subject: Building Your Own Home? | Consider These Real Estate Tips [print this page] Building Your Own Home? | Consider These Real Estate Tips
So you are going to build your own home. You picked a wonderful time to get started - a time where saving you money is part of the game. Less than five years ago, builders had the lock on new construction prices. Today, however, it is a buyer's market. Make certain to take advantage by using some of these ideas.
First, check out spec homes. They're already erected, never lived in, and builders want to get them off the books, and are willing to do so at excellent bargains. Many were put together before the economy went bad, and now are a simple financial liability.
Just like any other financing, it is valuable to take a look at all your options. The builder may offer you a excellent deal, but other banks or lending operations may have something better. Plus, a little friendly competition may just lower your interest rate by a significant amount
Remember, sometimes the best way to get the better deal is to discuss with the builder. Often builders are willing to discuss new terms, as long as other buyers don't do your research about it. So have a quiet conversation with the premium builder in the area. You might be surprised at how much they are willing to accomodate you.
One place to find exceptional bargains is an almost finished development community.. Most builders want all the homes in the development sold - so they will reduce the montly payments by a significant amount to get the job done Just think about this. Buying one of the last remaining houses in a development means that the community is already set, you won't have to worry about a new house blocking your view, and the builder is willing to cut your costs significantly.
Another tip for purchasing a home in a development involves walking around and talking with people who already live there These conversations will let you know pretty quickly what the builder is like. You'll find out how reliable he is, and whether or not he's willing to negotiate
If the builder offers you an upgrade to compensate for any issue, decline it in lieu of a price cut. An upgrade might place your home's value beyond the norm in that subdivision, which hurts you at resale time. Just ask for a price cut
Be sure to hire an EBA, or exclusive buyer's agent when looking for a new home An EBA works independently of other brokers, on your behalf You'll need to have a contract between you and the EBA, but you can rest assured that he won't be representing the seller as well. Make sure your contractural agreement with the EBA or agent allows you to view all the home listings, not just the ones represented by the real estate company It is important to prevent your right to look for your dream home independantly of the agents.
Knowing the past history and reputation of the builder is also valuable. The local homebuilder's or architectural association is likely to have the information you need It is also crucial to research the builder with the BBB. See if there are any complaints lodged against him professionally Also be sure that the contractors of your builder are paid within a reasonable time frame. Contractors with unpaid bills could be an indicator of financial instability with your builder
Know what you want in a home ahead of time Be specific when you sit down with the builder. Vagueness will cost you money later Be sure to stand your ground when it comes to unwanted or options your budget doesn't allow. In the long term, the cost will be greater than you can imagine Another trick to prevent in your bag is to have a few brouchures from the competition in your materials. Often builders will be more willing to negotiate on prices if they see the competition in their midst
In order to protect your assets, make sure that any contractor working on your property signs a lien waiver, and make sure to hold the builder himself financially accountable. Also, do not allow funds to be withdrawn without the written approval of both you and the bank loan officer. To do so will invite people to take advantage of you.
