What you need to know when Buying a New Home ….
I recently assisted a client with a new home purchase after we looked at all available existing homes in his price range he chose to go this route.
I explained to him from the start that I can assist him as his Buyer’s Agent in a new home purchase if we can’t find a home that they like and fits their needs. First we explored all his options with an existing home because that appealed to him and his wife, as well as children most. They were ready to close soon as he liked to move in a certain time frame. For some buyers it is easier to see a home that is completed rather than looking at a floor plan and build.
Turned out the existing homes all had something they did not like, mostly lack of privacy and size of the yard. We looked at several new home communities and decided on the one where they loved the model home. We then looked at all the available lots and picked one where the foundation was already poured so it could be completed closer to his desired moving date. There was still time to select the interior colors and floors. Choosing upgrades is fun for many buyers and picking colors they like as well. I was glad to assist with all that as well.
Once we did all the selections, written the contract, it was time for them to go back to their home state.
He had been pre-qualified with a different lender (I like for all my clients to be pre-qualified before we start looking so there is no disappointment in the house they can get.) and he contacted the builder’s lender who was able to match his excellent interest rate.
We had some challenges but overall everything went pretty well with the construction that could be fixed. Since they were out of state I did the walk-through with the builder and marked all the things that needed to be corrected before we did the Final Walk-through before closing. Lucky for my buyer he had a buyer’s agent because the On-Site Agent does not do a walk-through. My buyer was surprised when he was not there for the final Walk-through even though I had mentioned all that before. There is a benefit to have your own buyer’s agent for a home purchase.
Even at the Final walk-through we found a few more things (the more eyes the better) that my clients wanted to have corrected. Again, he was looking for the on-site agent during this process. But he came when there were issues with the fence which was installed incorrectly and not according to survey. The fence was installed after I did the walk-through for them. We got everything worked out and headed to the closing a little late.
When we got to the closing attorney it was the buyer, me, his agent and the attorney at the table. Even though I told him what to expect seeing it must be different. No seller, no on-site agent. It does make a difference to have a buyer’s agent. After the closing attorney had gone through all the papers and got them signed we were waiting for the checks including my buyer. I could tell he had questions so we opened his package of papers and I explained what he did not understand when the attorney went through the stack of papers to be signed. I like for all my clients to leave the table with a good understanding what they signed and still need to do. He was very happy that I explained what he still had questions about. I think nothing is worse than not being sure what you signed, what your payment is, the amount of taxes, what makes up the payment, and if he starts to prepay some principal what the benefits are.
It makes me happy when my clients have a good experience and leave the table with more knowledge than when they got there. Every closing attorney explains everything differently and I feel there is always something of value that I can add.
Rosemarie Averhoff, Broker Associate
REMAX Metro Associates