Buying New Construction, Dos and Don’ts, Potential Pitfalls
(Much of this applies to resale also.)
DO Establish a relationship with a REALTOR® early on before you look at your first property whether resale or new construction. The REALTOR you select represents you.
DO Understand the developer and/or the builder’s sales associate does not represent you. You should have someone looking out for your interest. There is no cost to you, why would you not be represented? Likewise for resale, the listing agent represents the seller not you.
DO List the Brokerage firm and REALTOR on the registration form you fill out in any and all new construction sales center. Why? If you do not you may have given up your rights to be represented and lost your opportunity to be represented at a later date if you change your mind. Likewise for resale, advise the agent at an open house that you are working with a REALTOR.
DO Beware of the reservation form. These forms are used to “hold” a property for you with similar pitfalls as the registration form
DON’T Sign until someone representing you reviews the proposed documents at NO COST to buyer.
DON’T Forfeit your rights to representation
DON’T Fall for pressure to sign right away. Various ploys and undue pressure are used to encourage you to sign now such as: reserve before you lose your choice of lot or building/unit location, incentives to sign now…
What’s usual and customary for real estate transaction in the area relative to closing costs, fees, and expenses?
How does the builder contract deviate from usual and customary?
Real estate is local; SWFL has buyers from many different regions of the country. The way it’s done back home will not be the way it’s done in SWFL. Experienced local representation can help you navigate through the maze.
Nationwide developer contracts are very difficult to change or amend if at all.
Local builder/developers are more flexible.
Builder contracts impact the following: Right to inspect, financing contingency (there may not even be one), walk through, requirement to close no matter what. If you think that you do not need to have new construction property inspected you most certainly should have a REALTOR on your side.
Lastly many buyers fail to understand that they are buying a community with all the rules and regulations that come along with it in addition to the four walls of the properties. There are always some restrictions on how you may use your property.
Engage with a real estate professional early on.
Bob Pisa, REALTOR® and Broker Associate, has been assisting buyers and sellers with real estate sales and purchase in the SWFL area since 2008. Call Bob at 239 898-6865
Even more information here…