- Choose a Realtor – Hire an agent to represent you. The agent will be paid by the builder and will NOT add to the cost of the home, realtor fees are usually built into the builders pricing and an experienced agent can save you time and $$$$money by negotiating on your behalf.
- Carefully evaluate the seller’s lender before committing – Builders often prefer their own lender and will often offer the buyer an incentive to use their lender. Do your research, it might not be the best deal for you, their rates and closing costs may be higher than you can get on your own. Again, your Realtor can assist you in negotiating these costs.
- Research the Builder’s Reputation – If a buyer has had a bad experience with a builder, word spread very quickly in the community. In addition, check public records for lawsuits or complaints.
- Hire an inspector – Why you say? A new home comes with a “bumper to bumper” warranty that covers the home for the first 12 months. The problem is that many problems won’t surface until after that 12 month warranty expires. Why not have the builder correct issues at their expense prior to closing instead of you footing the bill when you go to sell the home. Most inspection companies will do several inspections during the construction process before items are covered with drywall and insulation, this is usually done at set intervals and is for a package price
- Read the contracts carefully and don’t be afraid to have an attorney look over the contracts to protect you – Make sure you know your rights as far as removal of contingencies and your cancellation rights. Make sure you understand your commitments and liabilities.
Don’t be afraid to stop and ask the neighbors about their experience with the builder. Visit your home during construction regularly, making lists of questions or issues that you observe. Don’t assume that items in the model are the same items you will get in your home, builders usually load up models with lots of options. Walk the model and make notes of the items that have been upgraded and decide if those upgrades are worth the cost to you. Keep resale in mind while building your home, don’t build the home so specific to your needs that it won’t fit a buyer’s needs in the future.
We are lucky to have a vast array of builders to choose from in the Indianapolis area, a list of some follows. Feel free to give me a call and I will accompany you on your first visit to assure your experience is the best it can be!
There are also an vast array of custom builders, I will be glad to assist you in your search if you need assistance!