When purchasing a re-sale home, what you see is what you get. This home usually includes blinds, landscaping and maybe a fence (depending in which part of town you are looking). With your re-sale purchase contract, you may ask for the refrigerator, closing cost assistance, washer, dryer and possibly that flat screen TV mounted to the wall. During contract negotiations, you can usually expect to close within 30-60 days.
When you buy a new “to-be built home,” what you usually see is the builder’s professionally staged model home, not the standard “base price” home. The builder’s model home is filled with upgraded features, the latest colors and showcasing the builder’s options well above the basic standard package. During your model home tour with the builder’s sales associate many words will be used, such as optional or upgraded, while walking on the engineered hardwood floors and viewing the WOW kitchen with the latest built-in stainless steel appliance package. You will be given a detailed marketing folder that includes multiple floor plans, site maps of the community, artist renderings of the exterior elevations and a builder’s specification sheet (finishes that are included with the base price). When your wish list is added to the base price, the base price of that home can quickly add up. With lot premiums from $1,000 to $50,000 and additional interior/exterior amenities averaging $5,000 to $100,000 more than the base price, understanding the total package is key to keeping you within your comfort zone.
Purchasing a new home should not be scary. Working with an experienced realtor will help you avoid feeling overwhelmed. Your realtor will direct you to a new home community that will fit your needs, price range, and in an area that you specified. They will be your guide to understanding what is included and what upgrades are of value to your future re-sale buyer. In addition, they will educate you on current market values, trends and future changes in the community. Your realtor will advise you of the additional expenses to expect: closing costs, blinds, refrigerator, washer/dryer, landscaping, fences and your personal touches. If timing is important then be aware that closing dates are not guaranteed when you build a new home.
- Your realtor will be your “voice of reason” when you are overcome by your emotions (which is easy to do when you are in the model home).
- It is very important to bring your realtor to register you on your first visit to a new home community.
- Each builder has its own purchase contract and procedures. Your realtor will help you interpret: the contract and change orders, builder’s warranty program and builder’s standard specs.
- Your realtor can suggest possible inspections that can be done during different stages of construction of your new home.
- If you get into a dispute, you have someone representing you.
- Remember the builders pay for your realtor’s commission, NOT you. FBN
By Valerie Core and Freddi Paulsrud
Russ Lyon Sotheby’s International Realty Associate Broker Valerie Core can be reached at 928-607-4344; Associate Broker Freddi Paulsrud can be reached at 928-853-3737. Together they have more than 50 years of real estate experience in residential re-sale, land and currently representing new home builders including Keepsake Homes/Holdsworth Construction (Ponderosa Trails & The Summit), Everest Construction (Anasazi Ridge) and Aspen Ridge (custom).