5 things you should know before building a new house

1) Builder’s Contract

A builder contract to build a new house is designed to protect the builder. This is different from most contracts to buy an existing home as it is designed to protect the buyer.

2) Negotiations

While a builder is not typically willing to negotiate on a house that has not been built yet, they can be willing to on a spec or inventory home, especially if it has been sitting for a while.

If you find a spec home you like, find out how long it has been sitting. The longer it has been sitting, the more likely the builder is to negotiate with you.

3) Add-ons and make goods

Since the builder contract does not leave room for much negotiation, keep in mind that building a new house can come with delays. Though not guaranteed, this may be an opportunity to leverage delays to negotiate in “make-goods”.

4) Get everything in writing

If there’s one thing real estate agents learn in this business it is to get everything in writing. This avoid confusion and prevents a he said, she said situation, especially when it comes to things the builder agrees to do for you that are outside of the original contract.

5) Hire a real estate agent

The biggest reason to hire an agent is that it doesn’t cost you anything to get an expert in the industry to have an extra set of eyes on the situation.

Not only is it helpful to have an extra set of eyes beyond your own, a real estate agent is going to help you do the heavy lifting on the negotiating side. This comes in handy when you need to negotiate those make-goods.