Buying New Homes From Austin Builders

Buying New Homes From Austin Builders

Everyone loves the idea of owning a brand new anything, and the allure of owning a brand new home easily tops the list. When buying a new home or one from another seller, it is crucially important to make sure your best interests are being cared for. To do so, you will need proper representation from a REALTOR.

Do I Need a Realtor? Can't I Just Buy From the Sales Center?

Hiring a Realtor to represent you in a new home transaction with a builder is the most prudent thing you can do. When you walk into the sales office without agent representation, you are agreeing to work directly with the sales agent (the builder's representative). Upon your first visit to a sales center, you will be asked to immediately sign in and asked whether you are working with a Realtor. If you attend the sales center alone, you are waiving your rights to having an agent should you decide to make a purchase. You must to go to the sales office with your REALTOR present on your first visit.

Some people are mistakenly of the opinion that they can get a better deal from the builder sales representative by working with them directly. This is an inaccurate understanding of how the process works. The "savings" the builder incurs on commissions will not be passed on to the buyer. If they tell you otherwise, RUN. Contact me first for information if you are interested in any of the new homes offered around Austin and for details on builder incentives.

How We Bring Value to Our Clients Buying New Austin Homes

Making the decision to buy a brand new home from a builder has its advantages, but there are several pitfalls to watch out for, and that's where having an experienced REALTOR can come to your rescue.

Location, Location, Location

If you build a new custom home from the ground up, you usually get to choose it’s location in the community from available builder lots. How do you know which lot to choose among all the choices? Some lots sell at a premium because the builder feels these are more valuable within the community due to size or position. Are they more valuable, and how can you get that premium lot for a discount?

Floor Plans & Elevations

At almost all master planned communities, you pick the floor plan and the elevation. (Elevation is a sub-style of the floor plan, and there are generally two to three different elevations that vary in price for each floor plan.) Will the floor plan and elevation you pick integrate well into the lot chosen, or will it potentially affect your resale value?

Choosing Upgrades From the Builder

You choose all of the finishes, all the way down to the color of the doorknobs. Each builder offers a "standard" level of finish outs, and you can upgrade from this level as desired. Do you know which upgrades will yield the best resale, what price to pay for these upgrades, and which ones you should skip and do on your own after closing?

Which Builder 'Incentives' Benefit You and Which May Not

Builders commonly offer incentives to potential buyers as a sweetener to the sale. These incentives range in style, but generally builders will offer a base amount of upgrade money, and also an additional incentives if the buyer agrees to use the builder's preferred lender and title company. Are these incentives beneficial to you or to the builder?

Home Warranties, Inspections and Your Final Walk-Through

One of the primary reasons buyers prefer to purchase a new home from a builder is the Builder’s Warranty. Buyers enjoy the peace of mind of knowing that if something breaks after closing, it will get fixed. Warranties can vary greatly, but generally a builder will offer an unlimited warranty for the first year on workmanship, and a 10 year warranty on structural (framework) and foundation repairs. These are commonly-accepted warranty terms assuming the builder is a member of the Austin Home Builder’s Association.

Some nationwide builders allow you the opportunity to perform a final walk through with their home inspector prior to closing. This allows you a final chance to ensure the home is completed to your satisfaction and that everything is in its place as agreed upon in the contract. This will usually happen a day or two before you head to the title company to complete the purchase. Do you know what else you should do?

Buying From Local Austin Builders vs. National Builders

There are new homes and condos that have been built throughout Austin that are not in a master planned communities. Austin is a historic town, and there are plenty of older homes in dire need of renovation or replacement. Local builders have recognized this opportunity and have built new homes to meet demand for these areas, particularly in South Austin, Central Austin and East Austin. There are local builders who purchase a lot in a neighborhood and choose to build a single family home, and there are local builders who build multi-unit condos and lofts on huge land parcels. Clearly buyers have many options available when looking for new Austin real estate! Usually homes from local builders are Spec-homes. A Spec is a house or condo that is at or near completion, and only needs a few finishing touches before completion.

Local Builders and Your Home Warranty

Homes built from local builders must adhere to the same builder requirements as nationwide builders. Homes must be built to meet building codes. Building permits are required, and the homes must pass city inspections at different phases of the construction process. Foundations must meet specific guidelines to ensure they are safe to be built on. Builders who are members of the Austin Home Builder’s Association offer warranties that compare to those from nationwide builders.

Your Austin REALTOR (that's me!) Can Help

Please contact me for additional information about purchasing a new home or condo from a local or national builder in Austin. I have worked with many clients who have purchased new homes and have developed great working relationships with builder representatives all around Austin.