Last month, we shared part one in our series on 11 questions to ask your REALTOR® when buying a new construction home in Central Florida, and today, we're sharing part two. Remember, the biggest point we want to make when it comes to purchasing a new construction home is to involve your REALTOR® in the process early on, as they are essential to making sure your interests are represented.
Without further ado, here are the remaining questions you should be asking when a new construction home is what you're looking for:
Are there any hidden costs?
I don’t know if it is fair to call them “hidden costs,” but there are costs you may not know about walking into the model home that can add up and catch you by surprise. Of course, the builder is eventually going to disclose all of the costs to you, but you don’t want it to happen after you have already fallen in love with a floor plan, selected your dream lot, and selected all of your upgrades and features.
Is the price on the sign out front really what I’ll pay to get into the community?
As mentioned above, you’ll most likely end up paying for additional upgrades, lot premiums, CDDs, and more. This means the sign out front is probably not the price you’ll pay to get into the community of your dreams. But having a REALTOR® by your side means having someone that can negotiate with your best interests in mind!
Is the contract negotiable?
Everything is negotiable. However, when you walk into a builder's office on your own, they might make you feel like there isn't any wiggle room left in the contract. Also, while the price, premiums, and other aspects are certainly negotiable, builders are notorious for not allowing buyers to change the terms/verbiage in their contracts.
Are there more risks for me as a buyer when entering a contract with a builder as opposed to buying a resale?
The standard contract used in a vast majority of real estate transactions in Florida is a bilateral agreement that makes accommodations for both parties—buyer and seller. Conversely, the contract used when buying a new construction home in Central Florida is a contract drafted by the builder’s attorney and has been created to benefit and protect the builder (seller), not the buyer. In fairness, we don’t think there is anything wrong with that (the builder should protect themselves), but, as a consumer, you should also know the reality of what you are signing and how it compares to other contracts you may enter into when buying a home.
Should I communicate with the builder while under contract on my home?
After your REALTOR® has negotiated all the terms of your contract and has secured a fully executed/binding contract for you, there is nothing wrong with communicating directly with the builder on some things. If you’re going to communicate with the builder directly after you have an executed contract, the best advice is to keep the communication focused on things such as flooring selections, paint colors, cabinet options, etc. Should something arise pertaining to pricing or a contractual change, your REALTOR® should be included in the conversation.
Thinking about buying a new construction home? Contact us!
Buying a new construction home is a big decision, one that you don't want to make without the facts or an expert on your side. If you have more questions about buying a new construction home, the experts at Dream Builders Realty are here to help! Contact us today for more tips and tricks on buying a home in Central Florida.