| For those in the market for a new built home in Austin | | | | are involved in the financing. This is a circumstance you |
| or anywhere in the country here are a few tips and | | | | do not want to be in and another great reason to use |
| things to keep in mind to not only protect yourself but | | | | a different lender. If the home does not apprise out |
| also make the home buying process as smooth and | | | | with another lender the builder will be forced to reduce |
| enjoyable as possible. | | | | the sales price saving you additional money. If you use |
| The first step is to hire a good buyers agent. Some | | | | their lender, the home will typically appraise for the |
| people think they do not need an agent to buy a new | | | | purchase price so you end up overpaying if the |
| home because the builder has their own sales agents. | | | | appraisal is not accurate. |
| This is a big mistake and puts you at a great | | | | When choosing upgrades take a hard look at what |
| disadvantage because these agents are paid by and | | | | you can purchase and install after you close. Things |
| represent the builder. Often times they will use high | | | | like Ceiling fans and light fixtures can be installed |
| pressure tactics to convince you sign the contract and | | | | afterwards for much less than a builder will charge and |
| act in the best interests of the builder. | | | | you can typically purchase top of the line items for the |
| This is why it is essential to hire a buyer's agent to | | | | same price as the "builder quality" items they would |
| represent you. Builders all pay the commission to a | | | | have installed. |
| Buyer's Agent and at the same time they do not | | | | Make Sure the Builder has a Good Reputation |
| discount the price of the home if you do not use one. | | | | There are at least a couple builders I will warn my |
| An experienced Agent will help you negotiate and | | | | clients about. These are builders that cut corners to |
| save you thousands of dollars. Your own Agent will | | | | keep costs low. If a buyer has had a bad experience |
| represent you, be your fiduciary and is required to | | | | with a builder, the word will get out quickly in a |
| disclose the positives as well as any negatives about | | | | community. Check around to make sure things you do |
| the transaction. They are representing your best | | | | hear about are not isolated incidents because it is hard |
| interests! Builder's agents do not discuss any potential | | | | to actually keep everybody 100% happy. Do talk to |
| drawbacks and are only interested in getting you to | | | | neighbors and really take a close look at the quality of |
| sign on the bottom line. | | | | the construction. I will also personally take my clients to |
| Don't Automatically Use the Builder's Lender | | | | older communities built buy the same builder they are |
| Builders will often try to force you to use their own | | | | considering so they can see how the older homes hold |
| lender because they will be kept fully informed of your | | | | up as they age. |
| personal progress. At the same time the builder's | | | | Hire a good Home Inspector |
| lender will typically not offer you the best deal. In some | | | | Make sure you always, always get a home inspection |
| cases the builder owns the lending company being | | | | when you buy, new or old. Many people think because |
| used and this can be an additional profit center for | | | | the home is new they can skip the inspection but this is |
| them. Always consider more than one option to make | | | | a big mistake. You want to hire a professional and as |
| sure you are receiving a competitive loan based on | | | | a Realtor we can recommend many expert home |
| your credit situation. As a Mortgage Broker & a | | | | inspectors that will do an excellent and thorough job. |
| REALTOR I always offer my clients a reduced fee | | | | Do not be fooled by the builder's inspection. This is one |
| financing option when I represent them as their Realtor. | | | | of the last items that take place before you are ready |
| My interest rates are often ½ point lower than their | | | | to go to closing. This is primarily a time for you to find |
| best offers with lower closing costs. | | | | defects and other cosmetic items you want repaired |
| Verify Option & Upgrade Pricing | | | | before you move in. This is not a full inspection of the |
| Determine which options and upgrades you truly want. | | | | home! An inspector will actually spend about 4 hours |
| Always know that for just about all builders the profit | | | | going through everything in the house. From making |
| margin is the highest in upgrades. Some builders can | | | | sure the A/C unit is properly sized to checking if the |
| sell homes for almost just the cost of construction | | | | roof is properly installed and vented. |
| because they make the majority of their profit in the | | | | These are just some of the topics of discussion that |
| upgrade costs. Choosing too many upgrades can also | | | | any new home buyer should be considering. Always |
| put you in a position where the home will not appraise. | | | | remember that the builder is looking out for themselves |
| This is another reason the builders want you to use | | | | and you need to have somebody on your team that |
| their lenders. You are less likely to have your new | | | | you can trust to do the same. |
| home not appraise for the purchase price then they | | | | |