It’s a great idea
to involve a Realtor, for several reasons. A Realtor can connect you to a
builder who is qualified to build the type of home you are looking for. The
builder’s experience and strengths will impact not only the building process but
also whether the final product matches your vision. For example, one builder
might concentrate on larger and more expensive homes, while another might build
more green homes and be more familiar with the products available and
construction methods that make the home more environmentally friendly in the
long term. We are very fortunate to have many excellent builders in this area
who do quality work.
As a Realtor, I
will work with the builder so the cost to the buyer will not reflect any
additional charges to the buyer. I can also help with design features by
knowing the buyer’s needs. Clients find it helpful when I show them a
few newly constructed homes to brainstorm different floor plans.
I am familiar with change orders that may arise during construction and can
instruct the buyer in planning to eliminate as many change orders as possible.
Finally, it is
very important to match the building lot to the home style, and a Realtor can be a
big help in finding good lot locations and sizes. A Realtor is also familiar
with all types of lenders for financing new home construction and knows how to
handle payments during construction.
kind of guarantees should buyers look for when building a new home?
Guarantees should include things like making
sure the builder has a reputation for correcting anything that develops in the first
year after construction. Cabinets, doors, flooring noises, lighting, and other
materials should have a one-year
warranty, and the builder should cover any problems. Major defects that develop
after construction, such as foundation settling, large cracks developing in
foundation walls, HVAC problems, or anything else that causes the home to
decline in value should be covered by a warranty up to 10 years from date of the
Is it a buyer’s or a seller’s market?
Sellers have been reluctant to list their homes
due to risks from the Covid pandemic, so the inventory of listings for most
price points is down. With a lower inventory, we are seeing buyers offer list
price and above, which causes home values to increase. At the same time,
continued low-interest rates are allowing buyers to get more for their money.
In addition, the cost of new construction materials has gone up due to
increased demand for products after storm damage and because some manufacturing
plants temporarily closed due to Covid. So we have a supply versus demand
situation that generally favors sellers. In this kind of market, a Realtor can
help a buyer submit a competitive offer and/or help a seller price their home
accurately and navigate multiple-offer scenarios.