6 Things Your Realtor? Wants You To Know About New Construction

As we have worked with new construction buyers this year we have seen firsthand the joy and excitement of a buyer as they see their brand new home completely finished – details chosen months ago finally in place. It is a great feeling of accomplishment after months of waiting to finally see that completed house. However, it takes A LOT to get to that point. With the joy and excitement, we’ve also seen the inevitable frustration about unexpected costs and unmet deadlines. These negative emotions come from the difference between expectations and reality. So when buyers come to us asking about new construction, we try to offer as much information upfront as possible. Here are the 6 things we want new construction buyers to know:  

1. Timeline: Be realistic about whether purchasing an existing or new construction home is right for you.  

New construction usually takes significantly longer than buying an existing home. If you are relocating from Milwaukee to start a new job in Nashville two months from now, new construction is probably not the best option for you unless you’re willing to live in temporary housing first. Be realistic about your timeline up front and discuss the pros and cons with your Realtor?.

2. Representation: You can AND SHOULD have your Realtor? represent you.

The onsite agent for a builder represents the builder (not the buyer), and it is vitally important to have your own representation moving throughout the new construction timeline. The builder will often offer incentives if a buyer uses their preferred lender or title company, and you need professional guidance to navigate these negotiations as sometimes using these preferred parties can be advantageous to the builder and not to the buyer. With all the ups and downs of the new construction process, you should have someone in your corner that is 100% dedicated to representing you. It is common for buyers to use a Realtor? to represent them during the new construction process, so don’t be afraid to take advantage of that option.

3. Cost: What you see in the model home might not be what you get. 

If you’ve been looking at existing homes and feel frustrated that none of them have the granite color/cabinet stain combination you like or have silver fixtures instead of bronze, new construction might be a great option for you. You enter into the process during the construction phase and get to choose many of the features of your new home. However, be prepared for these choices to come at an additional cost. Buyers working with a budget are sometimes surprised to find out that all of the “extras” in the model home (a large walk-in shower, bronze fixtures, ceiling fans, granite options, stainless steel appliances, for example) do not come with the price of the house. Research your options upfront and know what the “extras” cost to avoid unpleasant surprises down the road.

4. Delays: Keep a flexible mindset and expect some hiccups.   

This is not to say that all builder companies are unreliable and bent on destroying your moving plans, but it is just a fact that new construction properties tend to experience some delays and hiccups (even simple weather-related delays can have an affect on closing deadlines). You are working with a home-in-progress, so give yourself flexibility in managing your expectations and scheduling your movers. Your real estate agent should have experience in new construction properties and should offer good advice about these details.

5. Home Inspection and Walk-Through: If it matters to you, say something.

Even though your home will be brand new when you move in, we always recommend that new construction buyers conduct a home inspection. The home inspector provides another set of eyes on the work that has been done and can often give insight into small details you should be looking for at the walk-through prior to closing. At the walk-through, don't be afraid to speak up if something isn't how you imagined. If you wanted Proper Gray on the walls in the master bedroom and instead walk in to find Eggshell White, say something. Mistakes happen, especially with so many companies and teams working on your home, but the worst thing you can do is not mention them and regret it. If you notice it in a walk-through you’re going to notice it even more when you move in. If there is a chip in the baseboard or a squeak in the door, bring it up. 

6. Finished Product: If you want a home that is uniquely yours, it will be worth it.

There is nothing like having a new home, and there is even more excitement when it’s a home that you have been checking on eagerly ever since the framing stage. Building your own home is a priceless experience. Balancing your expectations with reality on the front end goes a long way toward making the transaction a fun and exciting season instead of a stressful one.

If you have been involved in a new construction transaction (whether as the buyer or the agent), we would love to hear your thoughts. Were there any surprises that we left out?