New communities pop up throughout the Austin area on a regular basis with homebuilders ranging from national brands to exclusive luxury builders. I would love to say that all homebuilders are created equal and that they are all honest and ethical, but we all know we might find a few scoundrels in the mix.
It is critical to understand the process and know the right questions to ask when signing on the dotted line for a new home. This protects you in one of the largest purchases you will ever make.
First of all, having a Realtor® is a huge benefit. Why do you ask? Well, it’s because Realtors® can represent you and all of your interests where a homebuilder represents themselves and is looking out for themselves first and you second.
Additionally, Realtors® already know the transaction and building process and can pass this expertise along to you.
I would like to share with you a list of questions buyers should ask their homebuilders before signing and executing the contract. They include:
- What business entity or individual will appear on the purchase contract as the homebuilder? Who is this business entity?
- Who owns the lot upon which the residence will be built?
- Who owns the title company that the Seller (who presumably is the builder) is insisting upon using? How much business does that Seller/Builder give the title company?
- What is the relationship of the business entities the homebuilder owns or manages to specialty independent contractors he urges the buyer to use; i.e. custom pools, tennis courts, home entertainment centers, etc.?
- Where relevant, who owns the third party financing agent the Seller (who presumably is the builder) is insisting the buyer use?
- If the buyer wants any upgrades or allowances tied to an earnest money or other payment in advance of closing, what happens if closing does not occur?
- Under what terms and conditions can the Seller/ Builder refuse to close?
- If a warranty or assurance is promised, who is issuing it and what does it actually cover?
These are just a few of the many questions that I would ask during the negotiation process if you chose me to represent you in a new home purchase. Once the purchase contract was signed, I then would be on top of the transaction from start to finish.
Don’t be overwhelmed with the questions and process. Let me help with the details! It’s hard enough just to pick out the right paint, cabinets or flooring!!!
If you or someone you know is interested in buying or selling real estate in the Austin area, please do not hesitate to contact Mary Lynne Gibbs at 512.431.2304 or firstname.lastname@example.org! It would be an honor to earn your business!