NEW CONSTRUCTION

  • WHO BUYS NEW CONSTRUCTION & WHY?
    • Investors: buy new construction for a variety of reasons.
      • New construction often “appreciates faster” than resale property.
      • New construction provides “tax breaks” the first year of ownership.
      • You can sometimes get “interest rate buy downs” as part of the purchase agreement with the builder.
      • You can sometimes get “Immediate Equity” buy buying below “Fair Market Value”!
    • Home Owners Planning To Reside In The Property.
      • Generally their decision has less to do with optimizing their investment and more to do with getting exactly what they want with few if any compromises. “New Construction gives buyers the ability to have it their way.”
  • THE PITFALLS OF BUYING NEW CONSTRUCTION & WHY YOU NEED PROFESSIONAL ASSISTANCE?
    • The Pitfalls of Buying New Construction:
      • Most “Builders Contracts” are heavily weighted in their favor. Most of the buyer protections have been taken out.
      • Many “Builder Contracts” do not contain an “Attorney Review Clause” so once you sign you have no legal recourse to modify the contract. You are stuck and if you decide not to go forward the builder can generally keep your earnest money as damages.
      • You are at risk if the builder gets in financial trouble.
      • Your home may or may not be completed on time. You are always subject to weather delays, but the bigger issue relates to the builders capacity. Most builders don’t like to turn away business so when the market is hot they will often overextend themselves and commit to unrealistic delivery dates.
      • Some builders have home warranty companies who do regular follow up maintenance during the warranty period. In this case you will generally be happy with the follow up. On the other hand many builders use “subcontractors” to build their homes and to do follow up warranty work. Depending on how much leverage the builder has with his subs you may or may not get good follow up on warranty issues.
    • Why You Need Professional Representation:
      • Many if not most buyers mistakenly believe that when buying new construction they do not need the assistance of a Real Estate Agent. Nothing could be further from the truth! Because of all of the issues listed above, and because of others which I have not listed, it is crucial for buyers to have professional representation. The builder is a professional who knows exactly how to protect his interest. You need a professional who knows how to level the playing field by representing your interest.
  • How Can Total Solutions Realty Help?
    • As an investor with 30 years experience Larry Ballard(our Managing Broker/Owner) has bought many “New Construction Properties” for himself as well as for his clients. He is intimately aware of all the potential pitfalls and knows how to minimize them. This wealth of knowledge and experience is passed along to our agents. Our agent, along with a Real Estate Attorney, can make sure all of your rights are fully represented and that the playing field between you and the builder is a level one.
    • From an investment viewpoint Total Solutions Realty will teach you how to:
    1. Optimize You Buying Power.
    2. Get Immediate Equity.
    3. Buy A Property Which Will Get Higher Than Average Appreciation.
    4. Buy A Property With Good Construction Quality.