10 Things You Need To Know About Building a New Home by Realtor Amanda Houser

Here are 10 great tips by Realtor Amanda Houser to keep in mind when deciding to build your new home:

1. HIRE A REALTOR!
The sales representative that you meet in the model homes works for the builder, not for you. Although they are knowledgeable, friendly and tend to always be on their A-game it is best to hire your own agent (it’s FREE for you!) to help mediate the process in the event that there are any hiccups.

2. HOME WARRANTY INCLUDED
New construction homes come with a home warranty. The most common warranty covers 2-years worth of material defects and 10-years worth of structural defects giving you a peace of mind that an existing home won’t typically provide.

3. WHAT IS THE BUILD TIME ?
The average build time in St Johns county is 7-9 months, so if you are choosing your own lot and building from scratch you will need to prepare for the finished product to not be ready prior to a 7 month time frame. Custom building can take upwards to 11-15 months!

4. WHAT AM I SIGNING?
Builders typically use their own contracts and not a Florida Realtor contract so it must be read carefully (HIRE A REALTOR!) Every builder has their own, different contract.

5. THE COST OF FREE CLOSING COSTS
Builders typically pay for your closing costs paid with use of the builder’s preferred lenders. You will want to be comfortable with the person who is handling your loan process and should not be “swayed” into the builder’s lender because they are throwing money at you to do so. Also, you may end up at a higher rate which in the long run costs much more than the closing cost incentive. Builder contracts typically state they pay no closing costs and instead they offer a blanket amount (ie $10,000) towards closing costs but you are also paying for all of them.

6. NO INDEPENDENT INSPECTIONS
Even though new construction goes through many county inspections you will still want a third-party professional to go through your home. Builder contracts are not contingent on an independent inspector so-HIRE A REALTOR to negotiate that in.

7. NO APPRAISAL CONTINGENCY
Builders contracts are not always contingent upon an appraisal meaning if the house does not appraise for the purchase price agreed upon in the contract then the customer (that’s YOU!) is still required to purchase the home for the contracted price and must come up with the difference in price in cash to their lender.

8. FREE UPGRADES
Most builders are not apt to reduce the asking price of a new-construction home as doing so would reduce the value of every future home built as well. They do, however, tend to negotiate with upgrades and/or features in the home.

9. SPECULATIVE BUILDING
Speculative homes or spec homes as they are more commonly known are a source for a great “deal”. A builder will build a home with no owner in mind/no contract in place and they are motivated to sell it shortly after it is built or even before it is completed.

10. ALL BUILDERS ARE DIFFERENT
Research their construction and/or real estate licenses and check for any complaints, ask the homeowners in the same community with homes that are completed how the process was for them. HIRE A REALTOR who is experienced with new construction sales and/or ask several different real estate professionals about the reputation of the builder.

To contact Realtor Amanda Houser, call (904) 940-5000 or email her at ahouser@davidsonrealtyinc.com.