Purchasing a home, whether it is built for you or is an existing structure, is one of the most important financial transactions of your life. Therefore, it is imperative that you educate yourself on all phases of what is involved including the negotiations that are required.
Beginning Research
It may take a good amount of time to cover and complete the long list of details concerning the home itself, the community in which it will be located and that area’s amenities, about the builder, and other details, but it will prove to be of tremendous value to have all that information. You can start with a Google search for the best new construction builders and the top new communities in the area. Look for testimonials, reviews, and any news you can find on any development you are interested in. Ask the builder to be specific about what the future plans are for the development.
Deal with a Reputable and Reliable Builder
Find out all you can about the background, licensing, and reputation of the builder plus check with some of the firm’s previous clients in order to get an honest assessment of their recommendations.
When you are buying a home directly from the builder, remember the strategy, when you are negotiating, that the sole purpose of the builder’s selling it is to make a profit and sell the home as quickly as possible so that he can move on to his next project. If you have no luck in negotiating the price down, consider asking for particular upgrades that would normally add quite a bit of money to the original price as builders are more apt to agree to those rather than the price itself.
Secure Financing Before Negotiating
You will greatly improve your bargaining position if you have secured financing. Confer with a number of lenders and find out their rates and options. Even a fraction or two of a percentage point can save you thousands of dollars each year in your mortgage payments. The most important part of buying a home is working with the right team, including the mortgage lender, the builder, and a real estate agent who can do much of the research for you, lead you in the right direction, and help you accomplish your goals.
Builders Pay an Agent’s Commission
The builder pays your local real estate agent to represent you, if you desire not to do it on your own, and to negotiate the best deal for you. So why not take advantage of all that experience and also have an expert who can explain to you the reasons for each step along the way?
Be Sure Everything is in Writing
Anything that is verbal is not a guarantee, and that is why you must have every detail in writing. If you do not, an agreement is in no way binding. A home that hasn’t been built yet can be customized, but the builder is going to have limitations. You must also stay aware that the cost will change as you begin to add features to your new home.
Looking for an experienced San Marcos real estate agent to help you negotiate on a newly constructed home? Contact The Damron Group REALTORS, a real estate agency in San Marcos, TX, for more information.
