There are many agents who are totally useless.

It now takes about 7-9 months to build from scratch. You might find a home that is already started.

Most importantly.... don't expect the builder to discount much (depends on the situation). Any Builder who gives you a huge discount has only jacked up their list price just so they can make a discount look good.

[aggieplaya]

I agree with Rakin. There are good realtors and useless realtors out there. For some one that is new to home buying, you definitely should find a good realtor to help you in the process!

[SouthernBelleInUtah]

Don't be fooled by builders telling you that you can save money by using their agent. That person has NO loyalty to you and is required by law to have the builder's best interest in mind. Get an agent before you go visit any model homes.

Model houses have tons of upgrades that the basic model won't have. When you go to their design center, you will find out that the granite you liked is an upgrade, so is the thick carpet, the very nice lights, etc. When viewing a model house, ask for all upgraded features. You can easily add $50,000 in upgrades to get what you want before you realize it.

[HockeyDadof2]

Of the builders you listed I like Darling & Ashton Woods. David Weekly is a good builder but doesn't rise to the level of the other two IMO. I would also add Highland & American Legends to that list.

[turf3]

I don't have much faith in the value of real estate agents, especially in having a tract house built. You need to research by yourself, rely on your own judgement, and make sure you understand everything that is happening as it happens. There is absolutely nothing in the process of having a tract house built that cannot be understood by a reasonably attentive eighth-grader. If you find the explanations are not explanatory, it usually means someone's trying to put something over on you, or they don't understand it either.

Remember that it is your money, and you have the final say on how it is spent. They want your money. You do not have to give it to them.

Finally, do not sign a construction contract without the complete and final total cost at the bottom. If the building company tries to tell you something like "that's not the way it's done" (this happened to us), tell them what my wife told them: "No, you don't understand. You tell us the complete and total price. Then we go away and think about it. Then, if and only if we decide we want to spend that much money for the product you are offering, we will sign the contract. That's the way it will work."

I don't know what a real estate agent would charge for getting involved in a new house purchase, but if it's 3% on $250k, that's $7500. Do you have any use for $7500?

We had some neighbors who came to closing and faced a $50,000 surprise. When we came to closing we too faced a surprise; the closing total was higher than we expected; we gritted our teeth and paid it; it was $112.00.

[Meyerland]

The builders pay the fee. You can save a good chunk of money using a great realtor, even on a new build. Using a realtor that has experience with the builders and is familiar with the issues in new builds is priceless.

The realtors know how much other people have paid for the exact same floor plan in the same neighborhood. They may even be able to get upgrades.

Most people have experience buying only a couple of new builds, and don't get to see the pros and cons of different builders. Realtors do. That alone is worth it.

[turf3]

So, find out how much the builder pays and negotiate to take that off the purchase price.

Please tell me how you would save "a good chunk of money" using a real estate agent vs. paying attention and doing your own research. The agent's fee comes from somewhere. Are you telling me that the builder takes a lower profit margin on transactions conducted with an agent in the mix, vs. those where the buyers take care of themselves? No? Well, then, the money to pay the agent comes from...

The buyers!

[Meyerland]

Originally Posted by turf3

I don't have much faith in the value of real estate agents, especially in having a tract house built. You need to research by yourself, rely on your own judgement, and make sure you understand everything that is happening as it happens. There is absolutely nothing in the process of having a tract house built that cannot be understood by a reasonably attentive eighth-grader. If you find the explanations are not explanatory, it usually means someone's trying to put something over on you, or they don't understand it either.

Remember that it is your money, and you have the final say on how it is spent. They want your money. You do not have to give it to them.

Finally, do not sign a construction contract without the complete and final total cost at the bottom. If the building company tries to tell you something like "that's not the way it's done" (this happened to us), tell them what my wife told them: "No, you don't understand. You tell us the complete and total price. Then we go away and think about it. Then, if and only if we decide we want to spend that much money for the product you are offering, we will sign the contract. That's the way it will work."

I don't know what a real estate agent would charge for getting involved in a new house purchase, but if it's 3% on $250k, that's $7500. Do you have any use for $7500?

We had some neighbors who came to closing and faced a $50,000 surprise. When we came to closing we too faced a surprise; the closing total was higher than we expected; we gritted our teeth and paid it; it was $112.00.

Did your neighbors use a realtor? I would be shocked if they had.

[OldyGoldy]

Every new buyer needs a good agent to guide him. You may save 1.5% by not bringing one but may spend twice as much by not knowing how to pick a lot, pros and cons of each floor plan, how to negotiate upgrades, how to monitor construction or when to argue about closing costs. Key word is a GOOD Realtor, who has experience and knowledge of your local market. Builder's representative protect builder's interest, their recommended agents are already in their pocket and get bulk business from them, you are buying one only one house. Who do you think they are going to favor?

I don't get why buyer's agents don't get due credit. Bringing a good buyer's agent to the table is like bringing a mechanic/former car salesman to used car dealership. He knows all the pits and falls that you may not understand even if you the best Cardiologist in the town.