If you’re like many people, the idea of buying a new home—one that’s never been lived in before—is extremely appealing.
But sometimes people who are buying new construction in Long Beach or the surrounding communities make some big mistakes… and those mistakes end up costing them at the closing table.
3 Things You Need to Know if You’re Buying New Construction
If you’re buying a home from a builder in any area, there are ways you can protect your own best interests, get the best possible deal, and have a seamless, smooth experience.
Tip #1 for Buying New Construction From a Builder: Hire Your Own Realtor®
The builder will most likely have a Realtor sitting in a model home or in the company office.
You don’t want that Realtor.
You want your own, and here’s why: that agent works for the builder. His or her job is to get you to pay as much as possible for the home and to work toward preserving the builder’s best interests.
Your own Realtor, on the other hand, will be working hard to get you the best possible deal while preserving your best interests.
Tip #2 for Buying New Construction From a Builder: You Don’t Have to Use the Builder’s Lender
The builder probably has a preferred lender, and that’s fine—but remember, when the builder has a lender they choose for you, you don’t have the chance to shop around for the best rates. In some cases, the builder actually owns the lending company.
You can use your own bank or credit union (or any lender, for that matter). Your own bank may even offer you more competitive rates because you’re already a customer.
Tip #3 for Buying New Construction From a Builder: Make Sure You Verify Options and Upgrades
Typically, builders make more money when you upgrade from their standard plans; they often make a tremendous profit. When you’re choosing the upgrades for your home, bear in mind that it may be more cost-effective for you in the long run (remember, you’ll be paying for these upgrades for the duration of your mortgage) to skip many upgrades and make improvements yourself over time.
You’ll also need to find out whether you’ll be held liable for cancelling your upgrades once you’ve chosen them, and whether the builder can choose your upgrades for you if you don’t submit a request within a certain timeframe.
Are You Looking for New Homes for Sale in Lakewood or Long Beach?
We’d love to help you find your dream home in Lakewood, Long Beach, or any of the surrounding communities. Call our expert Lakewood real estate agents at 562-882-1581 today to tell us what you’re looking for so we can help you find your way home.
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