Buying New Home Construction? Beware of These Agent Tricks

When buying a new construction home, don’t let the builder’s agent automatically talk you into letting them represent you and using their lender.

There are a couple important things you should know about new home construction and the lending process that goes with it. 

The agents who represent the builders don’t represent you. If you were to use them, you wouldn’t have anybody looking out for your best interest. This stipulation is actually stated in their contract. 

"Don’t just walk into a pretty sales office without representation."

The builder’s agent also would prefer you to use the builder’s lender, but you still have a choice, and you still deserve a choice. It’s no different than if you were working with a normal seller—just make sure you’re looking for financing options that suit your needs. 

Understand that the builder’s agent will make the builder’s lender very appealing. They’ll give you credits and make it look like they’re throwing money at you. They also might scare you into thinking you might not close on time and that it will cost you more not to use them. 

You need to double-check, though, to verify that the fees you’re being charged relate to what you should actually pay and you’re not getting “credits” that only cover the added fees being charged by the builder. Talk to your own lender, compare apples to apples with them, and make sure you do your due diligence. 

If you have any questions about new home construction or you want to talk more about new home financing, don’t hesitate to reach out to us. We’d be happy to speak with you.

Reno Real Estate: Some Observations on New Construction in Reno

There are a few things that you should understand as a consumer in today’s market when looking to purchase a new construction home. We’ve got some tips to share with you today to make sure you’re making the right decisions when it comes time for you to buy.

The first and most important thing to remember is that the representative in the model home works solely for the builder, who is the seller. This means as a buyer, you need representation as well. You need somebody who will look out for your best interests and try to get you the best terms possible.

We are starting to see some wiggle room in pricing.

The next thing we wanted to mention is that we are starting to see a little bit of wiggle room in the asking price for these homes. A lot of times, builders will act like they won’t negotiate on price at all, but we are starting to see them come down in price more and more.

Finally, remember that the model home you are viewing is likely the most upgraded model possible. The home you get won’t be like that; it will be a standard home. It’s important that you know the difference between the standard and the upgraded option, so you truly know what you’re getting.

If you have any questions for us about new construction homes, don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you.