12 Tips When Buying A New Construction Home
If you have not yet made contact with a seller or builder, you may be able to share the real estate commission being offered with a broker. This means you get 40% of our side of the real estate commission at closing as a rebate. But, you must know how and what to say to protect your commission rebate.
Ask local officials and search for newspaper articles about local flooding and drainage problems. Go to www.google.com (a search engine) and type in "flooding in Hidden Creek subdivision Pasco county" and see what comes up.
Do not give any confidential information to anyone when looking for a home unless you understand what kind of relationship you have with that real estate person.
It is best not to sign a guest book at an open house or builder's model center until you are sure about who is going to represent you when and if you decide to buy. If you sign the book, disclose that you have an agent, ADDvantage Real Estate Services, so you put the seller on notice that you have an agent and ask what the process is to register them.
When builders' representatives or real estate professionals ask questions, they are gathering information they need in order to sell you. If that's what you want, answer them but be careful. If you are talking directly to a builder, chances are that builder is a real estate licensee or broker as well!
By Florida Law, once the chit-chat is over between a licensed agent and the buyer, then it is mandated that the licensed agent inform you of what type of relationship they would like to establish. There are three types of relationships: 1)No Representation, 2)Transaction Broker and 3)Single Agency.
Initial and date all changes in any agreement. Be sure to keep the original; let the licensee have a copy.
Some developers and builders use a separate business entity to sell the Buyer a Lot and build under a different name. There is a Lot closing; then the developer or builder enters into a Construction Agreement under another company name with the same Buyer. The Construction Agreement could hold the Buyer responsible for environmental contamination of the soil. In this situation, most developers and builders try to give the Buyer a "Statutory Warranty Deed" in which they guarantee the ownership of the property only while their company owned it. A warrantee deed is the type of deed you want because it insures the property throughout the entire chain of title. This is one reason why a real estate lawyer is recommended before you sign a contract or agreement with a builder.
Ask if the roads are built with crushed concrete or soils cement. Soils cement can break down with excessive ground moisture creating pot holes and excessive cracking. Not only does this look really ugly and devalue the development, but it can get expensive to constantly patch repair, which will affect you if there is a Condo Association or Homeowners' Association. Crushed concrete is more expensive and a better product.
Be careful of new county roads that might be connected by the new development. What looks like a quiet location might be next to a major road going in to the next phase. Is the road a county road or an interior private road?
If buying a condominium, make sure you receive a copy of the Condo Docs within 3 days of signing a contract or agreement. Otherwise, the contract or agreement is not enforceable.
Be an informed party in a real estate transaction - ask for the written Notice of Representation before you talk to any real estate licensee, including the "New Homes Consultant!" Let them know that you have representation and have the builder's representative acknowledge that you have an agent, ADDvantage Real Estate Services.