RE/MAX Alliance Colorado Real Estate
Thinking about building a new home? How do you know if it's the best option for you?
In todays climate of historical low inventory levels for existing homes, some buyers are turning to builders to build a home from the ground up. This option may be good for some but not so good for others. Building a home is a very time intensive process. If you are tied to a specific time-frame for moving, it may not be the best fit for your situation. The new home building timeframe can vary from 4-9 months, and sometimes even longer. New home builders are dependent on their subcontractors schedules and the weather in which they are working. Given these fluid conditions, closing on a new home is a moving target. There is a lot of excitement around the "new home" smell and feeling, but it does come at a price. A new home will not come with window coverings, upgraded finishes, fencing, complete landscaping. All of these items need to be figured into your budget as additional items you will have to pay for - likely shortly after closing.
If you have a flexible schedule and some cash to address the additional items, then a new build may be a great option for you! And it can be a very exciting process to watch your home progress through the many stages of construction. But it can also be stressful and overwhelming to work with a builder and their representative sales staff. Keep in mind that the sales representative works for the builder, not you the buyer. Most buyers understand that working with a REALTOR ® on the purchase of a previously owned home is highly advantageous. But did you know that as a buyer, you can be represented by a REALTOR® when purchasing or building a new construction? Working with an agent provides you a confidant and dedicated resource to help with negotiations, managing the contract and closing process, and assisting with a formal process to address any issues that arise. Plus you have the power of a real estate brokerage behind you. All of this is available to you with no fees! As is the case with a previously-owned home, a buyer’s agent is paid by the seller, or in the case of a new home, by the builder.
It’s important to remember that if you are considering purchasing a new construction home and you would like a REALTOR® to represent you, you need to engage that agent prior to visiting any builder in person. Once you sign a registration form with a builder, in most cases you have given up your right to work with a buyer's agent and you must work directly with the builders representative.