First things first…
You will want to take your agent with you. While you may believe you can save yourself money by not bringing an agent, the truth is you can actually end up costing yourself thousands of dollars for not using one. The builder has actually built the cost of the commission into the marketing budget, not the sales price, so not bringing an agent to represent you and your best interests won’t lower the cost of the home.
Not only that, but oftentimes if you don’t take an agent with you from the start, the builder can refuse to work with your agent, so then you can be left without anyone to protect your interests.
Purchase Price For New Builds
Many buyers believe they can shave thousands, if not tens of thousands, off the purchase price. When it comes to new builds, the reality is actually the opposite. There isn’t much wiggle room when it comes to the final sales price. That’s because a builder wants to preserve their price per square foot and protect their future sales price.
Now, you may be wondering why you should bring an agent with you if there isn’t much room for sales price negotiation? Because the agent can oftentimes negotiate in several upgrades or get lower lot premiums that would’ve otherwise busted your budget.
Like mentioned above, your agent is there to protect your interests. Your agent has fiduciary responsibilities to you as their client. That means they must disclose both the positives and the negatives about the transaction, whereas a builder’s agent may only disclose the positives.
Don’t Automatically Use A Builder’s Lender
You’ll find builder’s typically offer certain incentives if you use their lender. They may throw in a design center credit or offer a certain credit toward closing costs. Before deciding on the builder’s lender, shop around to ensure you’re getting the best deal. You may find that another lender of your choosing gives you better terms and rates than the builder’s lender.
When it comes to upgrades, it can be easy to get “shiny object” syndrome. The model home you fell in love with is packed with bells and whistles. It’s important to know which features are standard and which ones are upgrades. If you’re trying to decide which upgrades are worth the money, you can check out the video below on the Six Upgrades That Give You The Most Bang For Your Buck. You’ll also find the video on Five Upgrades To Pass On.
Hire A Home Inspector
One big action item I alway advice clients to take is having a home inspection done once construction is complete before you move in. Many buyers fall into the trap of believing everything is in tip top shape because the home is brand new, but construction workers are human and they make mistakes. You want to have an inspection done to ensure you will not encounter any problems once you move in.
Ready to Start The Process?
If you’re ready to start the new build process in Nashville, fill out my inquiry form. I’ve helped several clients buy a new construction home in Nashville (and the surrounding areas) I’d love to help you navigate the multi-faceted process.