Hellobee Boards

If you are trying to use a discount brokerage (eg. Redfin) be aware that sometimes the builders won't pay out the comission if you visit and have said you are unrepresented. So when I went to builder open houses, I just named an agent just so the guestbook info wasn't blank.

I didn't buy new construction, but something friends have told me is that with new construction, they will not pretty much not budge on price. Negotiations will be about the upgrades the builder will do (eg. # of Recessed lighting cans, wiring, upgraded flooring, counters, fixtures) etc. This is because they want to keep the publicly recorded sale price high.

As for mortgages, the advice a broker once gave to me was to shop for a mortgage like this:
-block out 3-4 hrs
-call a bunch of agents and request GFEs all at the same rate (you'll perhaps need to figure out in advance or with the 1st agent what a reasonable rate is)
-compare costs between them

He said that rates change frequently enough that you aren't getting a good picture of relative costs if you ask for rate quotes on different days.

One thing he told me was that every rate is always available but there will either be a cost or a credit. Sometimes it doesn't make sense so they don't offer it.

@sunny: excellent advice!

@wheres_c: not much else to add. But exciting! Congrats!

Are the homes already built/started or not? Your mortgage options might vary depending on whether or not you need a construction mortgage or can just get a conventional mortgage. Hire your own inspector, or use one suggested by the mortgage lender; I wouldn’t use one suggested by the builder because I want my inspector to be as impartial as possible.

We bought a new construction home (after it was finished); but also looked into building from scratch. I personally would be wary using a company that only gives allowances rather than itemizing everything out for you, or only allows you to purchase block “upgrade” allowances, rather than shopping around.

I would also highly recommend calling your state licensing board and/or public/consumer advocate and checking into any complaints the state licensing board or public advocate has received against your builder, or any lawsuits that they have been involved in. There are a lot of meh builders out there getting back on their feet now that the market is decent again; especially in tract housing developments where they are back to just slapping up homes.

Don’t assume the home will include anything; ask about fixtures, appliances, etc. Also ask about specific brands/models for appliances. My in-laws just bought a new construction home in NC and the appliances were so crappy and the absolute worst/cheapest quality available that the oven didn’t even self-clean and had to be replaced within a year. Ask about specific models/brands for water heater/boiler/heating system, etc. You don’t want to be paying $$$$$ for the cheapest stuff out there.

Insulation types (spray foam? Not?); what do they do for crawlspaces/attics/basement ceilings/etc.

If you’ll have private water/sewer, I have other recommendations as well, but those wouldn’t be applicable if you’ll have public water/sewer.

You've got some really great advice so far.

We built our home and were able to secure a pretty great deal because we took out a construction loan and then rolled it over into a traditional mortgage.

We also worked with a small local company that was established and had a great track record.

We had a realtor because we started looking at existing houses first and she found the builder. She also helped us throughout the process and did a lot of negotiating. We were able to pick every single thing out - lighting, appliances, fixtures, etc. I suppose it could be overwhelming, and you really have to keep costs in check, but I really liked being able to make the decisions with no surprises.

Also, ask to do a walk through before electrical is done and mark where you want the outlets. Also, the more outlets, the better.