Buying a home from a builder is not necessarily easier or harder than buying from an individual home owner, but it is very different! This is because a builder constructs and sells multiple homes for a living, with no emotional attachment to any of them. National home building companies have sales and income targets to meet, and shareholders to please.
Because home builders are also home selling experts, you need an Exclusive Buyer Agent on your side! Here are a few reasons why!
Builders use unique sales contracts that are written to their favor. These contracts are complex, written by attorneys with the builder’s interests in mind. As a home buyer, you are at a critical disadvantage if you do not understand the contract you are signing.
Even if you do understand the contract, it will not provide the buyer contingencies that you should have in order to protect yourself!
A newly-built home can have defects in workmanship, installations, or materials. Innocent mistakes can also happen. For example, you might opt for a package of upgrades, but then find that the wrong fixtures were installed or there may be other problems that aren’t evident until bad weather comes along such as a leaky roof or inoperative furnace.
Imagine that something isn’t right in your brand-new home several months after you move in. Will the builder return your calls? Without knowing your rights, it can be difficult to obtain solutions from the builder!
This is why you should have an Exclusive Buyer Agent negotiate your new home purchase, and provide you with protective contingencies. Your EBA will also recommend independent home inspectors who will examine the construction of your home at different points of the process.
Home builders also tend to have their own preferred lenders, and they heavily promote them to buyers. While these lenders may simplify things for the builder, their financing may not be the best deal for you. Your EBA can refer you to trustworthy lenders who will give you the information you need to choose the right mortgage.
Please keep in mind that you should have an EBA at your side before you approach a home builder! Even a casual conversation with a builder can have ramifications when you’re ready to write a contract and can even prevent you from being represented for the purchase. The professional representation of an EBA can save you thousands of dollars, and provide you with important contractual protections.