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Getting the Most for Your
New-Home Dollar
Turk recommends working with a buyer’s agent who is experienced in new-home sales as opposed to a regular real estate agent.
This way your interests- not those of the seller- are represented. “Whether you already have a builder in mind that you want to research or if you’re still searching for one, a buyer’s agent can help.”
You’re in the market for a new home. Not just a different home from the one you own now, but a brand new home. Unlike potential buyers looking for a resale home, your situation entails some specific house-shopping considerations that you should be aware of before you jump into the process.
Martin Turk, author of The New Home Buyers Guide (National Book Network, 800/462-6420), explains that there are a number of ways consumers in the market for a new abode can ensure they get the home they want - for the best deal. He offers these tips:
- Begin by doing research. “Many times people know the name of the builder, but what they don’t realize is that builders form partnerships and corporations that make them hard to check out. And often there are no existing models of a home available; there’s only a person in a trailer with information.” Turk recommends asking this person the location of the builder’s last project, and visiting it to see an example of his or her work. “Go there, knock on the door, ask how their contract negotiations went. Most people will open up and give you information, especially about whether or not the builder was willing to negotiate on price.”
Turk also suggests calling your local office of consumer affairs or Better Business Bureau to check for complaints lodged against the builder.
- Turk recommends working with a buyer’s agent who is experienced in new-home sales as opposed to a regular real estate agent. This way your interests- not those of the seller- are represented. “Whether you already have a builder in mind that you want to research or if you’re still searching for one, a buyer’s agent can help.”
- Be aware that when buying a new home, what you see isn’t necessarily what you get. “New-home models are often loaded with options and upgrades,” says Turk. “People don’t always understand that all of these things aren’t automatically included in the price of their home.” He recommends taking scrupulous notes about what will or won’t be included in your new-home package; ask questions.
Also keep in mind that “with existing homes, you can see it, and you know you’ll close within 30 to 60 days,” says Turk. With new homes, the close time can be significantly extended due to the building process.
- Builders’ contracts are often heavily loaded in their favor. Take a close look at yours. Turk points out two specific areas: First, most contracts say the builder has the right to substitute materials. “Make sure you make that comparable materials,” advises Turk, “so you don’t end up with cheaper substitutes.” Also the builder will most likely write into the contract a provision that allows for late delivery-sometimes up to one year late. Turk advises including a “not later than”: date, or making sure he or she “agrees to start your house within 30 to 60 days. The longer the process goes on, the more he’s going to pay - therefore he’ll be motivated to finish.”
- Finally, Turk says that the best time to buy a brand-new house is right at the beginning of the project. “This is also the riskiest time, so you have to do your research. But builders are in the business to make money, and they’ll raise the price at any time. It could be a couple thousand dollars at this stage, a couple thousand at that stage. You’ll want to get in on the ground floor.”
To contact Turk for more information, write him at 6715 Little River Turnpike, Annandale, VA 22003.
YOUR MONEY October/November 1994
OUR FAVORITE BOOKS:
YOUR NEW HOUSE by Alan and Denise Fields, Windsor Press, 1996.
THE NEW HOME BUYERS GUIDE by Martin Turk, National Book Network, 1994.
LINKS:
www.nahb.com
www.newhouse.com
House Positioning
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