Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It sounds like you will be very involved and engaged in the project. At the very least hire a lawyer to look over the contract and a home inspector before and after the drywall goes up.
No realtor, home inspector. You are asking realtors if they would hire a realtor, and luckily some of them were honest and said no unless you just couldn't have faith in your self. If you want reassurance hire a home inspector, have your builder add an addendum that he will fix anything the home inspector factually proves faulty etc. Then tell the builder that you want 6% instead of 3% in discount. You probably will only get 3 or 4 but start high and slowly back down if need be. I can't say it enough people agents do not know building codes 99% of the time. What they know is simply what they have picked up, but a home inspector is certified knows codes and really protects you for a lot less then 3 or 6%. Hmm home inspector who knows the codes and laws for a price of about $500 and there insured or realtor who knows only what they have picked up, and there getting a 3%+ commision. HOME INSPECTOR all the way, you can negotiate it, the sales person already gave you the discount.
No realtor, home inspector. You are asking realtors if they would hire a realtor, and luckily some of them were honest and said no unless you just couldn't have faith in your self. If you want reassurance hire a home inspector, have your builder add an addendum that he will fix anything the home inspector factually proves faulty etc. Then tell the builder that you want 6% instead of 3% in discount. You probably will only get 3 or 4 but start high and slowly back down if need be. I can't say it enough people agents do not know building codes 99% of the time. What they know is simply what they have picked up, but a home inspector is certified knows codes and really protects you for a lot less then 3 or 6%. Hmm home inspector who knows the codes and laws for a price of about $500 and there insured or realtor who knows only what they have picked up, and there getting a 3%+ commision. HOME INSPECTOR all the way, you can negotiate it, the sales person already gave you the discount.
What do building codes have to do with anything? The home has to be built to code.
Why would the builder add an addendum, there's typically a warranty in place.
Why not a 19% discount? or 26%, or 11%.......
The Contract process is best dealt with by a Realtor or agent.
The builder has an agent, not an inspector.
The inspector is there for the inspection.
If you wish to negotiate a percentage off of the home you should have something (research/ comps/ recent sales) to base this upon. If you are not familiar with the appraisal process how can you provide accurate comps?
Make no mistake, the builder knows his product, the competition's product, the costs, and where you're trying to go price-wise before you do.
Many agents not only have worked in new construction, but have taken classes, negotiated with builders and developers, work in the industry and talk to other agents, and have been in enough new construction to RECOGNIZE a red flag. If you cannot say the same, you need representation.
It will save you money, I know this is a novel approach, but a Realtors job is to save you money and put the wishes of his principal before his own.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,307,357 times
Reputation: 6471
In my earlier post I suggested that a construction manager was the appropriate person to assist the OP.
I may have assumed some facts not in evidence. For the OP. Do you own the land on which you are having the home built? If so, I stand by my original suggestion. You are merely hiring someone to build a home for you and for that you don't need a Real Estate Agent. A construction manager will make sure that your home is built to the specifications on the drawings. Inspections are done by the local authority to ensure that the home is built to the current code, and he will also inspect the work as well as keeping the project on a proper timeline.
If you are buying a package, land and home to be built, then perhaps a Real Estate Agent could be useful to you. The information you furnished in your OP suggested otherwise to me, but perhaps I missed something, I didn't choose the DMenscha moniker for no good reason
We're looking for the package deal, a builder who already owns the lot, so there will only be one loan for us. (no interm loan). We think we need a buyer's agent, even if it's just for the fact that he (instead of the builder's agent) will write up our contract, and be in town and 'there' while the house is being built, while we are still thousands of miles away.
When would be the times to send in a home inspector? Before and after drywall and at closing? Is that going to be protection enough?
We are only looking at custom home builders who are local, with a good reputation and who are established with 20+ years of experience.
We will be flying over there to look at the lots, the area, the spec homes and work out the details. Since i'm a very picky and specific person as far as the wants and needs of my new home go, I doubt that I'll find a spec home I like to more than 80%. And it would have to be an extremely good deal for me to take it, because I'd still need the cash to make it 100% to my liking...
Another question came up.... if I buy a house for 170k, is it possible to get the loan for say 190k to do the remodeling? Even if it's a brandnew home?
Upgrades... if I build new, why is there no way I can get the upgrades put in the mortgage, why do i have to pay upfront and in cash? Is that the standard? (we're doing VAloan, if that helps)
Thanks so much for helping me out with all this info... I'm driving myself and everyone around me nuts with this house (and right now it only exists in my mind ;o)
When would be the times to send in a home inspector? Before and after drywall and at closing? Is that going to be protection enough?
My company can only allow inspectors to come in after a CO has been issued. And most inspectors won't do it without the CO. However, this is with production building. With custom, you may have more opportunities.
What do building codes have to do with anything? The home has to be built to code. Classic!! Building codes have to do with everything. While the home is inspected by the county during construction it is far more important to have a second set of trained eyes go through the home vs. a realtor. Don't get me wrong there are realtors who can catch some things but which would you rather have a 3% discount and pay out 300-500 for a home inspector to come out 3 times during construction. This should be a no brainer.Why would the builder add an addendum, there's typically a warranty in place. If you have ever sold a home, you should know that warrantys don't cover everything. You should also know that a home inspector may notice a defect that might not be a code/warranty issue but could be a problem. Such as an improper seal etc.
Why not a 19% discount? or 26%, or 11%....... I think that's the point get what you can, 3% is not unrealistic or even uncommon to get in discount . Perhaps you are indicating that if the OP were to use you for an agent you could get them a 19% discount lol.
The Contract process is best dealt with by a Realtor or agent. Yes which the builder would have one or the other to do such contract.
The builder has an agent, not an inspector. Who said they did, hence why the OP getting an inspector was recomended.
The inspector is there for the inspection. Yes and if you ever suggested one of your clients use one you to would see the value, and the cost savings assoc. You would also see that you can hire a reputable inspector to come out during the construction process. Oh and as an added bonus he is insured!!!!
If you wish to negotiate a percentage off of the home you should have something (research/ comps/ recent sales) to base this upon. If you are not familiar with the appraisal process how can you provide accurate comps? As I said if the OP does not feel comfortable with his/her negotiating, and research abilities then an agent would be useful. However if they take 2 hours on the internet they can find all of this information, please don't believe that MLS is the only resource for comps. These things are public record and can be found simply by searching google with your county's name and the words tax or property records following.
Make no mistake, the builder knows his product, the competition's product, the costs, and where you're trying to go price-wise before you do. The question is do you as the buyer or do you feel you are incapable to find this on your own. If so you need an agent, otherwise get on google etc.Many agents not only have worked in new construction, but have taken classes, negotiated with builders and developers, work in the industry and talk to other agents, and have been in enough new construction to RECOGNIZE a red flag. If you cannot say the same, you need representation. Representation in this case would be best served by a home inspector, again they have gone to school for just this thing. Unlike a realtor who may or may not know, and the majority of there training is from trial and error.
It will save you money, I know this is a novel approach, but a Realtors job is to save you money and put the wishes of his principal before his own. This is true, however in a brand new build your best allie is getting a 3% minimum discount for having no agent, a home inspector and your attorney, for me realtor falls low on the list. It all depends on the OP's ability to do research.
Last edited by jenluvshomes; 12-26-2007 at 02:56 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Looking for a package deal...
