11 Tips on how to buy new construction. Buying a home from a building can be a frustrating process. Make sure you’ve got good people protecting you along the way.
0:43 – Who does the home building agent represent? The builder. You can buy without an agent protecting you, but why would you? Most of the time, using an agent does NOT increase the cost of building.
2:44 – The challenges of limited agency (representing the seller and the buyer). Have a separate agent — on both sides.
4:06 – When selecting a builder, watch how the builder stands behind their clients.
4:25 – Edge Homes says, “Once you go under contract, we won’t change the price.” That means you get “built in equity”. That means that when you move in, you will move into a home that has appreciated from the price you bought it for.
6:13 – Builders use a builder’s private contract, NOT the Utah Real Estate Purchase Contract (REPC). Read your contract!!!
7:02 – The process. You get under contract, now what? You go to the design studio to pick all your options (which is the hardest part — to stay in budget). Then the builder engineers the home and get permits. Then the property gets put on “the dig list”. Then, a good builder provides updates every week or two along the way. You work on the loan along the way.
8:57 – How many crews? With so many moving pieces, Murphy’s Law states that if something can go wrong, it will go wrong. Use your agent to work through those issues.
9:55 – There are deadlines in new construction that is different than existing homes. The Dig meeting, the 4-way, the inspection, etc. The sooner you know something is wrong, the better. Bring it up early! You agent helps you all along the way, especially when something goes wrong. “Agents naturally assume they can argue with anyone.” Hahaha. But that protects you.
12:20 – Your builder provides a warranty on the home. Different builders have different levels of warranties. Edge provides a 10-year structural. Tyler shares a warranty story, 3 years after the home was built. There’s a good chance something will go wrong. That’s why there’s a warranty!
15:59 – It’s sad when buyers walk into a home, love it, and then realize they can’t afford the build. Talk to your lender first! That’s our first episode! (https://youtu.be/tBUSa1wqaMI)
17:15 – Even if you can only buy a condo, buy the condo. You can’t out-save the market. Then you OWN the equity and appreciation.
18:10 – What’d we learn today?
19:46 – Bloopers
*No 2x4s were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Travis Maddox
Edge Homes
(801) 472-7159
tmaddox@edgehomes.com
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage’s Jason Christiansen, and Hive Collective at Presidio’s Tyler Cazier and “Mr. Suit” Aric Wiszt.