In the greater Frisco TX area markets, many home buyers are starting to be open to the idea of new home building/ construction again. The economy/ job economy seems to look “more stable” to many people in the North Texas area, so they are open to spending good money on new home construction. The prices in the area have also been inching up slowly and new home building seems to start to make sense again.
For about 2 1/2 to 3 years, many new home builders slowed down their community developments significantly because it became very difficult to compete with foreclosures and short sales in the area. To make matters worse, Sellers also priced their properties around the same range as foreclosures and short sales.
If you compared apples to apples in new home construction, the exact same house in the same community – one sold by a seller and another sold brand new by a home builder, there typically is a $15K – $25K “premium” for new home construction. Comparison is true for prices $350K and below.
There is a PREMIUM of being able to select your carpet, wall color and kitchen cabinets. There is a PREMIUM knowing that no one ever lived in the house before. There is a PREMIUM to be able to make small changes to the existing floorplans sold by home builders.
“Can you enter a new home contract with the home builder without a Realtor(R)?” Sure you can. But the more important question is, “Should you enter a New home contract without a Realtor(R) with a New Home Builder?”
I may sound bias in my proposition. However, knowing what a Realtor(R) could bring to the table versus having personal experience without one when I first purchase my first home (before I became one) – I could tell the difference in the experience and expectation of the process.
Read some tips offered by my previous client (A.R.). She had originally contracted to build a new home in Frisco without a Realtor(R). During the process, her instincts told her that they are not headed the right track because of the negative experiences with the builder. She sought to find answers and eventually found my blog. She contacted me on Saturday afternoon and I guided her what she needed to do. Long story short, her new home was never built and she later used me as her Buyer’s agent to purchase another property where she currently resides.
Hence, she started her writing with, “If I had to start from Square One”…
If I had to start negotiating a new construction contract all over again, what would I do different?
2. Read the standard specification properly and make sure you understand what exactly comes with the house for the listed price. If you are not sure about the lighting fixtures, paint colors etc, insist on a tour of their design center. “lots of paint options” listed in the brochure may turn out to be a variation of 5 white; Dover white, moderate white, Antique white, etc. Choosing a custom colors may cost you upward from $2,000.
8. If crucial information is shared on voicemail, always find a way to record it on some permanent storage.
- Putting Your Life On Hold During Your Home Search
- What every real estate buyer needs to know when buying in these times
- Value Proposition of Your Realtor in Your New Frisco TX Home
- Concerns Living In A New Home Community Still Under Construction
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Copyright © 2010 by Loreena Yeo (3:16 team REALTY).
Originally Posted on New Home Construction Advice – Should You Contract Without a Realtor(R)?