Purchasing new construction is usually more complicated and intimidating than buying a resale home. There are many more details and different warranties that apply to new construction.
It is always best to have your own buyer’s agent before you wander into a new construction property, even if your agent is not with you – you have your agent’s name to give to the builder’s representative. This way the builder knows you are represented by an agent and there is no confusion. A buyer’s agent’s services are free to the buyer the seller in this case the builder pays the buyer’s agent.
Many people believe that if they do not have a buyer’s agent then they will reap the benefit of the agent’s fee. This is not the case. The builder will pocket the fee or the builder’s representative will receive a portion and the builder will pocket the rest.
A buyer’s agent will be helpful with negotiating price, upgrades, reviewing warranties, contracts, writing the contingency. A buyer’s agent is required to have your best interest in mind at all times.
If you plan on buying before you sell your current home you will want to write a contingency and it must be included in the purchase agreement. A contingency is also sometimes referred to as a predicated offer. This document states that you have to sell your current home in order to buy the new home, if you don’t sell your current home you are not obligated to purchase the new home. You will get your deposit back from the builder if you are unable to sell your current home as long as it is stated in the purchase agreement. You will not however get back the money you paid up front for the upgrades.
Speaking of upgrades, when viewing a model home remember a builder puts a ton of upgrades into the model. Be sure to get in writing what the standard features are in the home you are building. Review these carefully, don’t assume that because you are building the exact same floor plan as a house you looked at, that your finished home will have all of the same features. Before you go on an upgrade spree make sure you know the exact costs of the upgrades. Also check to see if the upgrade you have chosen affects something else in the house that requires an additional upgrade.
The Louisiana Home Warranty Act requires all builders to provide a basic warranty on structure, slab, systems & workmanship to the home buyer. There is also an additional warranty that many builders give that doubles the standard warranty.
Vet out the builder – how long have they been in business? How many houses do they build per year? Where do they build? Check out their reviews with – the BBB, the Home Builder’s Association, talk with other people who have bought houses that the builder has built. You want a builder that has a solid reputation.
Make sure you understand your liability and commitment before you sign.
The Garsaud Group of Keller Williams is a mother/daughter team. Lisa Garsaud has over 14 years of experience helping buyers, sellers, investors & builders. Courtney Garsaud Oliva is the director of operations, she will make sure all of your transactions go smoothly. Our clients get the benefit of two full time licensed Realtors®.
Lisa Garsaud, Realtor ®
3197 Richland Avenue,
Metairie, LA 70002, US
Licensed in State of Louisiana
Each Office Independently Owned and Operated