Having a seasoned real estate professional by your side throughout the process can raise your quality and your satisfaction. You may even be the envy of the neighborhood!
BUYERS BEWARE
The real estate rules change in a big way on Aug 17, 2024. If you happen to be out looking for homes on your own to buy, every real estate agent you encounter should be making sure that you understand how things work now. And, that you (as the Buyer) could be responsible for paying for your own agent if you use one.
As a Buyer, the only way you can have an agent represent you in a real estate transaction AND not have to pay for their compensation out of pocket is to get a commitment from the seller – up front – that they are willing to cover that cost within the contracted sale price.
Gone are the days where home buyers can roam around, shop on their own and then call their agent after they find a house they like. That decision now has to be made BEFORE you start looking at homes. Subdivision agents are not excluded either. All licensed agents are obligated to clarify what type of representation buyers wish to have up front before any shopping can begin. If you say you aren’t working with an agent, you will most likely be stuck going it alone. And that will be good news for the onsite agent and their builder.
Here are some key things to consider in the process.
Shopping for a Neighborhood
Great news here! As the Buyer, you are free to cruise neighborhoods all you want on your own. The pivotal moment comes when you either register at a new home sales center or you walk through the door of a house you may want to buy. That’s the point where you have to declare your intentions with what seems like such a simple question… “Do you have an agent?” YES is really the only answer that gives you the maximum protection. “Not yet”, doesn’t work anymore if it turns out that you do want to have your own agent. Adding an agent later could result in you to having to pay for their entire compensation yourself (sensing the theme here?).
Selecting Your Lot
Subdivision lots can range in value based on things like shape, easements, topography, adjacent uses, noise and views. I have the unique advantage of having been a registered professional Civil Engineer prior to getting into real estate sales, so I look at everything in new construction through those eyes. Being able to look at the builder’s construction plans and visualize how things will turn out is invaluable when one is faced with selecting a lot early on in a development.
Initial Contract Documents
Our goal is to carefully review the builder’s custom contract and help our buyers understand what it does and does not say, where the deadlines are and what specifically is included in the price. I just pulled up a recent one from one of our clients which is fairly typical and it was 27 pages… I want to make sure expectations are in line with what the contract says will happen from the beginning. That way our buyers know exactly what they are getting and how much it is going to cost because it is clearly stated in the contract specifications and addenda. Model homes are known to have thousands of dollars in upgrades so that buyers can envision what options are available.
Once Under Contract, we remain available to discuss and resolve any issues and questions throughout the process
Design Selections
We are available to assist with design selections as requested – plus we can bring in our Stager if needed. The goal here is to give you all the resources you need as the Buyer to navigate these decisions and end up with a product you love for years to come.
Overall Quality
More than likely, we will be dealing with a builder with a good reputation. Even so, it helps to have multiple eyes and ears on the ground. We have found repeatedly that our involvement resulted in the home got built to a higher level of quality than neighboring homes in the same neighborhood thanks to our added layer of accountability.
Construction Progress
We keep track of and relay photos of the construction process at regular intervals to make sure our clients are informed and can perform needed inspections at critical stages.
Change Orders
There can be several change orders throughout the home building process. Depending on the price point and complexity, we have had up to 17 change orders to the original contract. Keeping track and assisting with various decisions is part of what we do to achieve the best outcome for our clients. We also maintain online files of the contract documents in case there are questions down the road about selections and materials (ex: what type of hardwoods were installed, paint colors).
Framing
As the structural framing nears completion, plumbing, electrical, low voltage and HVAC contractors begin their modifications to rough-in for their installations. Once the rough-in modifications have been completed, that is the time to bring in a home inspector experienced in building codes and new construction. We coordinate this process with the builder. You might be shocked at the things we have seen over the years that needed to be addressed BEFORE they got covered up with drywall and caused settling issues down the road.
This is also the time where many builders will schedule a walk through with the buyer to confirm electrical outlet and any special low voltage equipment (security, audio, home theater, etc) locations.
Pre-Drywall
There are almost always issues that need to be addressed from the framing stage inspection. Timing is critical here because we do not want to impact the construction schedule. We arrange for any follow up inspections to make sure needed corrections get completed prior to drywall being installed and make sure everything is documented with photos.
Substantially Complete
All construction schedules seem to be fluid until the kitchen cabinets are set. Once that happens, the builder can usually lock down a completion schedule and a closing date. We will monitor the progress and seek word from the Builder when they are done and ready. Let’s hope they really are. This inspection is usually a bit of a tightrope act because there is a flurry of activity at the end to get your house ready!
At this stage, we coordinate the final home inspection with the builder and assist with issue resolution so that hopefully there is enough time to resolve the issues and all is in order for the Final Walk Through.
Final Walk Through
Usually this is scheduled by the builder and coupled with an orientation for the Buyer. When we represent the buyer, we want to make sure everything is complete, tight and working before the closing. Everyone is hoping there won’t be anything left to do after closing. While that is not always possible, it is definitely the common goal.
Closing
As the Buyer’s agent representative, we maintain communication all the way up and through closing to ensure the process is as smooth as possible.
Post-Closing Follow Up
Post-Closing Services include coordination and follow up for any items not completed by closing along with fielding questions and being a sounding board for anything that arises during the first year of ownership. Typically, there will be an initial touch up visit by the builder after move-in around the 45 day mark. Anything after that gets held on a running list for the 11-month punch out list with the builder prior to the expiration of the first year warranty coverage.